Known as the “Daughter of Disaster,” the image depicted several memes on the internet. In April 2021, the original photo was sold for around R $ 2.6 million! With so many republishing of digital content on the web, how can an image that illustrates so many memes on the internet be sold at this price?
The answer is less complicated than it seems: thanks to the NFT certificate.
It is a code that a digital part obtains to ensure that it is unique. The simplicity ends here and we need to delve deeper into the term. Check!
What is NFT or non-fungible token?
This acronym can be freely translated as “non-fungible token”. And yes, there is an explanation for that last word.
Fungible is every part that has an equivalence. He has a value that allows him to be compared to another. In other words, it is not exclusive.
For example, clothes. You can buy a model that can be replicated, if not already.
The non-fungibles are therefore exclusive. Works of art, for example. A painting by Leonardo da Vinci is unique, no matter how many reproductions you can make. They will never be the original.
These coins therefore have more expensive, if not incalculable, values.
The image of the young girl in front of the burning house has many reproductions, but none are original. The NFT certificate guarantees exactly that, by giving unique codes to GIFs, photos, digital arts, among others.
But how can this be guaranteed? This is the next topic!
How does NFT work?
You have read that NTF is a digital certificate. It uses blockchain security, the same as that used in cryptocurrencies.
This mechanism ensures that something is exclusive and original and can be used in photos, Gifs, images, podcasts, e-books, games, etc.
Blockchain is a system that allows tracking of anything that takes your security, i.e. sending and receiving certain information over the internet, widely used in cryptocurrencies. And it is precisely this system that allows the enhancement of these pieces.
But, as you may know, cryptocurrencies are fungible. For those who have NFT, the blockchain exactly guarantees the non-fungible nature of something by tracking their transactions.
How did this technology come about?
Perhaps the interest in the NFT started with the sale of the work called Daily: the first 5,000 days, by artist Mike Winkelmann, for $ 69 million!
From then on, people started to get more involved in NFT, but the emergence of this technology predates this sale.
NTF appeared in 2012, with the presentation of colorful pieces. It was supposed to be virtual currency, but it didn’t progress. Since then, this certificate has not been discussed much, until recently the sale of the work of Winkelmann and the “Girl’s Disaster” took place, which we talked about at the beginning of the article.
In addition to these two, even the first tweet made on the social network was put up for sale by its owner, Jack Dorsey, co-founder of Twitter. Your NFT sold for $ 2.5 million!
There is also the case of Nyan cat, the famous 8-bit cat meme sold for half a million dollars.
How does the buying and selling of NFT go?
Everything here starts to get more intriguing.
Every transaction involving NFT is carried out using Blockchain technology. And you already understood that, right?
As you have seen, blockchain involves a complex chain of data that guarantees the authenticity of something. They are easily accessible and, for this very reason, make them almost impossible to defraud.
This ensures that Copyright of someone about a digital work are not defrauded.
But ok, and how do you buy or sell something with NFT?
Everything happens in the Ethereum chain, the same way as in cryptocurrencies. However, before you even trade your property, you must issue an NFT.
And, for that, you have to make a good investment and find out if, in fact, it is worthwhile to tie this certificate to the work.
This issue is produced on specialized platforms such as Rarible. There you save your work and download the original file.
You then define a value and describe its main characteristics. After that you pay for the show – be careful not to be afraid, as you read a short while ago the amounts can be very high. All this with the Ethereum digital wallet.
To sell the works that already have the NFT certificate, auctions are organized and, as is the case with this type of marketing, the one that gives the most value wins.
But what can you put in an NFT?
How can brands use NFT in their business?
Now that you have seen what NFT is and how it works, you might be wondering how your business can benefit from this technology.
The first benefit is the ability to add your brand awareness strategy, i.e. recognizing your brand for a specific job, so to speak.
Just one part of the business with an NFT certificate can be of value as a means of measuring how well people recognize your brand – a metric that is constantly debated when it comes to digital commerce.
In addition, when a digital component has an NFT certificate, it means that there is a certain demand for it. Placing a work as unique creates a feeling of rarity, which contributes to increasing the valuation of the object.
Finally, the NFT guarantees the copyright in the creation, protecting it from unauthorized and unauthorized copies. Such a certificate can be as profitable as a registered trademark, because it presents a certificate of originality.
NFT: a trend that’s here to stay or a fad?
This question will only be answered in the future, but it is possible to assess that NFT is something that is reshaping the digital market.
Keeping an eye on this trend is necessary, mainly because it can bring new things to your digital strategies.
This whole discussion is only in its early stages and the anticipation of this debate and discussion can be critical to your business.
And, if you want to know how, why not find out more about digital marketing? Take the time to read this content and find out how NFT can fit in!