NFT – QU’EST-CE QUE LES NFT ?
Sometimes considered as a digital ownership certification or even the next speculative bubble that will soon implode, NFTs keep creating a craze on the web and are increasingly establishing themselves in a lot of fields, including the digital.
NFT – Définition
NFT, or more precisely “Non-Fungible Token”, refers to a digital token, which cannot be interchanged. The main quality of NFT is therefore its uniqueness, certified through a blockchain whose role is to validate the authenticity of the token. This token is therefore considered as a digital possession, which can be transferred from one user to another, all within the decentralized and secure system which is the blockchain. The blockchain to prevent the digital falsification of a given property, will thus allow all metadata (signature, author, date, etc.) relating to the exchange to be collectively verified, saved and recorded.
Because NFT is almost impossible to counterfeit or imitate, thereby becomes a unique digital good. This is what fundamentally differentiates it from other cryptocurrencies, which can be interchanged and whose age does not affect the value. NFT comes in many forms: image, video, 3D representation, audio, etc. NFTs are generally found on the Ethereum Blockchain, having ether as currency (1 ether is worth around 3,600€ and this value fluctuates depending on the currency rate price). Many people perceive NFT as a revolution because it has been able to update and bring to light the digital value of a creation.
An NFT works practically like a work of art. Its rarity, its anteriority, its creator, all have a great impact on its final value. This is the reason why it tends to overrun arts, fashion, video games and more. In video games for instance, an NFT can be an accessory able to provide more functionality to a character, or simply to customize his online avatar. According to Brands, NFT can be illustrated as a brand signature, certifying the originality of the recently awarded artwork or product. In digital technology in general, it is also possible to obtain software in the form of NFT that unlocks many operating properties. This non-exhaustive table immediately gives an idea of all the possibilities which NFTs can offered.
Some types of NFTs
NFTs, by not having the same use, can be grouped into a few categories:
This word, unpopular a few months ago, has become extremely popular since Mark Zuckerberg’s statement on the change of identity of his company from Facebook to Meta, in order to better establish itself in the digital universe. A metaverse represents a digital space offering its owner the ability to personalize it endlessly. It could be fractions of web space, on websites, in an online video game. Metaverse, for example, allows brands to extend their digital advertising, for instance through fractions of space purchased on video games or other websites.
Collectibles can be illustrated as a set of diverse and varied tokens which can be collected, resold, etc. One of the most popular NFTs collectibles include cryptokitties (virtual cards of a cats selection, all different from each other), announcing the beginning of the NFT in 2017.
Trading cards game NFTs
These are unique NFT cards, allowing a player to unlock or obtain additional assets, from whose he is the sole holder. The real advantage about these cards lays upon the fact that they can be used on different games belonging to a blockchain, still with the same features and privileges. A great example of trading card game is Sorare game, a Fantasy Football game, or Gods Unchained on Ethereum blockchain.
As stated previously, artistic NFTs are a main characteristic of more or less recognized artists works. In fact, those NFTs have the highest sales. For instance, Beeple collection was sold for $ 69.3 million. The power of NFTs in the artistic field lies above creative property rights. An artist is no longer afraid of seeing his works illegally reproduced, thanks to the Blockchain technology. This has the effect of re-boosting the value of artistic productions and making them unique and exclusive again. In art, this is a real way to boost this market and make it even more successful.
Security and utility tokens
Security token is purely a digital asset, a real estate asset or an investment proof in a company. As for utility tokens, it is much more a matter of making possible the offer of specific services and / or access to its owners. It can be a domain name for example, like Unstoppable Domains which gives the possibility of having a domain name in .crypto.
What can NFTs bring to Brands?
Brands, especially those in the luxury field, are very often victims of counterfeiting. The concept of NFT is therefore presented as a way of restoring the brand image by highlighting the whole creation cycle and certifying the authenticity of each product. As an example, we could integrate a QR code on a packaging, which the consumer would only have to scan. He would thus have directly under his very eyes the certificate as a proof of the originality of the article he just purchased. This is a great way to reassure the user about their purchase. This technology is already used by the LVMH group through AURA platform, which provides its customers with evidence of the originality of sold products. Nike’s cryptokicks go further by creating a generation of virtual sneakers, incorporating Augmented Reality.
NFT is as a result, a great valuable tool for brands. It makes possible the extention of customer experience on web, exactly as it is as well an argument of reassurance to consumers on the items they purchase. A brand through NFTs thus presents itself to its customers as transparent, which promotes a righteous climate of trust and brand loyalty. NFT sales are already estimated at more than 10 billion dollars according to DappRadar, a number set to increase in the coming years.