Making Money with Non-Fungible Tokens (NFTs)
The rise of Blockchain Technology has opened many new avenues for world economy and exchange. Its most popular product to date is the crypto-currencies, which continue to get more and more acceptance with each passing day. Be it Bitcoin, Etherium or DogeCoin, the crypto-currencies have become a known phenomenon across the globe and are quickly becoming the most liked medium for investments and transaction.
Among the many new opportunities brought by Blockchain technology, which also include a new method of the decentralized selection process, are the Non-Fungible Tokens or the NFTs. There are many ways to use make some big bucks using the NFTs, but one needs to know how it works to make the best use. To understand NFTs, we can first look at the basic formation of a Blockchain and how it works.
How Blockchain Works?
To make things simple, we start by looking at the word “Blockchain”. It is a chain of blocks, which are actually data carriers, connected to each other to form a greater database or collection. Each block has its own unique signature, serial or hashtag, which is used to identify the blocks. They also carry the signature of the block preceding them, so that the chain cannot be modified or broken without getting visible.
One might ask, what if the controller chooses to modify a block or chain without anyone noticing? This is where the greatest strength of Blockchain technology lies as it doesn’t have centralized control. The chain is monitored by thousands, or more, miners across the globe, who will notice anytime there is an irregularity in the chain. So one thing is for sure, there is no chance of wrongdoing when it comes to Blockchain.
Now to NFTs
As we learnt that each bit of data, or block, has its unique and unchangeable identity, so doesn’t it solve the longtime copyright and ownership issue online? It actually does and that is how we get to the NFTs. An NFT is a work of digital art stored on a Blockchain so that it keeps its unique and interchangeable identity. So if you have created or bought an NFT, which can be an image, video, or any other form of digital art, you can always be sure of proving your ownership for it.
A BBC article on NFT explains it through the example of the renowned Monalisa painting, which though exists physically as an original work, has many copies. So in the digital world, where work can be easily duplicated, the original NFT is the one that carries actual value and can be bought or sold.
So now, let’s get straight into money-making and see how NFTs can help people earn big.
Monetizing NFTs
The monetary aspects of crypto-currencies are now widely known. Yet, there is still lesser talk about how NFTs can be used to make money by players of different industries. Though it is still a new concept, it already has brought some success stories to make it the talk of the town, or the planet rather, very soon. So let’s take a look at who can benefit the most from NFTs and how.
Digital Artists
If there was the problem of counterfeits or copies in physical arts, the problem is far greater when it comes to the digital world. The reason is simple, copying or replicating anything is much easier now and tracking the original quite difficult unless you are a renowned creator. This trouble is now solved completely due to the NFTs, as digital artists can now store their work safely, retain ownership rights and transfer them once they get a good enough price for it. The latest example of this is the art piece named “Everyday: The First 5000 Days”, created and sold for $69 Million by Mike Winkelmann AKA Beeple. This is just one instance where an artist has benefitted through Non-Fungible Tokens, several others have done so and many more will be following suit.
Sports and Entertainment Authorities
These entities really find their way every time, don’t they? Well, yet again, the sports and entertainment industries find themselves in a situation to earn big, this time by using NFTs. The collectables are among the most sought-after things for enthusiasts all over the world. So whether it is the NBA, Marvel, or any other entity that hands out collectables, now it can do so digitally.
What it holds in store is the increased security for online exchange, better value-attraction for the fans and safety against counterfeits.
Gaming Companies
One of the greatest beneficiaries of the digital boom was the gaming industry, which successfully utilized the global network to connect players from around the world. One thing about the gaming world is that it is filled with virtual items like the gold of World of Warcraft, skins in Counter-Strike and the loot boxes in Call of Duty. All these items are highly attractive for gamers who spend a lot to collect them. What can be better if the process is made simpler, secure and even more transparent? And this can be done through the NFTs.
The Non-Fungible Tokens are just at the beginning of the long path of worldwide popularity and acceptance. They have the hallmarks of being the solution that was needed to bring more security and transparency to online exchanges. It will make artists get their due share in terms of ownership and earning, while also open many new ways of making the digital world safer and more profitable for all.
