In recent years, non-fungible tokens have been one of the most interesting new developments in the cryptocurrency market. NFTs have been adopted by a spectrum of industries from digital gaming to merchandise and utilities, including some unexpected industries such as electoral democracy.
What is a Non-Fungible Token
Non-fungible tokens are an especially attractive option for game designers who want to create true scarcity. Imagine that you’re playing Hearthstone and you find a card that is rare or hard to obtain. It’s exciting because if by chance, you happen upon it in the game, your collection is strengthened considerably. This type of experience is possible with NFTs which aren’t limited in number like crypto coins are.
Benefits of Using NFTs
NFTs are revolutionizing the entertainment industry by changing the way that content is created, consumed, and shared with others. They give power back to artists who can now sell their intellectual property in a variety of ways. These digital objects will also help diversify traditional distribution channels. NFTs are more than just a new method of word-of-mouth marketing. In terms of integration with the entertainment industry, they solve a number of problems that have existed for years. Consider the television advertising economy – traditionally, advertisers pay to be reflected in prime time advertising slots on popular shows. The problem is that other companies would simply buy these slots and there would be no benefit to the show producers or the audience since they would still be promoting competing brands. The cost per engagement caused this disconnect between audience and copyright holders which resulted in lost advertising revenue.
Concerns with NFT
New forms of entertainment such as Netflix and Hulu are quickly developing into some of the most popular forms of media. Imogen Jones, head of partnerships for Imogen Jones, says: There are many benefits to using Next-Generation Technologies such as RFID, blockchain, IoT and NFTs. These technologies will help alleviate consumer concerns associated with piracy and counterfeiting. A nightclub could use an NFT wallet platform to create smart contracts; the house would then send tokens automatically after each entertainment event and the club owner would only receive a percentage of profits that wasn’t already paid out previously.
Promising to revolutionize the entertainment industry, NFTs are entering at both ends of the supply chain. Primarily, they are proving to be very successful with gamers and gaming companies who are exploring these new ways to deliver content. Players can stream games live for others to play with them, while developers can find an enthusiastic audience without high production costs. Since the inception of NFTs, many platforms have launched including: æternity and TRON. However, some of these assets are already available in one form or another. Thus, it’s important for new companies to launch with something that is attractive to the masses and will attract growth investors. That is where most NFT teams should end up even if they only think about within-network adoption from the start.
We will see the full power of NFT when digital content is created in such a way that it can be turned into nanofibers and take form. With the right team, the future of entertainment might just shine brighter than we know.