Why NFTs Are Important
In one of our previous blogs, What Is An NFT? The Future of Art, we discovered what the essence of an NFT is and touched on why the technology is so disruptive and popular.
As one of the exciting technologies to emerge over the last couple of years that is geared towards the individual, NFTs are helping the world move further into the digital age.
In this article, we’ll take a deeper look into why non-fungible tokens are more than just ‘rare items’ and can even become a cornerstone technology during the next decade. From blending physical and digital worlds to acting as a basis for new iterations of the internet, or providing a means to connect fans directly with brands, athletes and celebrities, there’s no shortage in NFT use cases.
Protecting digital and physical assets
Okay, first we need to establish some foundations to build the rest of this article upon!
- As we touched on in our ‘What is an NFT’ article, NFTs reside on a blockchain. Blockchain technology is a crucial and unique development often attributed to characteristics like incorruptible, permanent, decentralized, and so on. At a high level, a blockchain is a public ledger for recording information through a peer-to-peer network. Every transaction on a blockchain is thoroughly verified by a network of special computers located around the world before it is encrypted, or hashed, into the blockchain forever. Once a transaction is agreed upon and written into the blockchain, it cannot be changed, revoked, or otherwise altered. Thus, the owner of an asset that sits on a blockchain cannot ‘lose’ their asset to theft or corruption, they must send, or ‘push’, it somewhere to get rid of it.
- Smart contracts are the second piece of the NFT recipe. In order to introduce a ‘delayed push’ system to blockchain technology, digitally coded contracts can be created with specific terms of agreement between users. These smart contracts can even be written to execute predefined actions on the blockchain once the agreed upon conditions are met. In essence, a smart contract acts as a mediator to make sure complex agreements (that go beyond the scope of a blockchain’s purpose) can be delivered.
The result of these two ingenious technologies working in conjunction via NFTs is a crossover of two worlds — the physical and digital. We recently saw an example of this when the property rights to a lovely 4-bedroom home in Florida were minted as an NFT on a blockchain and then auctioned off (thanks to smart contract technology) to a new home owner.
With the global rigidity, blockchains provide and the transferability of smart contracts, the home was able to be sold to one buyer out of a pool of 50 potential buyers, and closing the property was significantly streamlined.
Fundamental technologies for the future of the internet
Since the intrinsic value of NFT technology is the utility of being an incorruptible, frictionless asset, NFTs are able to play a role that many other assets can’t even attempt, and can even be useful in more than one environment. As Web3 is developed, the internet will slowly evolve into a frontier for individuals and NFTs may be vital to such an undertaking.
The idea of Web3 is to protect users from the failures of Web2 (corruptive data usage, censorship, user manipulation). And just like in our physical world example, NFTs could be used to establish ownership over personal websites or personal data, and even resilience from external and nefarious forces on the web who may wish to alter what is online and who owns it.
Any information added to Web3 could be encrypted and therefore protected indefinitely, which of course is an incredibly exciting development for the internet.
A lot of hype about the future of the internet is also focused on the metaverse. And much like on Web3, NFTs can certainly be used as a verifiable social tool for information.
But they can also be used as economical instruments when trading things like virtual real estate, virtual outfits, movie tickets, and anything that exists in the metaverse. Minting NFTs in the digital world for consumables and other assets online is perhaps the most robust route to providing metaverse users with safe and reliable experiences.
Sports — A Fayre competition
The cultural effect that NFTs are creating is also something to take note of. A great example of how NFTs are already changing traditional industries for fans’ benefit is Fayre’s major partnership with RCD Espanyol, one of Spain’s oldest and most beloved fútbol clubs.
With Fayre’s help, RCD Espanyol is using NFTs to bring their enormous fan base a taste of the future with in-stadium activations. Using Fayre’s innovative Web3 and NFT solutions, fans are able to enjoy real-world and virtual experiences while in the stadium, interact with the players on the team, and more digital solutions are on the way.
On top of that, Fayre has also formed a multi-year collaboration with the IPA (International Professional Pool Association). Fayre will assist the IPA in creating and developing digital assets such as NFTs, as well as building their presence in the metaverse. NFTs will make a headline appearance as Fayre sponsors the 2022 IPA World Champions.
Both of these organizations garner millions of fans, supporters, and spectators per event, opening the door to enormous potential for NFTs and the social utility they can create.
Pretty cool, right? Well, Fayre isn’t stopping with sports, and in fact, we’re planning to work with celebrities and artists to find new ways to interact with fans using NFTs too. Art is often said to be “the sign of the times”, and NFTs are currently one of the most dominant mediums for art and technology. The possibilities are endless!
Perhaps the best part about NFTs, and especially Fayre, is that anyone can join along for the ride!