Last year, the explosion of NFTs in the digital market put the term “non-fungible tokens” on the map.
NFTs, which are unique digital assets that live on the blockchain, started to gain momentum in the digital art world, but quickly spread to luxury fashion, music, video games. , social media and sports. Pop culture became saturated with NFT throughout 2021, from x-ray images of William Shatner’s tooth to a digital replica of Twitter founder Jack Dorsey’s first tweet and many memes kept as NFTs.
Enter 2022 and NFTs are becoming even more common. Samsung, for example, has unveiled plans to bring NFT markets to its smart TVs ahead of the 2022 Consumer Electronics Show (CES).
Erick Calderon, Founder and CEO of the NFT Art Blocks Platform, presented a Beginner’s Guide to NFTs at CES 2022 on Wednesday. The session, titled “NFTs, WTF,” was moderated by Lesley Silverman, Head of Digital Assets at United Talent Agency. Paris Hilton was scheduled for the session, but was unable to attend.
Below are some key takeaways for marketers in the emerging NFT space.
What is the definition of an NFT?
NFT stands for ‘non-fungible token,’ which is guaranteed as a one-of-a-kind digital asset that lives on the blockchain. The first NFTs were created in 2017 before the term even existed. Soon after, crypto-kitties and crypto-sharks coined the term in the marketplace and standardized Smart Contracts, a program that runs on the Ethereum blockchain that looks like a “computer-managed paper contract.” , Calderon said.
“I think if there is just one takeaway, for the first time in history we are able to prove that we own a digital asset,” he added.
What is a simple metaphor for describing NFTs in the real world?
“If you owe me $ 10, I don’t care what $ 10 bills you give me, so the $ 1 bill is fungible,” Calderon said. “An NFT, or something non-fungible, is something I would care if you gave me that specific dollar bill because that specific dollar bill is unique to others.
“A non-fungible token is something that is guaranteed using blockchain technology to be 100% unique in a provable way, that there is just no argument. The blockchain will tell you and you can prove it, ”he added.
How does the blockchain fit into this?
Larva Labs’ CryptoPunks project, which creates 24×24 pixel algorithm-generated artistic images, pioneered the use of blockchain technology to power NFTs.
CryptoPunks are uniquely generated characters dressed as male and female “punks”. In the beginning, anyone on the Ethereum blockchain could own a CryptoPunk. Now people have to buy, bid or offer punks for sale in the marketplace, which runs on the blockchain.
“CryptoPunks on a centralized server would have been a cute and fun art project that would have been maintained within a private ecosystem,” Calderon said. “Instead, they let you claim those cute little pictures in a public ledger. And this public ledger allows me to prove to anyone, without anyone’s permission, that I own this unique asset.
How is the NFT community?
Calderon called the very enthusiastic NFT community both “your best friend” and “your biggest enemy,” citing the social platform Discord as the community’s gathering place. He remembered joining Discord to find an alien CryptoPunk, which he was never able to locate. Instead, Calderon was introduced to the NFT community.
Art Blocks, a platform focused on on-demand programmable content stored on the Ethereum blockchain, connects with its users on Discord. Users can give feedback, which can be “raw” and “instant,” Calderon said.
“Anyone in the world can read that comment you put in the comment box,” he added. “It’s a whole new paradigm for organizing communities, although that’s a really bitter comment. But every time someone does that, it creates that transparency on user comments and the feelings of that community. And that is why the NFT space has been able to develop.
(This article first appeared on CampaignLive.com)