Many people talk about NFTs, but very few people really know what the term means and the potential it represents for the future.
NFT = Non-fungible token (meaning: it is unique and can’t be replaced). Sounds difficult, right? But actually, it just means that it is a digital asset that represents real-world objects such as art, music, in-game items and videos. These items are bought and sold online, frequently with cryptocurrency (Forbes, 2021). In other words, it is a digital file with identity and ownership verified based on the blockchain system, that is, a system impossible to be hacked because it is developed through crypto mathematics.
That said, giving a lesson of “NFTs for “geeks””, this innovative term that gained traction in 2021 is just a form of authentic art or crypto-collectibles that allows artists to create, sell, trade and control the creative artwork with the main purpose to produce something that is authentic, real and impossible to copy.
Between just us, it probably wasn’t love at first sight, but it is undoubtedly a relationship that promises great expectations for the future. For the most hesitant minds, it is a relationship without a future. However, for the most innovative and courageous, it is a new union that represents endless opportunities and exceptional scope.
It was a relationship that was born out of a worldwide digital transformation. It is no coincidence that this technology experienced a “boom” during the pandemic, at a time when artists were forced to find alternative ways and creative solutions to sell their art. This forced the creative industries to embrace the digital as the only open window for goods acquisition and social interaction.
In fact, there is an influx of money moving through the crypto space and the availability of artwork as an NFT. How did this happen? Collectors are increasingly realizing that the digital world is full of amazingly exciting opportunities. In fact, in addition to identity and product ownership security, NFTs unlock enormous ways to gain traction and generate new revenue streams for artists (Medium, 2021).
Speaking of numbers, according to Statista, NFTs sold as artwork generated an income of about 12.9 million US dollars in 2020. Therefore, if, for some, it is a hopeless relationship, for others, NFTs represent new forms of business and profitability.
Imagine, if there was a party with prizes to celebrate the best NFT strategies in the creative industries. Who would be the nominees?
We imagined and made a list of the top nominees that, in our perspective, are really rocking the NFT world in the creative industries.
Here are the nominees of the year:
During our research, we read an article that said, “NFTs are a mirror of how we think about art in the age of digital reproduction.” This is the best definition we have found to this day.
It is true that the NFT market is still in its infancy period, which is the perfect time for investors and innovative minds to bet big on this new technology. However, there is already some evidence that NFTs are here to stay. The sharp and steady growth of NFTs shows that it is only a matter of time before they catch up and surpass the multi-billion traditional art market.
So, what will the role of NFTs be in the future of the creative industries? In addition to profitability, NFTs are actually a real opportunity for many digital artists, who have not recognized and valued yet. NFTs represent countless opportunities, and their true potential has yet to be fully realized.
We often say that now is a good time to be alive, and that couldn’t be more true! NFTs are likely just the beginning of a fascinating journey into a fully connected digital future.
Stay tuned, because #TheFUTUREisNOW!
