Non-fungible tokens are a form of cryptographic currency that symbolizes a one-of-a-kind digital asset. It is built on the block chain and operates similarly to bit coins (and other crypto currencies), with web servers racing against one other to solve complicated mathematical equations to encode a piece of data and produce a personal secret key; however, the tokens are non-fungible.
The genius of nft marketing services is that they flip the most common application of block chain on its axis, using cryptographic invoices to assign a specific piece of electronic commodities to a specific cryptographic token, rather than documenting interactions.
Making Digital Goods Scarce and Valuable
Digital products have been around for quite some time and are particularly popular in computer games.
An available game made $1.8 billion in income in 2019, with a large chunk of that coming from in-game item sales. However, collectors have not viewed digital items as having much value since they can be readily reproduced.
NFTs, in a nutshell, allows for the creation of digital collectibles. NFTs enable the creation of digital scarcity in an abundance-driven digital environment where replicas are quickly generated and circulated. And, as the adage goes, scarcity generates value. An NFT also makes digital products more marketable, increasing their chances of gaining value through trade.
Digital Media: Unlocking New Revenue Models
NFTs might also change how digital media is delivered and sold, which could be a game-changer. Most digital material is currently marketed through platforms, whether they are ad-supported, such as Facebook or podcasts, or premium service, such as Netflix.
These platforms operate as a conduit between content producers and users, taking a share as a result of their distribution role. Although artists retain copyright protection to their work, when they post it for publication, they transfer a portion of their control and ownership to the property developers and, in today’s meme culture, its customers.
Tokenizing Service & Experience Access
Aside from encrypting digital products and media assets, NFT is also being used to authenticate access to online interactions. Microsoft released a game this week that honors women in research and pays gamers with NFTs that secret access games.
This use case provides a unique perspective on access control for brands. Digital tickets are often easy to transfer and exchange since they all serve the same purpose: to authenticate access to unique experiences, both online and in real life.