The digital world is expanding and millennials are looking towards smart contracts and blockchain development services to shape the future. The same is prevalent in the digital world which we are seeing in the name of NFTs. After so much howl and hustle for the legitimacy of digital currency, now NFT creation services are on a hot streak. Famous personalities have joined the Caravan too and now NFTs have descended from Silicon Valley to the internet personalities as well. Tech industry is finding NFTs as a great way to own digital artwork, whereas the non-tech world is finding the NFTs as a good investment tool. The made by NFT Development Companies have risen eight times from the previous quarter to $10.7 billion in 2021.
What is NFT?
Let’s meet Samantha, an artwork creator.
Samantha was also unaware or may possess some raw knowledge of NFTs. She is participating in an online exhibition for showing some digital artwork and getting popular or for earning some monetary rewards. As the exhibition is online, she was also cautious, about saving her digital artwork from being copied or replicated. Jack came up with a solution for NFT.
Jack gave an idea for creating NFTS for all her paintings as NFT is secure, trustworthy, and non-interchangeable, and the perfect way to prove ownership over digital artwork. Samantha had no idea what NFT is? So, let’s understand what NFT is.
Blockchain NFT development converts digital artwork into the copyrighted product by defining a unique digital signature over the product, that also proves ownership over the digital assets and the product which can be bought and sold for real-world money, cryptocurrency, or any other asset.
What are Fungible and Non-fungible Tokens?
Well, non-fungible tokens are not interchangeable, whereas fungible tokens are changeable. Also, non-fungible tokens cannot be broken into units, whereas fungible tokens can be broken into smaller units for making similar values.
A 100-dollar bill can be broken into two 50-dollar notes or five 20-dollar bills because it is fungible. Whereas digital artwork is non-fungible, which cannot be copied or broken into smaller units by NFT management companies. Even if, it is copied, the replica stays unauthentic.
Each NFT contains a piece of specific information, like who owns the digital asset and who is the seller, which makes it distinct and verifiable. There is hardly any chance of forgery because an owner contains virtual copyright over the product.
In the real-world example, the NBA is auctioning the top shots of the match. The concept of selling memorabilia is widely popular with NFTs. With NFTs, fans can purchase the original moments of top shots. People can buy, keep them in collections or resell the items for earning a profit, while the creator also earns the royalty, whenever the NFT exchanges hands.
Still with us? Like you, Samantha was also curious how does NFTs actually work?
NFT basically creates Blockchain-based digital certificates for your digital artwork or digital collectibles including, music, painting, or any other kind of digital artwork. The underlying technologies being used in NFTS are the same as cryptocurrency such as blockchain, whereas the programming languages are Python, C++. NFTs basically depend on Ethereum or a similar independent blockchain that follows the same structure as a distributed ledger for storing information.
However, NFT development services are quite different from these cryptocurrency minting.
Bitcoin and ethereum are fungible tokes they can be traded with each other for the same value, whereas NFT is when traded, you may get an entirely different value.
General NFT Terms to Know About
Whenever there is any discussion of NFT, you need to have basic knowledge about these terms:
Assets are the items that you want to create a token for. These items could be song, artwork, collection, and photography, etc. You can tokenize the assets that you legally own. Tokenizing someone else’s work is copyright infringement.
2. NFT Platform
There are different NFT platforms where you can utilize their templates for minting your own NFTs, given that you have some programming experience. Ethereum, Binance Smart Chain, Solana, etc. are some blockchains that offer smart contracts for minting their NFTs. NFT marketplaces such as OpenSea work with these blockchains.
3. Minting Fee
The minting process requires a fee, which is paid in their own cryptocurrency. Every NFT platform works with some currency to charge a fee for minting. In Ethereum, the minting fee is known as “Gas Fee”.
The authenticity and the ownership of digital art make the people more assured of selling the copyrighted item and stopping piracy. This virtual world is now open for everyone and people with less experience in this domain can also hop in.
Where is NFT Used?
NFT is now quite popular in collectibles, artwork, games, etc. These tokens are also used for ensuring the historical record of ownership for luxury items. NFT can be sold, bought, and traded in marketplaces such as Nifty Gateway and OpenSea.
After knowing such information, Samantha agrees to create NFTs for her artworks and give a certain value to her work while protecting the authentic work. She needs to approach a reliable blockchain Development Company for smart contract development and NFT creation. Also, it will increase overall sales making the exhibition a complete success.
Now with the popularity, people are paying thousands of dollars for NFT, also celebrities made the hype more real with the on and off news of launching their own NFTs. They are even hiring Blockchain developers to create their own NFT platform including all the required features.
NFTs are Gaining Popularity Among Celebrities Too
Following the international glamour world, the media industry and popular sports companies like NBA are looking to rake up huge profits through NFTs. The media and sports industry is launching digital memorabilia using non-fungible tokens. The technology devised from blockchain development services is now an amazing medium to capitalize their fund and earn thousands of dollars through this growing trend.
