Non-fungible tokens: what businesses can use them?

Non-fungible tokens (or NFTs) are unique collectible cryptoassets, digital tokens, which are a type of cryptocurrency much like Bitcoin or Ethereum.

However, unlike Bitcoin or Ethereum, NFTs cannot be replaced by another cryptoassets, even one with a comparable cost. The "Non-Fungible" (NF) Element refers to a token type that is unique and has properties that cannot be changed. It can be similar to another token or even based on the same blockchain, but its structure contains a unique part of the code that differs from any other cryptoassets.

For example, bitcoin is a fungible token — a person can sell one token and buy another, and the token will maintain the same relative value of one unit of bitcoin. To put it simply, if you replace a 10-dollar bill with two 5-dollar bills in the bank and you will still have 10 dollars.

It doesn't work this way with NFTs.

First, you need to decide on which blockchain service you want to create your NFT. Most often, Ethereum blockchain technologies are used for this purpose. There are also many NFT marketplaces like OpenSea, Rarible, or Mintable where you can create NFTs for your digital files in minutes.

To start creating your NFT, you first need to connect your crypto wallet to a chosen NFT trading platform. The wallet address will be your login details, so you don't have to provide any other details.

Afterward, you can go to the "Create" section of the trading platform, upload your work and complete the process by clicking the right button. That's it, your NFT is ready!

In general, creating your own NFT images, whether a GIF or image, does not require in-depth knowledge of the crypto industry. However, over the past few years, the use of NFTs has expanded and they are now used in several industries across different sectors.

From real estate and automobiles to racehorses and designer sneakers — tokenized real assets are future unfolding before our eyes. Let's take a look at some of the applications of this technology in various businesses:

• Commercial trade of works of art and collectibles — unique ownership rights to the material and virtual works of art. If a consumer buys an NFT directly from an artist, they get the right and confidence to claim that the item they own is truly "one of a kind."
• Gaming industry — for purchasing virtual items in video games such as skins, virtual currency, weapons, and avatars.
• Music industry. NFTs may find their recognition among collectors of "digital records". Imagine a world where musicians can sell "digital originals" of their albums in addition to regular album releases. It is an additional source of income for both an artist and a "digital records collector". If the album becomes #1, the collector will profit from owning a unique version.
• Insurance against natural disasters (land rights) — securing a public record (or token) in an immutable register, confirming a specific person's ownership of a specific piece of land. The digitalization of such documents could save a lot of hassle for the people of Haiti when, after an earthquake in 2010, the entire municipal building that had held land ownership records collapsed.
• Videos of cult sports moments can also be made unique thanks to non-fungible tokens.
• Identity verification — NFTs are perfect for combating identity fraud. For example, such a digitized token could include qualifications, medical reports, and appearance.

At their core, NFTs are bought and sold just like baseball cards and collectible stamps, which can be incredibly expensive. It's not about having access to an asset, but about having something original, unique, or one of a kind.

Here are a couple of ideas on how NFTs can be incorporated into various PR campaigns and marketing:

• Proof of taste. In the commercial art trade, the acquisition of an NFT can be presented as a "proof of taste", as a "belonging to a particular art form." This can be a very beneficial PR communication strategy. Your clients can be able to demonstrate that only they own a digital original a work of an artist or musician.
• "Your ticket is your collectible token." Theaters and music halls can turn ticket sales for various events into a real PR campaign by making a ticket for each next event with a unique code that will not be repeated.
• Ownership rights to original skins or weapons in games. Only the buyer who purchased a game skin with NFTs will have the rights, for example, to an original design of a character's armor. We believe that this is a perfect use for the NFT technology.

It is difficult to say whether the popularity of NFTs is another fad or a solid trend. However, as one can see, the potential of this technology is wide and promising.

The NFT technology can greatly facilitate proof of ownership processes, as well as provide a significant boost to creative industries and various creators.