Why NFTs ARE IMPORTANT!
First, we should briefly address what is a Non-Fungible Token “NFT”, as we are hearing and reading headlines about NFTs more and more, while interest grows globally. Still today, few understand what NFTs really offer or the impact and ramifications that NFTs will have on our future. So, to start, I would like to cover a few key points for anyone thinking about creating, using or buying NFTs for any reason that hopefully can help to further the understanding of NFT practical applications and possible use cases.
Let’s start with what are NFTs?
A brief description in a nutshell! NFTs are cryptographic token/units created on the blockchain which are non-fungible, semi-fungible, and in some cases, fungible cryptographic wrappers consisting of programmatic sets of parameters established by specific instructions on a blockchain. NFTs can represent an unlimited range of unique or homogenous values for the embedded digital assets/content and metadata the NFT contains. Important to understand that NFTs can have similar, different or identical values or no value at all. This is determined by the creator based on the purpose and utility of their NFT(s) for a particular use case. NFT value can be assigned/determined by the creator/owner/admin/markets for single NFT or multiple NFTs, as it relates to the use case.
NFT creators can choose to assign a certain unique value to an NFT or varying values to multiple NFTs, based on the embedded digital and utility encoded programmatically to the NFT(s). Creators can also assign specific utility/function for their NFT/NFTs which are to be offered/used within a given blockchain supported ecosystem. NFT — driven services are running on top of a particular layer 1 or layer 2 of the selected blockchain and could be integrated with other applications run on servers which are chain agnostic.
Since the goal is not provide a technical conspectus for NFTs but instead to further introduce the reader to the immense variety of use cases where NFTs can be a highly effective, measurable and transparent tools for provenance, proof of ownership, transference of value, creation of value, direct distribution of content, social identity, securitization, fractionalization and more..
Let’s briefly address broadly possible NFT use cases that build on ERC20, ERC 721 and ERC 1155 token standards. It’s important to mention that the ERC 1155 Standard developed by Enjin combines the best of both token ERC20 and ERC721 standards.
* The table provides a brief overview of the diverse range of segments that can be driven with NFT based technology and services.
This brief overview is intended to show the groundbreaking versatility of NFTs, capable of supporting an immense array of P2P, B2B, B2C, P2C, P2E, M2E, G2C… use cases while providing immutability, trackability, improved security, improved efficiencies, unique experiences, digital assets value creation, creation of new markets, creation of identity, easier to transact, cost-effective distribution, direct content delivery and much more..
Use Case 1. Delivering Digital Content Directly to End-User
Digital advertisers, marketers, brands and businesses now realize that NFTs can directly address captive or mass-market audiences and create immediate brand recognition with the target audience by delivering digital content directly to the end-user, customer or participant. While also offering for anyone to become directly involved in whatever service, brand or product the creator wishes to promote or share.
Use Case 2. Royalties
Royalties can be easily secured with NFTs on the blockchain, every time an NFT is sold a percentage of that sale is programmatically sent to the creator’s wallet. This ensures that creators benefit from their projects & creatives, affording creators the ability to offer their fans or communities rewards — added benefits that NFTs can support.
Want to take this opportunity to mention that MEDIA EYE NFT Portal was explicitly created to support a highly diverse range of NFT use-cases, helping drive NFT adoption, creator economy, ecommerce, Web2/3.0, content distribution and much more. To learn more about what we call the METAGATE, opening the door to the Metaverse, Creator Economy, Web 3.0 and Digital Asset Value Creation please follow the MetaDeck presentation.