What is an NFT?
- NFTs, or non-fungible tokens, are digital content pieces linked to the blockchain, the digital database that underpins cryptocurrencies like bitcoin and ethereum. Those assets, unlike NFTs, are fungible, which means they can be replaced or swapped for another identical one of the same value, similar to a Yen note.
What are NFTs used for?
- NFTs are one-of-a-kind cryptographic tokens that can’t be duplicated on a blockchain. Real-world goods such as artwork, VIP Tickets and real-estate can be represented with NFTs. These real-world tangible goods can be “tokenized” to make them more efficient to buy, sell, and trade while also lowering the risk of fraud. Although the technology is early and bad actors do exist in the space who seek to simply screenshot and post art that already exists which has sparked many intellectual debates around IP or Intellectual-Property in the space.
How can NFTs be used to bolster brand identity?
- NFTs are truly just cutting away all the physical ties and selling the spirit and breadth of a brand’s creative capabilities. There are many categories of NFTs but specifically in the realm of the utility NFT lies two powerful instruments now available to brands through the use of this technology. Direct To ETH marketing — in which you provide value to your customers, thus driving up engagement while getting across your call-to-action. One of the other powerful techniques is Asset/Event Backed NFTs — a technique popularized by The Ancient Hardware in which NFTs are stored in a digital artifact such as a QR code on physical goods which is then used to claim an NFT.