Once outliers in the technology world, crypto and blockchain technology are making their way into the mainstream.
More traditional industries are adopting NFT technologies, creating more trust in the public.
The advancements in crypto and blockchain technology are not fads, but real solutions to issues that plague the digital world. The latest iteration of blockchain- and crypto-based ideas is the NFT.
A non-fungible token, or NFT, is a digital asset that can be bought and sold digitally. The NFT has made a big splash in the online world, especially for art, and it’s gaining more momentum each day. More and more brands and influencers are leveraging NFTs for marketing to earn more revenue.
What does the world of NFTs mean for the future of influencer marketing and social media?
What is an NFT?
NFTs are abstract and many people find them confusing, but they’re just a digital version of a physical collectible. If you’ve ever purchased collectible art or a baseball card, it’s the same thing – NFTs only exist in the virtual world.
NFTs have value, whether tangible or sentimental, and can be bought, sold, or traded. They’re digital assets that you can own.
Among the concerns surrounding NFTs for many people is what stops someone from merely copying an NFT? After all, a lot of the images are widely available, such as the “Disaster Girl Meme.”
That’s where “non-fungible” comes in. This means that the asset is unique and can’t be replaced with something else. A digital token is interchangeable with any other digital token, just like a $100 bill is interchangeable with any other $100 bill. The NFT has a unique identifier, which verifies its authenticity and contributes to its value.
As far as paying for an image that’s widely available elsewhere, that’s similar to paying for an original piece of limited-edition art instead of a print or reproduction. Everyone can have a “Mona Lisa” reproduction to hang in their homes, but only one original exists in the world.
Also like work from a famous artist, the digital collectible is a unique investment that relies on perceived value. Markets change and shift, which can lead to the asset increasing or decreasing in value.
NFTs are backed by the Ethereum blockchain, which allows ownership information to be stored on a decentralized ledger. Each block contains information about the asset and transaction, as well as the block that comes before it on the chain, so it’s virtually impossible to alter. The authenticity of the NFT can be verified quickly.
The possibilities are endless in the digital space. NFTs allow creators to produce and sell art, music, books, videos, and more – they’re a gamechanger for digital content creation.
For digital marketing and content creators, NFTs make it possible to engage with customers on social media, give them valuable assets as prizes for giveaways, and more.
How do NFTs Impact Influencers?
Influencers are likely to be the biggest champions of NFTs. These digital assets revolutionize the creator economy and offer a way for influencers to monetize their following in multiple ways and increase engagement on their marketing platforms.
While influencers can make a lot of money, the means are limited. They rely on brand partnerships and collaborations to make money. NFTs change that by providing an entirely new way to generate revenue and boost marketing strategy.
There are already several influencers leveraging NFTs, including David Hoffman, a travel blogger who used NFTs to sell memorable moments from a trip to India. Followers bid and purchased NFTs of videos and iconic moments.
NFTs also offer potential for future sales. They can be designed to allow royalties, so the creator gets a share of future sales when their asset is sold on the NFT marketplaces.
Naturally, the potential for lifestyle, fashion, and art influencers is virtually limitless. These influencers can sell exclusive content like digital art with the security of NFT protecting its authenticity and value. Gaming influencers are also getting involved and selling in-game weapons or artifacts as NFTs.
NFTs can increase engagement as a prize. Influencers can run a campaign and offer NFTs as the prize, which has plenty of value for followers. NFTs also make great rewards for collaboration posts and user-generated content contests, especially if they feature an iconic moment, exclusive content, or a digital collectible.
The World of NFTs is the Future
NFTs are not just the newest fad – they’re digital assets that exist only in the digital world, but provide real-world value. We’re becoming more digitally focused, and NFTs take a popular pastime, investment opportunity, and status symbol into the virtual environment.
We like physical things we can hold and touch, but digital assets represent the future. From unique digital art to a virtual baseball card to an iconic moment, NFTs provide brands and influencers a unique opportunity to leverage online content and intellectual property.