NFTs and the opportunity for brands

While it’s currently fashionable to dismiss NFTs, let’s not forget this technology will become ingrained in all aspects of our digital lives going forward, writes Jonathon Miller.

Non-fungible tokens (NFTs) are a radical solution to the problems creators face when building and protecting their brands in the digital world. Whereas value created from individual contributions used to be appropriated by singular, centralised, for-profit entities in their ring-fenced domains, NFTs enable content creators to enjoy the form of their contributions.

While the noise around NFTs may have died down in the market downturn, the innovation of the technology remains and cannot be dismissed. To clarify, NFTs are blockchain-based digital records of ownership and authenticity associated with a piece of media. While often used to tokenise things such as art and collectibles, an NFT is more than a multimedia file; it is a public record of historic information associated with that media. Music, in-game items, membership to exclusive events: basically, any medium where individuals want to assert rights of digital ownership – something previously thought impossible – can now be realised by an NFT. For the first time, scarcity can exist in the digital realm.

Although conceptually simple, profile pictures (PFPs) perfectly demonstrate the raw potential of NFTs. Digital artists and content creators can monetise creativity by selling directly to interested buyers, rather than being forced through an intermediary gallery or broker. The artist, the original buyer and any secondary buyers, can share in the success of the NFT collection by contributing to the surrounding community, including sharing artists’ creations on social media, increasing the value of the original work. These actions create a virtuous cycle that incentivises further positive actions; original creators can earn a steady income by adding a fee to any subsequent sales of their work. For brands, this offers whole new levels of cooperation between individuals and companies in digital landscapes, facilitating a much deeper engagement and understanding of their communities.

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