What is an NFT?
NFT stands for non-fungible token, meaning it cannot be changed into something else. These certificates ensure your artwork is not able to be copied or stolen, as it secures your assets online by creating a unique digital signature on an asset. An NFT can be bought and sold for real money, cryptocurrency, or another NFT. Each NFT is distinct and verifiable, ensuring the ownership and authenticity of the certificate.
NFTs are not interchangeable, or non-fungible, and each represents a unique asset that is owned by a specific person. Think of an NFT as like a piece of artwork in a museum: it cannot be made into genuine copies and cannot be bought in bulk. If copied, it is still not the original, authentic artwork.
How does an NFT work?
NFTs create a blockchain digital certificate for your digital asset, usually something like music, art, or games, but can be other items. NFTs can be traded for other unique items, but cannot be made into money like cryptocurrency. However, items with NFT certificates can be bought, but it ensures the buyer that the item is indeed authentic and therefore eliminates fraud.
NFTs on social media
Having artwork or music verified through NFTs ensures that the items viewed are authentic, allowing many more artists to gain exposure on social media without the fear that their work will be copied. This also helps artists sell their work online, as the NFTs prove the authenticity of their work, making buyers feel more confident in their purchases.
Instagram & Facebook
Mark Zuckerberg, CEO of Meta, announced in early May that he will test run NFTs on Instagram and then later this year on Facebook. The first test of NFTs will be to a limited number of creators and collectors who will be able to link their accounts to a third-party digital wallet. The first wallets allowable on the site will be MetaMask, Rainbow, and Trust Wallet, with no fees associated with posting collectible NFTs.
Zuckerberg believes in the potential of communities being able to sell creative work, but the rollout is limited to create trust in the public, as NFTs are still relatively new (think22).
The Future with NFTs
Now is the time to investigate how having NFTs may benefit your business, especially if you are an artist or have unique items that you have created. You can protect your copyright, while still getting exposure and building your customer base.
Glossary
Blockchain – a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network
Cryptocurrency – a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority.
Digital signatures – a mathematical technique used to validate the authenticity and integrity of a message, software or digital document
Digital wallet – a financial transaction application that runs on mobile devices
Non-fungible token (NFT) – cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other.
