But how does this impact the business world?
On the face of things, NFTs might just appear as an artwork project, but there’s actually a lot more to the technology than what meets the eye. Artwork was just the best method of testing a means of virtual authenticity and a way of offering exclusive memberships to specific groups of people.
The initial hype behind NFTs was fruitful enough on its own, allowing rappers and musicians to sell 1 million copies of their tracks in less than a minute. The technology has the power to turn pretty much anything into a collectible, by making it exclusive and offering a way to authenticate it.
With each transaction being minted on the blockchain, it opens the door for a whole host of business use cases, and the world is very quickly opening its eyes to those opportunities. Want to prove to people that your expensive watch isn’t fake? Show them your authenticated blockchain transaction that proves it is. Lost your receipt for an expensive item? You’ve got virtual proof of your purchase that you can access with a few clicks.
But the benefits to NFT technology in business aren’t just ones that serve the end-user, they’re also a beacon of hope to creatives too. People who previously had to release work under the supervision of agents are now able to release content on their own terms – and make a lot of money doing it. Creators are also able to earn a royalty percentage on secondary market sales, generating them passive income.
There’s even more money in it for the holders too, because collections are finding ways to introduce passive income streams that are woven into the utilities of the project. They might release a game that earns users new NFTs that they can sell for real money, or introduce a method of earning a token with real economic value. These are all tried and tested mechanics that have been given new life with NFT technology, making financial gain more accessible for everyone involved.