Non-fungible tokens…Heard of ‘em? They’re kind of all over the place right now, but what the heck are they? Well, let’s give ya the crash course from Medium.
What are NFTs?
Non-fungible tokens (NFTs) are a type of cryptographic token that represents a unique digital asset. It is based on blockchain technology, like cryptocurrencies. Basically, while both are are blockchain-verified, cryptocurrency is treated like dollar bills (non-unique), and NFTs are treated like pieces of art (one of a kind). NFTs, though, are not mutually interchangeable.
Who Cares?
Well, there have been some crazy NFT sales out there that have the attention of investors piqued. For brand marketers, the rise of NFTs brings a whole world of new marketing possibilities. Let’s get into some of the big NFT marketing ideas:
- Creating Scarcity: DLC for video games and in-app purchases are familiar examples. NFTs make that DLC more exclusive or collectible. We’re seeing this on a commercial scale with the console wars and system-exclusive games. Creating digital goods to be rare is where NFTs come to play.
- Rethinking Monetization: Today, most digital content is being monetized via platforms, like Facebook, podcasts, or Hulu, as ad middleman. NFTs shift the ownership back to creators. As Apple continues to shake up traditional digital advertising, NFTs might be the new remedy.
- Tokenizing Access: Gated content, experiences, and services can all be individually made NFTs. For brands, that means a new way to think about access management, again without third parties.
What’s Next?
Dunno! There are several industries like retail and entertainment most interested in NFTs. Experimentation and new media models are happening now, but one of the biggest roadblocks is going to be that NFTs are in a wild West as far as regulations.
Check out Medium’s full piece for examples of brands already breaking into NFTs!