For capitalizing the funds or proving the ownership of some piece of digital work, NFTs are very much liked by celebrities such as Snoop Dog, Emily Ratajkowski & Martha Stewart. Also, many corporate giants like Ant Group, Tencent, JD.com, Nvidia have entered the NFT market with a bang.
Indian Megastar Amitabh Bachhan created a media sensation with the announcement to launch an NFT collection of the autographed posture of his movies, whereas Dabangg actor Salman Khan created excitement among fans through the tweet that he will launch his own NFT platform.
Till date, NFT is a stranger to the entertainment, and sports industry, but within a few years, this is going to be the platform for generating huge revenues. Indian actor Ayaan Agnihotri told that within 8 days, their platform sold 80 million crypto-tokens known as bolly coins that can be used to purchase his NFTs.
NFT is a growing trend among the media and sports industry. These tokens are auctioned over different marketplaces. Looking at the growing market, investors find NFT a great option for earning money and making a long-term profit.
However, the cost to develop an NFT marketplace is the main question today and in short, it depends on your exact requirements so feel free to Request A Quote from SemiDot Infotech and will get back to you with an exact estimation on time and cost.
In this article, we will try to find, why NFTs are proving to be a craze among celebrities.
Celebs Who Joined the NFT Bandwagon
NFTs have not only grabbed the attention of common people but it has succeeded to convince even celebrities to use them. Get to know below about the celebrities who launched their NFTs:
1. NBA Top Shot
NBA top shot is an exchange that sells NFTs of top shots and NBA highlights. There is more than $230 million spent on Top Shots, where the most expensive highlights was of Lebron James, sold for over $200,000.
2. DJ Steve Aoki
A true genre-bender and Grammy-nominated DJ Steve Aoki joined NFT movement with the digital artist Maciej Kuciara. The latest NFT in its niche “Neon Future by Steve Aoki x Maciej Kuciara” has given NFT market more traction. Aoki gave five new tracks and gave hope for the NFT to guide the future music industry with the help of collectible assets and experiences in digital wallets. Aoki collaborated with Antonio Tudisco, 3D visual artist and creative director for a piece, “Dream Catcher” that comes with physical copies that racked up more than $4.29 million.
Aoki also partnered with famous motivational guru Tom Bileus for launching the NFT set “Neon Future”.
3. Shawn Mendes
After the significant success of Mesut Ozil line with sales of more than $500,000, Shawn Mendes collaborated with Genies for selling unique wearables on the NFT marketplace OpenSea. Shawn Mendes made more than $600000 with the sale of NFTs which he donated to the foundation helping youngsters with innovative ideas.
Famous rapper Eminem shared “Shady Con”, the first NFT collection, which became a Digi festival. The track containing original instrument beats was released just before the limited edition festival. Eminem seems thankful to the collectible market for offering him a chance to recreate his collection assets.
5. Manish Malhotra
Famous Indian fashion designer, Manish Malhotra sold the NFTs of the latest digital sketches of his creations. The sketches were sold at $4000 per piece, where the website was owned by him, he auctioned some amazing bridal wear outfits in the price range of $2500 to $3000.
6. Dinesh Kartik
Cricketer Dinesh Kartik has set to auction a digital art reel of his “match-winning sixer on the last ball” of a thrilling match. The art reel of a sensational cricket match is converted to NFTs for sale starting bid price of 5 ethereum, somewhere around $20,000. The cricketer got this idea from the West where NBA starts selling the iconic moments and boosted sales. Also, there are many stories where people are approaching blockchain development services for either securing their assets or capitalizing them.
7. Vishal Malhotra
TV Actor Vishal Malhotra, collaborated with Ishita Banerjee, a famous artist for releasing the NFT tokens. Vishal is the first Indian artist to do so. The NFT auctions were the most popular characters of the artist in Bollywood for 25 years. The NFTs were sold at 2.5ETH, where the animated piece is combined with some background music for effects with Vishal’s voice. Within 11 seconds of his launch, the first bid was received within 45 minutes of starting the auction. Also, buyers had a meet and greet session with Vishal as a reward.
8. Sunny Leone
Sunny Leone also joined the NFT race of global celebrities such as Ellen Degeneres and Paris Hilton. Leone has also invested in NFT platform development at the right time. The actress partnered with a startup from Silicon Valley, Mintdropz. The tie-up is made for creating the website of her NFTs, where the actress plans to set her artwork on auction. The popular actress told, that crypto is the future and NFT is a splendid platform that allows expressing the art through unique tokens. Celebs are finding it the most viable option.
There is too much craze of NFTs and there is a lot to explore for NFT’s true potential. Before reckoning the advantages reaped out by celebrities, let’s understand what is NFT?
