NFTs explained… let’s just get started.
One of the hottest trends and buzz words you may have been hearing a lot lately is “NFT”. A few analysts predict the NFT market could surpass $1 billion by the end of 2021.
The founder of Twitter, Jack Dorsey, actually sold his first tweet for over $2.9 million.
just setting up my twttr
— jack (@jack) March 21, 2006
Someone actually owns his first tweet at a hefty price tag of almost $3 million.
Recently someone reached out to Kyros and wanted us to help them with building an NFT marketplace (still in the process of concept) but this got us thinking that we should explain to the masses what an NFT actually is, how it works and what you should know.
Non-fungible tokens (NFTs) have actually been around since early 2012 when some of the first Bitcoin Colored Coins came on the scene.
NFTs are used to represent basically any virtual type of real or intangible item such as:
- Video Footage
- Collectibles (think about the trading card craze)
- Tokenized real world assets ranging from real estate to cars
- Access for conferences, sports games or entertainment
NFTs are digital assets that represent a large range of unique items that are both tangible and intangible, such as sports cards, sports cars, real estate and art.
A key benefit to an NFT versus a physical collectible item is that the NFT contains very unique information that makes it very distinct from any other NFT and easily verifiable. This makes the creation of fake collectibles useless because each item can be traced back to the original issuer.
Think about a very rare Michael Jordan rookie basketball card. Without an NFT, fake copies can be made and sold at premiums by fooling people they are real. You can get it verified by an expert but even experts are fooled. With an NFT, you can trace this super rare rookie card back to the original issuer to prove it is the real deal.
Actual use cases for NFTs we’ve seen so far.
So far in 2021, we have seen some really cool use cases for NFTs. Some of these ideas are only the start of using NFTs in business. We are seeing people like Mark Cuban discuss issuing tickets for the Dallas Mavericks in NFT format.
Besides the obvious ideas like selling your digital art, we wanted to point out these two use cases for NFTs and get the ideas started.
Mark Cuban & Sports & Entertainment Venues
Sports and Entertainment Venues can really benefit from using NFTs by minting tickets and offering them to consumers. It’s actually a really good way to prevent fraud or ticket scalping because you will know the ticket is real and unique. Mark Cuban with the Dallas Mavericks is actually looking at this idea.
He also started selling his own NFTs for the Dallas Mavericks as you can see in his tweet below.
https://t.co/BgZjNxptcv now supports @nbatopshot ! Check out my NFTs, my @nbatopshot moments and sign up to show off your collections ! https://t.co/RSQxzlsX9Z The https://t.co/BgZjNxptcv way to show off your NFTs and @nbatopshot moments !
— Mark Cuban (@mcuban) April 29, 2021
Gary Vaynerchuk & Conferences and Events
A really cool idea for selling NFTs recently was executed by Gary Vaynerchuk. Basically he created a site called VeeFriends and sold digital art in “cards” to people. These cards were access / tickets to his upcoming conference called VeeCon.
— Gary Vaynerchuk (@garyvee) May 11, 2021
Closing thoughts on NFTs
NFTs have been called a lot of things this year like “fad” or “craze” but they do hold some actual practical use. We agree that some of the early NFT sales could be very speculative, high in price and might drop in value in the future but they do have practical use.
Soon you will be able to buy an NFT for your favorite TV show like Friends. Large TV networks are already in the process of starting this.
About Kyros Digital
We are a software development company in Grand Rapids, Michigan. We have a true passion for problem solving by building useful software for the world. We are always learning and pushing ourselves to learn new tech stacks, trends and standards. We have won some awards, built some cool projects and are head down focused on our projects.