why nfts matter

5 min

They can make you money

I don’t really need to explain this one, but let me just say this: Digital goods will be the preferred good in the future. They’ve got easy-to-track data and no delivery/product needed. We’re spending more and more time online as a species and it’s not going to stop. More and more time online will accelerate the preference to sell digitally. Not to mention — the popularity of digital goods is rising. Whether it’s profile pics or wearables, people love to express identity online. The preference to sell digital goods is especially apparent for Rights + IP holders. The blockchain will benefit the world of rights and IP as an indisputable source of truth.

EXAMPLE

Going back about a decade, record labels existed to protect copyrights of artists signed under them, and had lawyers to prove that X artist created a song, but now, there are no lawyers needed. The blockchain is a source of truth that cannot be argued with, protecting copyrights of artists, technologists, thinkers, writers, and innovators.

They can make you money

EXAMPLE

They create loyalty among your community

NFTs are inherently community-fostering. People love collecting — they always have, and they always will. People bond with other people over things that they collect — whether it’s records by a certain artist, classic cars, or Beanie Babies. NFTs are similar in this way. They indicate which “club” you’re in, and, as it extends to brands, who you support and who you’re a fan of. There are countless Discords that have been established for the holders of certain NFTs to join and chat with one another, and holders are usually rewarded over time just for holding the token in their wallet. If this doesn’t keep you hooked, what can?

EXAMPLE

BAYC (Bored Ape Yacht Club) holders get access to lavish events and a monthly coffee subscription. A Bored Ape is a status symbol as much as it is an all-access pass. Most recently, they launched their own metaverse, “Otherside”, where BAYC holders can buy digital land in a custom universe.

NFTs have unlocked an entirely new type of community loyalty. Because NFTs are digital ownership, project communities will begin to feel like they own a part of the project or brand (and in some ways actually do). And when you’re a partial owner of something, your loyalty to it increases.

NFT knowledge will keep you relevant

It’s going to get very difficult to remain relevant without engaging with NFTs and, subsequently, Web3. History can prove it: When websites first emerged, brands that didn’t adhere to this new wave of technology didn’t make it (we miss you, Blockbuster). When Web2 was born and social media became mainstream, brands who didn’t adopt a social media strategy or use it at all, are currently facing a slow death. It will be the same with Web3.

EXAMPLE

Remember that family-owned used-car shop that used to be the neighborhood favorite? The one where the owner laughed when asked if he’d be getting a website back in 2002? What happened? The car shop went out of business because they failed to see the value in having and maintaining a digital presence.

They are birthing a new revolution

NFTs are changing the future of employment, healthcare, and education, due to their ability to track records and assets. In our virtual future, digital objects have real value and physical objects can own a digital identity. There is no going back.

EXAMPLE

Even if you remove the future from the equation for a moment, NFTs are currently revolutionizing sectors of our culture such as art, sports and videogames. Thousands of artists are eating multiple meals a day for the first time in their lives. Fans can own some of their favorite moments in sports history. People are playing games to earn money that they can exchange for wearables or trade for cold, hard cash. These industries haven’t even begun to see the impact NFT technology will bring them as it continues to rapidly progress.

‍London Trade Art says it best when they say that “blockchain not only democratizes individual ability to buy NFTs, it also democratizes access to new markets for all artists, regardless of location.”

They transform ownership economy

Not only do digital assets have the capability of having their own identity, they can be owned by individual wallets. We can also transparently track this ownership through time. When you think about it from a copyright and royalties perspective, it just makes sense. An original creator will always be indisputable—along with every owner since. This is a huge win for creators everywhere.

EXAMPLE

If two artists, a producer, and a videographer/editor collaborate on a commercial, their names and roles in the making of the commercial can be forever recorded on the blockchain by incorporating the credits into the smart contract. This is a novel and accessible way to store information inside digital assets.

The utility is too good

We, for the first time as the human race, have a technologically sound way to attach a unique identity for any digital asset. Blockchain technology gives digital assets undisputable origins, properties, and other pieces of metadata — all collected in a single smart contract associated with each NFT.

EXAMPLE

You used to create GIF icons on Iconator.com. It was early evidence of your passion for graphic design. When Iconator.com shut down for good, where did those icons go? Are they floating somewhere in the ether? Do they exist at all anymore? They don’t even appear via wayback machine. If the icons were minted as non-fungible tokens, they would have left a permanent footprint on the web. (Yes — even in 10,000 years. Blockchain technology uses thousands of computers to verify each transaction, rendering it impossible to destroy. All anyone will ever need is a device with an internet connection to find it).