Why they matter
The utility is too good.
We, for the first time as the human race, have a technologically sound way to attach a unique identity to any digital asset. Blockchain technology gives digital assets indisputable origins, properties, and other pieces of metadata (a fancy term for information stored inside a digital asset) — all collected in a single smart contract behind every NFT.
They transform ownership economy.
Did you know that if you upload a photo of yourself to Instagram, Meta has the rights to “host, use, distribute, modify, run, copy, publicly perform or display, translate, and create derivative works” of your content? NFTs could put an end to those days.
Not only do digital assets have the capability of having their own identity, but they can be owned by individual wallets. We can transparently track this ownership through time. From a copyright perspective, it just makes sense. An original creator will always be indisputable—along with every owner since.
Ownership of an NFT can be transferred or sold to another person by the current owner. NFTs have the ability for royalties to be built into their smart contracts. If royalties are in place, creators receive a percentage of every secondary sale. This is a huge win for creators everywhere.
They are birthing a new revolution.
NFTs are currently revolutionizing sectors of our culture such as art, sports and video games. Thousands of artists are eating multiple meals a day for the first time in their lives. Fans can own some of their favorite moments in sports history. People are playing games to earn money that they can exchange for wearables or trade for cold, hard cash. These industries haven’t even begun to see the impact NFT technology will bring them as it continues to rapidly progress.
London Trade Art says it best when they say that “blockchain not only democratizes individual ability to buy NFTs, it also democratizes access to new markets for all artists, regardless of location.”
In the near future, NFTs will change the future of employment, healthcare, and education, due to their ability to track records and assets. In our virtual future, digital objects have real value and physical objects can own a digital identity. There is no going back.
NFT knowledge will keep you relevant.
It’s going to get very difficult to remain relevant without engaging with NFTs and, subsequently, Web3. History can prove it: When websites first emerged, brands that didn’t adhere to this new wave of technology didn’t make it (we miss you, Blockbuster). When Web2 was born and social media became mainstream, brands who didn’t adopt a social media strategy or use it at all, are currently facing a slow death. It will be the same with Web3.
They create loyalty among your community.
NFTs are inherently community-fostering. People love collecting — they always have, and they always will. People bond with other people over things that they collect — whether it’s records by a certain artist, classic cars, or Beanie Babies.
NFTs are similar in this way. They indicate which “club” you’re in, and, as it extends to brands, who you support and who you’re a fan of. There are countless Discords that have been established for the holders of certain NFTs to join and chat with one another, and holders are usually rewarded over time just for holding the token in their wallet!
They can make you money.
I don’t really need to explain this one, but let me just say this: Digital goods will be the preferred good in the future. They’ve got easy-to-track data and no delivery/product needed. So, it goes without saying that investing in this space is likely a good idea for your wallet (digital or not).
We’re spending more and more time online as a species and it’s not going to stop. More time online will accelerate the preference to sell digitally. Not to mention — the popularity of digital goods is rising. Whether it’s profile pics or wearables, people love to express identity online.