How NFTs are creating a patronage economy for creators and collectors

I’m not a fan of the term “token”, I prefer cryptocurrency. However, NFTs are cryptocurrencies with more fundamental properties than Bitcoin and Ethereum, making them more interesting than standard digital currencies like Bitcoin and Ether. NFTs are “tokens” of a decentralized protocol, rather than just a “coin”. This means that holders of NFTs are expected to behave as active participants of the network, which will be critical for the network to become sustainable.

The creation of new digital tokens and digital collectibles, known as NFTs, has been a hot topic in the blockchain world and beyond for some time.

The rise of the Internet has dramatically changed how we consume media. Suddenly, we are able to access whatever we want, whenever we want. And thanks to some of our favorite digital platforms like Spotify, Netflix, iTunes, and the like, we can now easily drown ourselves in media, without the need for physical media at all.. Read more about companies using non fungible tokens and let us know what you think.

The latest craze is the ability to symbolize a piece of art that anyone can safely sell online. If you are not yet familiar with the NFT: it is a unique realization of distributed ledger technology. This object can be, for example, digital or physical. B. a painting, a regular ticket, a piece of real estate, a game item, a digital artwork, etc. NFTs connected to the blockchain network allow buyers to trace the origin of a collectible and prove its authenticity. On the other hand, artists can prove the ownership of their works. Without getting into technical concepts, let’s try to understand an example of an NFT use case that can help us understand its purpose and, more importantly, its value.

Single item – common theme NFT

Since everyone from cartoonists to musicians use unplayable tokens, it becomes difficult to understand how they are actually used. Let’s be clear: The NFTs represent something unique. It could be a plane ticket, a celebrity’s autograph, a digital painting, in-game items, Monaliza, your time, or any other valuable item that someone is willing to buy for a certain price. All the user has to do is connect the artwork/object to a blockchain network that supports NFT standards, such as Ethereum, Binance Smart Chain and Polygon. For beginners or people without technical knowledge, there are marketplaces like OpenSea, BakerySwap and Rarible that allow them to link their art to the blockchain. Once integrated, users can offer their items for auction or sell them directly. Superare provides a way to sell directly, while Auctionity allows artists to offer their works/objects for auction. Now that we know that NFTs are indistinguishable and unique, let’s find out where they are used.

NFTs for digital artists and creatives

Blockchain technology has become an interesting prospect for digital creators as it allows them to tokenize a digital image, blog post, song, rap, logo or any other valuable digital work in the form of an NFT.  Creators generally receive nothing for their work. However, with the introduction of the FTT, artists will be able to demonstrate that they own their works and earn an income from them.

Market– Nifty Footbridge

The growing interest in NFTs has led to the emergence of various marketplaces where digital creators can sell their works. The most popular is Nifty Gateway, a combination of blockchain technology and collectible images. The platform gained notoriety in the NFT industry after Beeple, a digital artist, sold his digital collage for over $69 million. Nifty is owned by the famous Winklevoss brothers and allows artists to upload their artwork to the Nifty Gateway Omnibus wallet using the MetaMask wallet. After downloading, customers can make an offer to buy the item in question. The platform charges a commission of 5% of the sale amount, plus 30 cents to cover transaction costs.

Luxury and Lifestyle

NFTs are no longer just digitally colored, they are a unique luxury lifestyle product. Not just any real merchandise, but limited edition luxury items such as watches, handbags, cosmetics, purses, etc. The ephemeral nature of these assets makes them exclusive and unique. Instead of assigning a price to a luxury item, market demand determines its NMT value. The luxury industry also uses the same rarity logic to give an object value. Moreover, with NFT, companies or manufacturers no longer have to worry about copies of luxury goods, as users can verify their authenticity and ownership at any time.

Market– Bling

Bling, launched by Trace Network at Polygon, is the world’s first NFT marketplace for limited edition luxury and lifestyle products. Through the platform, users can link their wallets to buy listed NFTs. After purchasing an NFT, customers can submit claims for the physical product in question. The manufacturer then ships it to the customer, wherever they are. Since the Bling Network uses Polygon to create NFTs, items listed on the platform can be traced to their respective companies.

Collectibles

Cryptocurrencies began 2017 with a gathering frenzy. However, the bear market of 2018 and 2019 has slowed their pace. NFTs are a unique case for collectibles, as they allow the user to confirm ownership and uniqueness of an object. A trading card, a video clip or a photo are all NFT collectibles. This new dimension of capital equipment has opened the floodgates to different platforms. NBA Top Shot, for example, has already sold $100 million worth of basketball records. With NFT in mind, baseball card maker Topps is also planning to enter the market.

Marketplace– Ebay

Ebay, a well-known marketplace for e-commerce, has recently entered the blockchain space, offering its users the ability to trade NFTs. The company has invested heavily in the infrastructure of collectibles, such as. B. trading cards and other items that users may view before purchasing. Since launching less than two weeks ago, eBay has only created an NFT marketplace for a small group of verified sellers.

Concluding remarks

As you probably already know, the possibilities of using the NFT are only limited by our imagination. There is no doubt that NFEs have great potential to play a key role in creating an ideal economy for artists and collectors. Although the concept is already outdated, the last few months have been full of twists and turns for designers and collectors alike. While the collectibles market has brought a lot of money to the blockchain industry, it is largely fueled by speculation. There are more speculators in the market than collectors. So it remains to be seen whether this craze will continue or fade away in the near future.

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In the past year, blockchains and the NFTs (Non-fungible Tokens) that are powered by them have received a lot of attention from the mainstream media. However, this is not the first time the blockchain has been used to create unique digital assets. In the 80s and 90s, a company called DigiCash (which later became VeriSign) issued the first NFTs, which were unique digital assets with value that could be transferred between user accounts and even outside of the blockchain.. Read more about non fungible tokens stocks and let us know what you think.

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