An Intro to Non-Fungible Tokens (NFTs)

www.ceek.com
Francis Ngannou NFT (Bosslogic)

What is an NFT?

A non-fungible token — or NFT — is a unique digital asset secured by blockchain technology. Currently, most NFTs are created on the Ethereum blockchain using the ERC-721 token standard. Regardless of what blockchain it is designed on, all NFTs exhibit similar properties:

  • Uniqueness — No two are interchangeable
  • Non Divisibility — They cannot be divided into smaller pieces
  • Transferrable — They can be bought, sold, or transferred to another party
  • Traceable — Ownership and activity can easily be traced on the blockchain
www.ceek.io

The economics of scarcity

To understand why NFTs are valuable, it first helps to ask the question: why is art valuable?

www.ceek.io

The Benefits of NFTs

NFTs not only improve on previous methods of tracking and securing real world items, but also open the doors for new, digital markets with infinite possibilities.

Reducing Counterfeits

Counterfeiting is a serious challenge in both the real and digital worlds. In fact, it’s estimated that the effects of counterfeiting could cost the global economy $2.3 trillion by 2022. NFTs are easily traceable and cannot be counterfeited unless an entire blockchain network is compromised. Owners of these digital assets can then rest assured with the knowledge that their purchases are secured and cannot be altered.

Efficiency

By creating peer-to-peer marketplaces, NFTs eliminate intermediaries and third-parties, providing better market efficiency, more transparency, and cheaper transacting for users. This isn’t just in artwork, but for the supply chain as well. NFTs can be used to track and trace any item across the supply chain, which helps producers identify bottlenecks and track the entire supply chain from start to finish.

Direct connection between creator and audience

Instead of selling art and digital goods through an agent, artists of all kinds can interact directly with audiences who are then able to feel more connected to the artist. This creates a more intimate, authentic relationship between artist and audience. Using NFTs to engage an audience has become more commonplace in the past year. In one recent example, Tesla founder Elon Musk considered selling his techno song about NFTs as an NFT before ultimately deciding against it.

www.ceek.io

NFT use cases

While art has been one of the first successful use cases for NFTs, this technology has a much wider range of potential applications.

Tracking real world assets

Any real world asset, from a car to the Mona Lisa, can theoretically be tracked using NFT technology. These assets are tokenized and used in conjunction with tamper-proof QR codes or other physical identifiers to link between the digital and real worlds. Fashion brands like Louis Vuitton are already working on blockchain and NFT solutions to secure products along their supply chain and reduce counterfeiting along the way.

Digital Personas

For gaming enthusiasts, digital personas have become just as important as in the real world. Imaging in a VR world like CEEK, our users (Ceekers) can express themselves through the use of clothing, skins, accessories and more. And NFTs can help. This is true for unique artist experiences that can be memorialized in a similar fashion as well. Historically, there was no way to ensure exclusivity of items in digital worlds while also tracking these goods. NFTs allow users to purchase unique goods to enhance their digital persona, and at the same time, blockchain technology ensures these purchases are legitimate and secure.

Gaming

Collectables have already made the jump to the digital realm. NFT successes like CryptoKitties and NBA TopShot have proven the market for blockchain-based digital collectibles will thrive in the coming years. But NFTs have their place in the already established eSports and digital gaming industry as well. As the gaming industry continues to grow, companies are looking for more ways to monetize their platforms. One way to do this is through in-game purchases which enhance gameplay for users. This idea is already being implemented by the popular game Minecraft, where users are rewarded with NFTs in-game which can be used to unlock new game features.

www.ceek.io

Where the digital world and real world come together

Non-fungible tokens are just another way that digital technology is improving upon real world functionality. This is especially relevant in the world of virtual reality, where these two worlds often become one. Utilizing virtual reality to merge these two worlds together, CEEK is proving that NFTs will bring added value to the virtual reality space, and increase user experience and adoption along the way.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
CEEK

CEEK

Premium Destination for Virtual Reality Music Concerts, Entertainment & Education 1st blockchain marketplace for premium VR Experiences & Interactions.