Today, a lot of Internet users have already heard something about NFT; some of them have already familiarized themselves with the basic information about a particular NFT platform. Of course, there are those users who have to get acquainted with the world of tokens and the digital market. In this article, we invite you to get to know the NFT sphere more closely, using the Sandmilk platform as an example.
In order to understand this topic better, you need to know what NFT is. It is very important because today, this area is only developing, and it is absolutely open not only to new creators and artists but also to new investments. There is no doubt that many of our readers have heard of the outstanding sales of digital images, but several factors are required to make such a deal true.
It is important to note that NFT platforms work with digital tokens. These tokens, unlike other tokens such as Bitcoin, are not fungible. In this case, each NFT has unique characteristics. It means that the tokens are associated with digital objects and make it possible to guarantee their authenticity and traceability.
Today, NFT is a profitable investment not only for individuals but also a great opportunity for companies. If your business has an NFT product, then it is a way to get people talking about your brand. You can easily modernize your image and arouse the interest of consumers while earning income from their initial sale and then royalties when they are sold on the secondary market. Some companies sell them as collectibles, for example, one famous chain of fast-food restaurants has created NFT for their flagship products. NFT platforms will definitely change the world of business, it is a question of time.
Business areas that successfully operate in the NFT market
In general, one of the advantages of NFT is that it can be integrated into any business. There are even the most unexpected solutions, such as the one we described above. However, some sectors have already managed to show brilliant results. There are several sectors here:
- Video games;
It is absolutely logical that the NFT sphere has found a place in the world of art and culture. In this way, users can authenticate virtual works and secure their sales. Tokens have also conquered the world of video games. Developers usually sell various video game merchandise to their players on NFT platforms.
Recently, a huge number of companies in the gastronomy sector have also begun to present NFT tokens. The first to enter the digital market were luxury companies, ones, which work with expensive alcohol and jewelry.
The modernity of this area is not an obstacle to the use of NFT by companies, regardless of their size and field of activity. Moreover, various platforms, like Sandmilk, make it easy to publish and distribute your tokens. Your business deserves to be known to the world as modern and progressive.
As you can see, in today’s world, companies can add value to their brands by offering virtual products or services. Companies are already selling them in enthusiast or collector markets. Even more, they provide new revenue opportunities without having to produce physical goods by controlling transaction fees.
There is nothing surprising that some big companies are already active in the NFT market, such as Fox Corp, which has raised $100 million by launching a campaign to inspire NFT content creators.
Of course, like cryptocurrencies, NFTs also suffer from a bad image. If these shortcomings are overcome (official recognition of cryptocurrencies, development of less energy-intensive proofs of stake, etc.), this brief analysis of this new market suggests that the publication and commercialization of NFTs could potentially become a new tool in business management and even, in some sectors, a strategic tool (development of new markets).
What is the main difference between NFT and cryptocurrency?
NFT is usually constructed using the same type of programming as cryptocurrencies, such as bitcoin and Ethereum, but it has a number of differences.
The main difference between NFT and the classic cryptocurrency is that the classic cryptocurrency, like physical money, is interchangeable. As you can understand, cryptocurrency has the same value: one US dollar will always cost as much as another US dollar, so the value of one bitcoin will be the same as another bitcoin. If we are talking about NFT, it is important to mention that one NFT cannot be replaced by another. It can be compared with the fact that the painting by Van Gogh cannot be replaced by a painting by Salvador Dali.
Who guarantees the originality of an NFT?
Usually, in the fine arts, the originality of the painting can be confirmed by art criticism and the ownership, which means the relevant document. In the digital world, the case of NFT ownership and originality of the digital image is confirmed by the presence of the corresponding NFT.
As we already mentioned, NFT exists in the digital space, namely in the blockchain. Thanks to the ability of blockchain technology to provide a unique signature and ownership of NFT, anyone can produce, buy and sell NFT without the need for art expertise to confirm the originality of digital art.
No wonder blockchain technology is compared to a ledger. This technology gives everyone the opportunity to see the originality of digital art.
Certainly, the NFT sphere today is a new world for many users. It should be noted that the right NFT platform can become a helpful tool for you and your business. Often this tool improves the image of the company and serves as an additional source of income. That is why many large companies are already actively developing in the NFT direction. In general, investing in virtual assets, under certain conditions, can bring profit ten times more than investing in physical objects. There is no doubt that the purchase of paintings by artists and NFT is a good investment, the price of which can only increase.