An alternative take on NFTs

Written by Mihir Vaja, Front-End Developer and Motion Designer

At this point we’ve all heard about NFTs in some form. You might have bought one on a whim or you’re repulsed by the idea that these JPEGs are selling for absurd amounts. For most it’s a bubble that doesn’t make any sense.

Based on what I’ve seen so far, I’d like to propose an alternative take on them.

What is an NFT?

Lets ignore the animal art and pixel characters and get nerdy.

NFTs are a technical form of digital asset that can be perceived as a record on the blockchain, which represents an object and its ownership. Ownership can be transferred, but only by the current owner. NFTs literally cannot be edited without accessing their owners wallet.

True digital ownership

Whilst it sounds simple this is a huge technical breakthrough. How many things do you truly own, with it being physically impossible to take from you against your will?

Unique uses of digital ownership

Here are some creative examples showing how brands and project owners have been innovating via digital ownership to adapt to their users needs and offer more value.

Damien Hirst: The Currency – Hirst created a unique collection of 10,000 artworks as NFTs backed by a physical counterpart. A few months after they were sold, he opened up a trade window where owners could send their token back to him (forfeiting ownership of the NFT) to claim the physical counterpiece. If you decided not to send it back then the physical artwork was destroyed making your NFT truly unique.

Nike: Cryptokicks – Nike maintained their brand identity of creating collectible streetwear and launched a collection of metaverse sneakers. When considering the sneaker market and how many purchase rare sneakers not to wear but collect and trade it’s no surprise this approach has been highly effective.

Where do we go from here?

Not everything in the world needs to be digital, but I believe there are many cases of existing digital products which could benefit with tangible ownership.

Music

Music is the natural evolution for this technology from visual art. Artists are tired of being controlled by the companies during their creative process and receiving fractions of the royalties earned from their work. This technology has the potential to allow for full creative control and give artists the ability to own their sound, like visual artists do currently.

sound.xyz has been enabling artists to generate fairer income through their music by developing a platform to allow artists to distribute their music by NFT, and has so far managed to support over 100 musicians.

Gaming

Gaming is a huge market and lends itself perfectly to the concept of digital ownership.

NFT projects like Cool Cats with Cooltopia and 10KTF with battle.town have managed to develop gamified experiences for holders which can only be accessed by holding their NFT, giving them tangible value beyond being a collectible – essentially doubling as a license for the game.

However the potential could be far beyond this. Fortnite makes revenues in the millions for their skins, however once purchased these can’t be traded. Converting these to NFTs would not only allow for trading, but give gamers a sense of ownership and satisfaction and increase brand loyalty.

Marketing

Not all, but certain NFT projects have become large community led brands in their own right.

We’ve already started to see traditional brands leverage these via collaborations for their marketing efforts, such as the Coolmans Universe NFT project taking over the Crocs social media – a campaign which got the highest engagement for any Crocs social content across channels.

A proposal

NFTs provide a highly engaging opportunity to market campaigns that are not bound by time, location and/or device, allowing brands to interact with their audience in a truly unique way. Whether it’s through a special event or behind-the-scenes content, NFTs offer an exciting way to learn more about products and services while providing added value to fans of the brand.

A bingo brand could run a social campaign directing their customers to mint a free NFT, which reveal to be randomised bingo balls. This could be followed by a live stream where 10 numbers are called out and the corresponding NFTs would evolve into golden tickets, which can be cashed in for a prize.

A food events brand could utilise their active audience and offer an exclusive NFT pass to visitors, forming a passionate micro community. Holders could be rewarded with behind the scenes insights, exclusive access, and invitations to further private events.