With the evolution of blockchain tech, NFT’s have been a big buzz for some time now. You can use NFTs in any industry, including the art and entertainment industries. According to Statista, 23.7 thousand NFTs were on sale by the end of the first quarter of 2021.
It might be the solution that artists and entertainment enthusiasts are looking for.
What Are Non-Fungible Tokens?
Non-fungible tokens are tokens that represent an item or work of art. Unlike fungible tokens like Bitcoin, they have a unique value. Bitcoin for example is fungible because the value of one Bitcoin will always equal that of another Bitcoin.
An NFT on the other hand is unique and has its own value separate from any other token or NFT.
Examples of fungible tokens are the US dollar, Ethereum, or Bitcoin. Non-fungible tokens are things like works of art, real estate, music, or collectibles.
NFTs are non-fungible assets that have a token. That means they’re virtual assets that have a digital unit and you can buy or sell. NFT’s have a unique non-transferable identity that users record on a blockchain. This is why they may be applicable to artists and collectors who want to protect their work.
When you buy an NFT, you are buying the work of art linked to it. The transaction of the sale has registration in the blockchain. Even though the work of art is unique already, each token is also unique to that work. Through the blockchain there is a permanent record of the sale and proof of ownership.
NFTs applicability in art and entertainment
The main advantage of NFTs is that they are based on the blockchain. That means artists can be sure their work remains authentic. They can connect to the broader marketplace since blockchain is an open ledger. And they can have more security in their work.
NFTs help artists earn good money while maintaining copyright over their work. This is the reason why there’s been a big buzz about NFTs. It has led to the rise of NFT marketplaces and NFT minting platforms. There are many NFT auctions where artists have earned a lot of money, such as Christie’s Auction House.
Another advantage of NFT is data storage. Once you create an NFT, you can always trace it whenever you want. Unlike other forms of art or digital files, you cannot duplicate an NFT.
The entertainment scene uses NFTs for selling tickets. This has helped to regulate and prevent ticket fraud. Ticketing companies can keep track of tickets that are available. This has helped to increase profitability.
Companies can also make more profits as they cut down on the intermediaries involved. Blockchain removes the need for middlemen as transactions are direct. Many gaming platforms are also optimizing by using NFTs.
The NFT Market
NFT platforms are either open non-curated platforms or curated NFT forums.
Curated NFT platforms account for up to 71% of the total NFT at sales. The NFT market got a boost by the total rise in interest in the market since the pandemic. The total crypto market has a wealth of $2.5 trillion, according to Coinmarketcap. NFTs are a token type that crypto investors can use to diversify their wealth.
There has been high media coverage on NFTs, which has also created a lot of interest in NFTs. The future’s looking good for NFTs.