I've been following the whole NFT scene for a while, and it excites me, a lot.
So I wanted to share with you a breakdown on what the heck it is.
Here we go...
I’m assuming you’ve heard of Bitcoin....
Which is a cryptocurrency.
If Yes, read on (if no, click here to read this and then return to this article)
Well there are other cryptocurrency’s, such as Etherium and many others.
Bitcoin and Etherium tend to be the most well known and used ones.
The simplest way to explain what cryptocurrency is that it's like money, but it’s like a worldwide currency, that banks do not run.
Many companies accept payment in Cryptocurrency, with Tesla accepted bitcoin to buy a car back in Feb 2021.
When you pay with cryptocurrency, it’s ALL recorded on the block-chain. So you can see where transactions have come from and whats been bought etc etc. Personally I think it’ll be the currency in the future, and money will be redundant.
Because of this ‘block-chain’, which is essentially the digitally way of noting down all transactions, every transaction 'in a sense' gets a digital certificate.
So, whats been happening for the past 1-2 years is people have started selling digital products (such as art) on this blockchain. So what happens is, a seller puts up a piece of digital artwork for sale, on websites such as 'Opensea' and you have to buy it in say, Etherium. Someone buys it. Then they own it and it’s recorded on the block-chain that they own it.
This digital only things are called NFT’s.
Top artists have started selling digital only art pieces, and they’ve been going for mad money (one was $60m). Even the Twitter creator sold his first tweet, as an NFT, for $2.9m. That means someone owns with a digital certificate (NFT) the tweet. And can sell it on, keep hold etc. Just like a piece of art from a museum.
This is crazy as if someone buys this art, they don’t get a physical version, they just get put on the block-chain that they own it.
Almost like a futuristic way of showing off that you own 'this and that' art.
What the blockchain allows is for people to have a public wallet, and people can see what you’ll own.
So for example, in the future, the public wallet, will/should be on your instagram account, and you’ll be able to see all the NFT’s that you own.
People will be able to 'show-off/flex' all the things that they've bought. It might have their car, house, sneakers, World Cup final ticket, you name it, they'll be an NFT for everything you buy.
The reason I’m telling you all this is, because it’s now very much coming into the mainstream, or won’t be far off. A lot of companies/brands/etc are starting to give people ‘real life’ things with the NFT they buy from them.
For example, Kings of Leon, were selling their latest album online, and with that, you got front-row access for life. The token owner also gets a VIP experience that includes a personal driver, a concierge at the show to take care of their needs, a hangout with the band before the show, and exclusive lounge access. Upon leaving the show, the fan’s car will have four bags filled with every item from the merch booth.
The person paid for it in Etherium, and not in ‘real’ money. So Kings of Leon, either cashed it out, or kept it in Etherium, which has been increasing in value.
But it's on the blockchain, who bought and owns it, and how much they paid for it.
Sports teams are starting to jump on it. Mark Cuban, the owner of Dallas Mavericks, has said, in the future, ALL season tickets will eventually have to be bought as NFT’s. What that means is, you’ll have to buy using Etherium or Bitcoin etc. When you buy your season ticket, it’s put on the block chain that you own that ‘seat’ for the year or beyond.
You'll have a digital certificate to say you have bought that seat/season ticket.
In the short term, they are saying that because of public knowledge, they can’t do that yet, but if anyone buys a season ticket, they’ll get an NFT (digital certificate) which the Mavs will sort, with certain seats having certain perks (such as VIP, free jerseys, etc).
All the NFT’s do is digitised everything you own and purchase.
Gary Vee (an entrepreneur) has just sold a load of digital art that he drew. But with every one had a different ‘real world’ perk. E.g. ‘GIFT GOAT’ means that the person who gets it will get random gifts sent to them for 3 years. ALL the images that sold give everyone access to his convention for 3 years. People have been buying them and selling them for more.
This is not a sense of if this will happen, it’s when.
And we are excited for what it'll bring.
We have tons of ideas how to implement NFT's in Sports Teams and 'normal' Businesses.
If you'd like to discuss this, please shoot us an email on firstname.lastname@example.org