Every week, it appears that a new marketing trend emerges. NFTs are the newest craze. But what exactly are Non-Fungible Tokens (NFTs), and what do they have to do with marketing? We’ll address all of your questions regarding non-fungible tokens so you can appear knowledgeable and up to date at your next marketing meeting. We’ll also talk about if an NFT is a smart marketing strategy for your company.
What Exactly Are NFTs?
NFT is an abbreviation for non-fungible tokens. We realize that doesn’t truly answer the question. According to the technical description, it is a one-of-a-kind digital asset that may be purchased using bitcoin on the Ethereum blockchain. It is essentially a unique piece of crypto art.
However, we all know it doesn’t help much. Consider an NFT to be a type of digital collector’s item. It may be anything digital: a drawing, music, or anything else. For the time being, digital art is the most frequent non-fungible token.
You have ownership of a digital work if you own an NFT. However, this does not preclude someone else from downloading it. I realize it’s awkward. However, it is analogous to art collecting in this regard. For example, while someone may own the original Picasso, anybody may purchase a print of the same piece of artwork and put it in their house.
The term “non-fungible” refers to the fact that the token is unique and cannot be substituted with anything else. For example, if someone borrows your dog, they cannot just replace it with another dog or animal. A dollar, on the other hand, is fungible. Every dollar may simply be exchanged for another. Do you understand?
How Do NFTs Work?
At the most basic level, NFTs are a component of the Ethereum blockchain. Ethereum is a cryptocurrency similar to bitcoin in that it stores information about non-fungible tokens. The NFT is immutable on the blockchain.
The easiest way to conceive about them is to consider them as something to collect, similar to fine art, except that the collector’s goods are anything digital. (However, they can still be considered art.)
Nonfungible tokens are a (very profitable) way for digital artists to sell their work online. However, as we’ll see later in this essay, nonfungible tokens have at least one disadvantage.
The Environment And Nfts
Another fact about NFTs that you may not be aware of is that they are harmful to the environment. You may be wondering how digital art and the environment are connected. Non-fungible tokens, on the other hand, are at least partially responsible for the millions of tons of carbon dioxide emissions caused by the cryptocurrencies used to acquire and trade them, which contribute to global warming.
The “mining” aspect of bitcoin is sometimes ignored. Ethereum mining, on the other hand, consumes around 26.5 terawatt-hours of power every year. That is almost the same amount of energy consumed by the entire country of Ireland in a year.
Though mining energy might conceivably come from renewable sources in the future, there is no imminent strategy to make that happen. Meanwhile, non-fungible tokens are under fire for allegedly harming the environment.
Marketing And Nfts
While non-fungible tokens are the hottest issue in marketing right now, they aren’t always viable marketing approaches for most businesses. It might be a fun approach to increase social media engagement and generate viral news stories, and it makes sense for firms with a strong presence on social media and in pop culture.
However, like with every other trend, the excitement around non-fungible tokens may fade rapidly. After all, not everyone, like Jack Dorsey, can sell a tweet for millions of dollars. If you want to join in on the NFT fun, call ThatWare immediately to explore some ideas!