Artists, musicians, and others who want to authenticate their digital works are increasingly using non-fungible tokens (NFTs).
Gary Vaynerchuk, a digital entrepreneur, and media outlet lauds NFTs as the “next big thing” for tracking digital asset ownership.
Signature W Studio’s blog explores NFTs and how marketing agencies can use them for better tracking virtual assets on the Blockchain.
What is an NFT and how do they work?
A fungible asset, economically speaking, is an item that can be exchanged for another unit, such as money. You could, for example, exchange a $20 bill for two $10 bills, and you would not be less than before. A non-fungible asset, on the other hand, is an asset that can’t be traded for another.
Examples of such artworks include Andy Warhol’s Campbell’s Soup Cans and Vincent Van Gogh’s Starry Night. These artworks can be reproduced or sold in prints, but there’s only one original.
An NFT can be considered the “original” digital asset. The blockchain records the ownership certificate that an NFT is in possession of.
Because it is kept by thousands of computers around the world, the blockchain ledger cannot be forged. Smart contracts can be included in NFTs that allow artists to collect royalties on future sales.
NFTs: Why are they so popular?
Many are puzzled by headlines claiming first-ever tweets were “tokenized” and sold at $2.5 million. Artists now have a unique opportunity to prove digital ownership through NFTs.
It is becoming increasingly difficult to prove ownership for online assets such as images, music, and videos, other than an online domain. NFTs must be created, minted, and added to the Blockchain in the same manner that powers cryptocurrency. This gives digital materials a greater sense of authenticity than those that didn’t exist previously.
Also, the NFT permanently embeds the creator of the digital assets in the blockchain ledger. This ensures that there is no question as to who created them.
What can digital marketing agencies do with NFTs?
It is still too early to predict how the NFT marketplace might impact Phoenix marketing agencies or any other business. But, innovators and early adopters are determined to make it successful and profitable.
These are just a few of the ways marketing agencies in Miami can stay ahead of the curve, and use NFTs to better serve their clients.
An NFT can be described as a digital file that is used to identify ownership of an actual object or asset. It makes sense that agency agreements or contracts are the best way for a digital agency to use an NFT.
An NFT is used as a contract marker to create a digital asset that ties a contract to its creator. This makes digital contracts more formal and shows agency leadership in cutting-edge technology.
Retainer Tokens and Licenses
NFT is a license to do business in the case of agencies that operate on retainer models. Similar to how an NFL stadium or seating licenses work. An NFT is a way for clients to purchase the right of working with you.
Although the client will still need to pay monthly fees, they will always be entitled to that right. They can also sell the license as a referral. You may also earn a royalty if you sell the retainer license.
A retainer NFT worth more is the bigger your brand.
Evidence of delivery
Agency can use an NFT to signify a set of files or a video created, as well as a website delivered to the client. This is a great way for a project to be marked as complete and delivered. It will also be permanently noted in the blockchain.
Selling digital assets
NFTs can be used to sell and transfer digital art. This is one of the biggest advantages. NFTs can be used as artistic mediums by some artists who use smart contracts and blockchain to create their artwork.
The blockchain makes it possible to trade digital assets more efficiently and reduces the risk of fraud by allowing you to buy and sell NFTs.
NFTs: Where can we take them?
Although much remains to be determined about the future of NFTs, one thing is certain: The world has been swept away by this new and exciting technology.
As a business owner, you can decide to adopt blockchain technology early and stay ahead of the curve.