Non-Fungible Tokens: What Are They?
Crypto adoption seems to be working on a tidal timing, from its beginning until now, adhering to global market fluctuations that seem to have no impasse.
NFTs played a significant part in the rising of the global crypto and DeFi communities due to their curious and fashionable usabilities, something key for the establishment and development of the majority of the collections that nowadays are still thriving. 2021 was a key year for this event, where masses of people suddenly entered the crypto ecosystem hyping up the space and witnessing a real possibility of developing their craft and living from it: lots of new media artists, graphic designers, developers, writers, musicians, law and marketing specialists saw a new way of creating, plunging in and not looking back.
But, what does this imply? Stating that a digital asset is Non-Fungible means that it is non-transactional: a.k.a unique. It gives users personal property over it, the ability to track it, and registration of it inside the internet through blockchain technology. NFTs are fully transparent digital tokens that came here to revolutionize the way we create, consume and share digital goods, favoring the constant merge between our physical reality with virtuality, and favoring the empowerment of those who once found it impossible to profit from their craft on the internet.
Current Use Cases
With NFTs creating the notion of digital scarcity, a new way of doing business was born. From a JPG to a PDF or a video, anything could turn into an NFT. The only condition is this: the asset should be ingrained on a blockchain. Which one? The one of your preference: from Ethereum, to Solana and Elrond, the sky's the limit. This allows the user to claim ownership over digital assets, so now you can be the owner of a famous work of art or the digitalized constitution of a country…possibilities are endless when it comes to this technology, especially in its beginning stages where everything is yet to unfold as it was back in 2020 and 2021.
Nowadays, NFTs are mainly being used in the entertainment industry as digital tickets to private venues, and in the gaming industry as skins and tokens. Many marketing experts, developers, engineers, and creatives are still trying to figure out new ways of interacting with this technology and the uses it could bring to the collective, but it’s safe to say that we are still experiencing an early adoption phase and that new interesting use cases are yet to unfold.
A New Sense Of Belonging: Ownership & Branding
Since the beginning of time, communities have been built around shared values and ideas, represented by symbols, and connected through communication. Connecting with people around the globe has never been easier nor quicker than it is today, and this is showing ripple effects in the way we do business. Globalization is allowing us to meet people from the other side of the world, and still be able to successfully do business, interact and build meaningful bonds. With NFTs now being used as the distinctive image or symbol of each digital community, even small groups and international brands are using this to their advantage as something I like to call community branding: now we are able to recognize and categorize avatars into groups in a much more visual and faster way.
The way community building enhances and elevates a digital product built on the blockchain is through NFTs. Non-Fungible Tokens are a symbol of belonging, and they can be used as merely an avatar to distinguish your community from the crowd, or they can mean being a key part of something greater. Social media, and more specifically, Twitter and Discord are still the key platforms through which crypto communities communicate with each other. Nowadays, it’s easier than ever to find a niche that represents your diverse interests, from memes and dank humor to something serious and global, like women's rights.
As we mentioned above, these communities are built on social media, where people connect and share their thoughts, ideas, values, and jokes freely to bond with each other. NFTs are merely an excuse people found to build digital communities and expand their message to a broader scale.
Non-Fungible Future: What’s To Come?
Some people are saying NFTs will reach everyday life transactions becoming a mainstream way to buy and sell goods and services, such as private and public transportation, concert and museum tickets, holiday bookings, and other leisure activities. Some others may even argue that this technology will be used for showcasing our ownership over physical belongings such as property titles and university degrees. But the future seems closer than we had imagined: some companies being built right now, like TravelX, are even proposing to use NFTs as plane tickets!
As these market events and flow settle and time passes, we will have to wait and see to what degree NFTs reach the general public and become ingrained in our general culture, even though it is undeniable the big potential these tools have to change our lives. And this potential, paired with a long-term vision and clear goals, is the reason why crypto experts keep repeating that a bear market is still the best time to build a product. Only real believers, seed investors, and trendsetters will see this as what it really is: one of the biggest opportunities to discover and create value while building wealth over time. At Rather Labs, we count on teams of professional developers and creatives to bring to life the sharpest visions and revolutionary ideas. Are you ready to develop the next breakthrough project?