What Is an NFT? Are NFTs Still Important? Maximist Limited Specilaises in Web3 Digital Marketing, and We Are Here to Answer These Questions for You.
Everyone’s talking about NFTs these days. From the water cooler to prime-time radio, NFTs have made a splash in a wide range of spaces over the past couple of years.
But why is everyone obsessed with these Non-Fungible Tokens, and why should you care about them? Perhaps most importantly, is this a fad that’s on its way out, or a growing trend that looks set to stay? Maximist is here to answer all of your questions.
What Is an NFT?
NFT stands for Non-Fungible Token. So we’re talking about a digital asset that’s unique, and cannot be replicated. That digital asset can represent real-world property or rights, and can be traded in exactly the same way our day-to-day goods can be.
The key difference with an NFT is its security, and that’s all down to the blockchain. NFTs exist on the blockchain, and make the exchange of real-world goods more efficient and secure than standard transactions.
By using an NFT for trading purposes rather than its real-world counterpart, the probability of fraud decreases dramatically.
To represent assets
As we have already touched on, one of the primary functions of an NFT is to represent digitally a real-world asset. That asset could be almost anything: a car, a contract, an event ticket, a piece of art… you get the idea.
The key difference here is that every NFT is unique.
NFTs as Collectibles
Followers of the early cryptomarket will be familiar with this concept – think digital artwork, cards, and tokens. Some of these collectibles sell for a lot of money, and certain assets have fetched millions in the past couple of years.
A notable example of the value of these collectibles can be found on Twitter, with a tokenised representation of the first-ever tweet selling for over $2.9 million.
Exactly where the market for these collectible NFTs is heading is unclear, but this is not the most important concept to understand. The simple trading of NFTs as collectible digital assets overlooks the most important matter; it is the technology and security surrounding NFTs that’s important, not the NFT and its value alone.
A ‘digital passport’
To reiterate the unique nature of an NFT, we’ll compare them to cryptocurrencies. Although many lump NFTs and Bitcoin in together as one broad entity, there is a clear distinction between the two.
Bitcoin is a cryptocurrency, and cryptocurrencies are fungible just like physical coins. One might have several coins of the same value, equalling a greater overall value when combined. One Bitcoin may be equal in value to another Bitcoin, for example.
NFTs are all completely unique and irreplaceable. To emphasise that once more, every single NFT is different to all others. As digital representations of assets, they are essentially passports and can be distinguished each and every time from one another. Ownership details make them easily identifiable, with the history of that ownership being stored on the blockchain.
Why Should I Care about NFTs?
Whether or not you are interested in investing in NFTs, their relevance should not be underestimated. Their existence and purpose serves to underline one of the central functions of Web3 as a whole: to increase the security and privacy of online transactions.
Even some of the strongest detractors of NFTs and Web3 overall have conceded it’s unlikely this trend will stop anytime soon. Granted, it’s not exactly revolutionary to create digital representations of assets – that idea has been around for years – but it’s the added security offered by the blockchain that sets them apart from what’s come before. By providing a secure, encrypted space for NFTs to sit on, there is no need for agents and intermediaries to manage those assets in the real world.
All in all, that means that NFTs essentially put asset control back in the hands of the individual. Whoever owns these assets has the ability to manage their exchange.
Maximist Limited – Web3 Digital Marketing
If you would like to learn more about NFTs, or are interested in NFT marketing yourself, get in touch with Maximist Limited. We specialise in Web3 digital marketing and are one of the only NFT marketing agencies currently in the UK.
We specialise in Web3 digital marketing, working with customers who both have an understanding already of the Web3 space, and those who don’t. By educating those familiar with Web2 marketing about the importance of Web3 and how we can look to get ahead on it, we have already helped people up and down the UK to increase their reach online.
You can fill out one of our online contact forms to get in touch, or call us on 0800 059 0116.