Why NFTs are favored by celebs aka advantages
The increase in the passion for learning also draws the limelight for the advantage of blockchain development services. NFT possess some strong capabilities such as uniqueness, indivisibility, transparency, and provenance. Let’s see other underlying advantages that encourage celebrities.
Controlling the ownership of artwork is very essential on digital platforms. The most viable advantage is the ownership proof using the most reliable blockchain network, which stores the information in tokens. Recall that NFTs are indivisible tokens and therefore buyers need not worry about the fake ownership or piracy of the unique artwork. Alongside, being indivisible ownership cannot be distributed too while there is no concern of fake NFT. NFT Management Company finds it to be the most provoking reason to invest in the platform.
Few opponents say that one can take pictures of NFT and may offer them for some price or free. The statement is false, because you may have an image of NFT, but that does not make you the owner of that image. You can click the photo of some artwork by Pablo Picasso, but that does not make you the owner of the image. NFTs are the best way to secure the real asset through transforming the digital art into NFTs while completely changing the traditional norms of managing and verifying the ownership. You can also reap the advantage of easy transition of ownership of the asset using NFTs in the real world.
NFT Development Company works over blockchain for minting tokens. Blockchain is a chain of blocks where each block contains some unique information and is connected to the network. This ensures the uniqueness of tokens, where unique traits showcase the potential. Also, NFT owners can make a specific number of NFTs for creating the scarcity of the supply such as limited seats for a show.
In the case of launching tickets, the creator can create replicas of the ticket while each ticket is unique. This may increase the cost of creating an NFT marketplace but the rewards are enough enticing for investment. Also, the NFTs are immutable so there is always a great security assurance. The immutable nature of NFTs makes them a huge ban on modification, replacement, and removal of the information. This way, authenticity is the greatest viable advantage of NFTs.
Being immutable does not bind NFT to be the lazy dog. An NFT can be easily traded in the market with a wide number of trading options. In clear words, NFT solves the problem of walled gardens in the marketing or gaming industry. Many popular games offer in-game assets, where players need to purchase them for improvement of the gaming experience. In-games assets are only available over the gaming environment and users cannot use them anywhere. Also, the in-game collectibles may go wasted when the game is out of trend.
With NFTs, the game developers can issue in-game NFTs which can be held in digital wallets. Subsequently, the players can use the in-game assets outside of the game and can also generate profit by selling them. The ownership transfer of the NFTs is done using smart contracts, which is initiated upon the fulfillment of specific conditions between seller and buyer.
NFTs create a great set of economic opportunities for content creators. Earlier the NFTs were focused on the fundamental traits. Today, NFTs have found a wide range of applications for digital content. The fragmented industry gave a space for the feasibility of NFTs, but this also could not give a due reference earning for the content creator. Content creators more often than not face this issue, where the platforms devour their profits and potential earning.
E.g. A digital artist when publishing his artwork on social media, the platform earns money through ads for the fan base of an artist. An artist gets the exposure for the marketing over the platform, but also makes money for due platforms in parallel. It does not get to earn money from the benefits of the platform. The non-fungible token can make an entirely new ecosystem for earning opportunities. The creator economy is focused on assisting the content creators to avoid the requirement of ownership transfer to platforms. The content creator and publicize the content where the ownership is integrated into the content. As the creator sells the content the fund goes to the creator. When a new owner publicizes the content and sells the content, the creator receives the royalties. It is possible by setting up the smart contract when developing NFT.
In the creator economy, the original creator receives a royalty for each token resale, because the metadata contains the creator’s identity.
The most important pro of NFT is inclusive growth. Not everybody is interested in the digital economy nor does everyone understand how these tokens work. NFT support inclusive growth by bringing all content creators from one ecosystem, where participants can introduce new avenues for growth.
- First, NFT creator receives the true worth of their creation.
- Creators can directly interact with the customers.
- Buyers can offer different kinds of assets for liquidity using NFT.
E.g., NFTs can represent the fractional ownership of real-world assets such as property. This enables multiple buyers to have a stake in property as per the specific condition.
The strange and massive popularity of NFTs is detailed further by the list of great advantages associated with the tokens. These non-fungible tokens are great for making profits while saving the creation from the forge. In the eCommerce industry, NFTs are yet to make an impact however they will penetrate in that domain too. The advantages of NFT could be the selling point for different industries, whereas it also creates a favorable scenario to earn huge profits. Celebrities, artists & sportspeople are opting for NFTs for authenticating their work and ensuring the royalty earnings when the token changes hands.
NFTs are now not limited to a digital diaspora. It has descended to real-world assets where it can give points of assurance and a new stream of revenue. NFT is the new market trend and we believe the right kind of business strategy can definitely benefit your existing business and create a new stream of revenue for your business.