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In 2021, with the record Christie’s sale for $69.3 million, Beeple's EVERYDAYS: THE FIRST 5000 DAYS set the ball rolling for unique digital art. As the world comes to pace with Non-fungible tokens (NFTs), artists, musicians, and other creators have been expeditiously authenticating their virtual works, which are quickly taking over the digital market.
Digital entrepreneurs and enthusiasts can’t stop raving about NFTs becoming the “next big thing” in terms of tracking ownership of digital assets. Let’s dive into what exactly NFTs are and whether marketing agencies can use them to better track virtual assets on the blockchain.
In financial terms, a fungible asset is a unit that can be mutually interchanged, like money. For example, a hundred rupee can be exchanged for two Rs. 50 notes, and change nothing monetarily. By contrast, a non-fungible asset is one that is so unique that it can’t be exchanged for something else. Vincent Van Gogh’s Starry Night, the artwork might be duplicated or sold as prints, but the original is irreplaceable.
Similarly, an NFT is the “original” version of a digital asset. Possession of an NFT acts as a certificate of ownership, which is logged on the blockchain.
Now, the blockchain ledger is impossible to ersatz as it is maintained by a worldwide network of computer systems. NFTs can even benefit artists, via smart contracts, to receive royalties for any future sales of the token.
"Just setting up my twttr" was Jack Dorsey’s first ever tweet, which he sold as a NFT for close to $3 million. The winning bidder owned the NFT like a virtual autograph. NFTs have brought artists a unique opportunity to prove true digital ownership of their work.
Earlier, without an online domain, it was increasingly difficult to prove ownership of online assets, for example videos, images and music. Because NFTs need to be added to the blockchain in the same manner that powers cryptocurrency after creation, the authenticity over digital materials is now legit. Something that did not previously exist.
NFTs never lead to any debate over the original artist since they embed the creator of said digital assets into the blockchain ledger permanently
With the development still in the nascent stages, it’ll be premature to determine how the NFT boom will impact marketing agencies or any other business. Having said that, the early bird gets the worm, so its quick adopters and savvy innovators are determined to make it click and churn profit.
Here are a few ways that marketing agencies can use to remain ahead of the curve, begin using NFTs to better serve their clients and themselves :
Simply put a NFT is a digital file that represents legitimised ownership of a real-life object or asset. So it makes sense that one of the best ways for a digital agency to utilise a NFT is through agency agreements or contracts.
Using a NFT as the contract marker creates a digital asset that ties the contract to the creator. Not only does this make digital contracts more official, but it shows that the agency is at the forefront of cutting-edge technology.
For agencies working on retainer models, a NFT can act as a licence to perform business with you. A client would need to purchase the right to work with you in the form of an NFT.
The client still needs to pay for monthly services, but they will forever own that right and could even sell that licence, in the form of a referral. Even better, the sale of that retainer licence nets you a royalty fee.
As your brand grows bigger, the more that retainer NFT is worth.
A NFT can also be used by agencies to represent their created static, video, GIFs, a set of files or even a website that has been delivered to the client. Indeed a great way to officially mark a project as completed and delivered, especially as it will be permanently recorded in the blockchain.
One of the most prominent advantages of using NFTs is their ability to be sold and transferred as digital art. Some artists even use blockchain and smart contracts to create the artwork itself, allowing NFTs to act as an artistic medium.
Buying and selling NFTs through the blockchain allows digital assets to be traded more efficiently while decreasing the likelihood of fraud.
While much is undecided about where NFTs will lead us ultimately, what is clear is that the technology is new and exciting and has taken the world by storm!
As a business owner, the decision to be an early adopter and remain at the forefront of blockchain technology lies with you. But as things stand, NFTs are here to stay and form a crucial part of the marketing strategy for many businesses. And any agency that identifies ways to innovate in the NFT space will be revered as thought leaders.