This post is the second in a three-blog series on simplifying NFTs for idiots like me.
In the previous blog, we explored what #NFTs are, how they are #minted and what #Smart Contracts are.
Here, let’s examine a few ways that NFTs can possibly affect our daily lives in the near future.
Disclaimer: This is NOT investment advice. This is NOT definitive and is open to challenge from the experts.
COLLECTIBLES
This is the context in which NFTs are talked about the most today. Who would have thought that seemingly inconspicuous things like GIFs could be collected? NFTs have made this possible by making them unique, traceable and verifiable for authenticity.
Just like how connoisseurs of art collect originals from across the ages, NFTs will drive a whole new surge of collectibles.
People have always been driven by the idea of owning something rare, because it is linked to their social status. This common inaccessibility is what gives it value.
Owning the NFT of an art or a footwear brand is so that you can show them off to those who care. Basically, bragging rights.
NFTs can even become the medium of choice for philatelists, who might not want to carry around their rarest of stamps for risk of theft or worse, damage.
This works for all things collectible, where there is no real utility for the owned product other than the ownership title. For example, sneakerheads fight to buy limited edition Nikes, but never really wear them. Today, Nike is offering them NFTs instead of physical possession of the sneakers.
While collectibles is what the mainstream NFT narrative currently focusses on, let's look at how they can work beyond just enabling collectibles.
PROOF OF OWNERSHIP
Today, it is such a crazy hassle for the layman to hold real estate. There are constant fears around establishing ownership that requires frequent visits to various government offices (survey office, registrar office, etc.), not to mention the innumerable documents, transactions and certificates to keep track of. Needless to say, the never-ending queues for mandatory physical registrations at the time of executing a transaction, are quite off-putting. The prevalence of fake documents only adds to the complexity.
Now, what if all these documents were digitized and minted so the actual piece of land you own can be carried in your NFT wallet? When you want to sell this property, you may not even have to visit the government offices, because all necessary records are stored as a part of the NFT. A smart contract can ensure that the NFT gets deposited into the buyer’s wallet after the funds are transferred into your account. Deal done!
This is theoretically possible and, in my opinion, very likely sooner than later.
GATE ACCESS
Most tickets we buy today are non-tradable or non-exchangeable. If done anyway, it accounts for 'black market' sales and is again encumbered by counterfeits.
If tickets are issued as NFTs, they can be easily tradable and traceable. Organizers can issue Premium NFTs with exclusive backstage access and star engagements as added incentives, and let market demand determine their value. Companies can offer their corporate box seats to individuals and guests on an event-by-event basis. Cancelled shows can either be reimbursed to the right owner easily, or the IOU passes can become tradeable again at market value.
Airlines can soon issue their priority passes in the form of NFTs. NFT owners can have first preference on any flight and maybe even in business class. If they aren't scheduled to fly for a while, the NFT can be leased out or even sold at market value.
SOCIAL MEDIA MONETIZATION
It is widely acknowledged that social media platforms create no media. #Meta makes billions from user-generated content, on #Facebook and #Instagram, while the actual content creators get nothing. Any monetization, such as influencer tie-ups with brands for paid partnerships, happen offline.
What if all that the content you post on social media is minted and tradeable? The value of the content could be determined by how viral it becomes. Because it is minted, it cannot be copied, and ownership is granted. Thereby enabling an original creation to find its own market value, organically.
If a post doesn't work too well on a specific platform, creators can simply move their work to any other platform with favourable terms and a more lucrative smart contract.
While it's not too different from monetizing your content on YouTube today, NFTs can easily prevent duplication or plagiarism of content, an issue that is quite prevalent on most platforms, including YouTube. Now imagine monetizing ALL the content you create on EVERY platform!
#MarkZuckerberg says Meta will soon allow Facebook and Instagram users to mint their posts, and Meta's platforms can become NFT marketplaces. While that's great news for content creators, one needs to be wary of the terms of the smart contract with these large platforms, to avoid one-sided minting of user-generated content.
The entire social media and user-generated content space is up for a huge upheaval with the advent of NFTs.
This will also have significant effect on how brands interact with their customers and build a following. And that's what we'll cover in the third and final part of this series.
