What is an NFT? (Explained)


So if you've been breathing
for the past couple of months, you've probably heard of– NFTs. NFTs. NFTs. For those scratching
your heads, I got you. [CLEARING THROAT] An NFT
is a Non-Fungible Token. All right, y'all. Thanks for watching. So I should probably
explain what that is. A non-fungible
token is basically a digital file that comes with
a certificate of authenticity. NFTs are like what
baseball cards used to be, a personalized
digital collectible. Now, fungible is a word
that often shows up in legalese, so allow me
to break it down for you. Something fungible can be
exchanged for something else of the same kind. Think of cash. Let's say you borrow
$20 from a friend. When you pay that friend
back, you can pay them back with four $5 bills
or two $10 bills or whatever other
configuration gets you to that $20 amount, right? Because cash is fungible, a.k.a. interchangeable. The reason an NFT is
a non-fungible token is because due to the
blockchain technology it's secured to, it has
a little extra space that allows for more information to
be stored to make it original, non-fungible.

That extra information is you. Proof of your digital ownership. A ledger that says
this is mine, and it's been mine since this
date, which again, means it isn't interchangeable. NFTs are collectible, unique. And in a digital
world of copies, this allows you to know
who actually now owns that clip of that flying
dog you love so much. NFTs should raise your
eyebrows for two words. Cha-ching! That's right. That ownership
token can be applied to prove purchase of almost
any digital asset in a series of digital marketplaces.

And people have paid a lot. Huge notable purchases have
included this meme, this tweet, and this sandwich. While collectibles
and special editions are definitely nothing
new, hey, remember Pogs? The reason these collectibles
are in the news now is because one, people are paying
b-b-b-big money, and two, it's now easier than ever to
access the platforms needed to actually sell and
buy these pieces, with marketplaces like Rarible
finally making an uprise. The NFT balloon is growing,
and while a good percentage of that air may be
hype, it also includes some of the possibilities. This is a taco. That is a taco dipped
in digital sauce. This is Taco Bell's NFT that
they put online for purchase to benefit their
scholarship program and almost immediately sold out.

But that's not the
cool part for you. As a marketer, the cool part
is what they're actually doing, consumer interaction, driving
insane brand awareness, all while supporting
a good cause, which is something that is pretty
important to about 83% of millennials out there, if you
care about that kind of thing. So if we're being really
real, NFTs are booming, and people are still
learning a lot about them. They started off as a
really cool way for artists to make direct money
by selling their work without the
middleman and now has ballooned into the
place where we are now. It also may not be the
best for the environment. NFTs have a dirty secret. Non-fungible tokens share
a harmful characteristic with cryptocurrencies in that
they both use a lot of energy. Greenhouse gas emissions
are tied to NFTs. While we've definitely
seen some crazy examples, if you're in marketing,
when it comes to your brand, think of this as a way
to get more followers and beef up your social media
with cool new promotions. For example, create limited
memorabilia to celebrate special milestones.

Then use them in your
marketing campaigns around those special milestones. You can give them away to the
first x number of customers that sign up or even
auction them off as standalone products. They are way better
served on that than making a quick
$3 million on that GIF you made of yourself,
even though it's a great GIF. That's all the info. Do with it what you will. Until next time, remember,
it all starts with a trend. [MUSIC PLAYING] .

As found on YouTube

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