THE UNDISPUTED POTENTIAL OF THE NEW NFT MARKET FOR BRANDS

The great advances in technology in recent years force us to be aware of the latest trends that arise related to digital marketing so as not to stay off the hook carrying out the same strategies for years and years. Technological innovation, how could it be otherwise, has also reached such artistic aspects as creativity in non-fungible tokens or, what is the same, the famous NFT Development.

Many still do not know what we mean since, although it is something that has been evolving for a while, it is now, in 2021, when we are experiencing the great explosion of NFTs both creatively and fiduciarily, even relating to the blockchain. Are you surprised that something related to marketing, and more specifically creativity, has something to do with cryptocurrencies? Next, we will delve into the most important characteristics of NFTs and why they can be an important asset for brands.

WHAT ARE NFTS AND WHAT ARE THEY FOR?

NFT stands for Non Fungible Token or Non-Fungible Token Development , but to explain this definition, we must be clear about what the word “token” means in the industry.

Tokens are digital assets, that is, assets that can be bought and sold, very similar to cryptocurrencies. Although the tokens can be used in a similar way to cryptocurrencies, many times, the function of the tokens is limited to working within a single blockchain network. The purpose of these tokens is their use within this own blockchain network.

The main difference between cryptocurrency and NFT is that cryptocurrencies are fungible, and therefore can be changed, while NFT generator are non-fungible and therefore cannot be changed, which means that these assets have a unique identification. , which cannot be replicated or changed.

Therefore, we would define an NFT as a unique digital file that can be bought and sold on blockchain networks like Ethereum or Tron .

When a person buys this NFT, they get the rights to the token. For example, if a person buys an image or a song, they are not exactly buying the content itself. In fact, the purchase of the NFT does not entitle you to ownership of the artwork as such and you do not gain control over distribution rights in any way. Rather, you do own the rights to this unique token that connects your name to the artwork or file you purchased.

WHAT ARE NFTS LIKE?

As for the types of files that can be converted to NFT, we can find image files, video files, sound files, such as a song, etc. That is, any digital file that can be considered unique.

But how can we consider a video file to be unique, for example, if that video can be copied infinitely? It is precisely the condition of authenticity of the first video that gives it that «power» .

Let’s think of a song. We may be able to listen to that song, but if we have the NFT, we can say we have the original song. For this reason, NFTs are often considered essential files for art galleries.

We can see another example with what happened on March 5 with the CEO of Twitter, Jack Dorsey. On March 21, 2006, Jack Dorsey posted on this social network “I just set up my twitter”. Fifteen years later , he announced the auction of his first tweet , which ended in March with a value of 2.9 million dollars (almost two and a half million euros), which will be donated to an NGO called Give Directly .

HOW ARE NFTS AND TRADEMARKS RELATED?

What it seems with our analysis is that we are witnessing a new art buying and selling model that is part of the new blockchain trends. However, this new model is capturing the attention of both personalities and brands.

Although at first we have seen this market with characters from the technological world, these types of initiatives have taken shape with youtubers, singers, athletes, artists or influencers, so brands have also begun to claim their space .

As we realize that there is a market for people who want to acquire digital goods, more ideas will emerge to advance the digitization of this type of trend by creating collections that can attract more public.

To create your own NFT.