What Is An NFT?
Non-Fungible Tokens, commonly known as NFTs, have taken the world by storm. From renowned auction houses like Christies featuring the emerging asset category, to celebs and professional athletes, it seems that everyone is jumping on board. But what exactly are they? Let’s explore!
Unlike cryptocurrencies like Bitcoin and Ethereum, NFTs are wholly unique, no two NFTs are the same, enabling scarcity and verifiable uniqueness within digital environments. For the most part, physical objects are easily distinguishable, and when they are not, there are tried and true methods to determine asset integrity. Digital assets have not been granted the same privilege, and with the pervasiveness of the internet, it has become near impossible to determine what is an authentic asset and what is a mere copy.
Blockchain technology leverages a unique system of data recording to make an asset impossible to covertly alter or replicate. NFTs are unique 'on-chain' digital assets, verifiable on the blockchain. Open networks enable anyone to confirm the legitimacy, uniqueness, and ownership of a digital asset. Additionally, tokenization significantly enhances transfer and tradeability, enabling the seamless movement of assets and creation of dynamic secondary markets.
What Is The Value Of NFTs?
Throughout history, humans have associated scarcity with value. Something that is 1-of-1 is more desirable than a run of the mill item. For example, a pair of shoes worn by Michael Jordan can sell for over $500,000, whereas a structurally identical model goes for around $120 at Foot Locker. But how do we prove that something is legit, especially when it comes to digital assets? NFTs can provide a means of verification in both physical and digital assets that we did not have in the past. This opens up a plethora of opportunities, such as esports collectibles and memorabilia to experience the same value generation as a pair of Jordans worn by Michael himself.
In the world of art, a piece's value may climb as time passes. Famous paintings have been known to go for several multiples over what they originally sold for,meaning that the initial sale price is usually the lowest,with future owners benefiting from resales. NFTs can revolutionize how art changes hands, enabling artists to include terms directly within the contract, such as royalties in perpetuity and charitable donations.This can allow the original artist or causes they subscribe to to benefit as their work increases in value, even past the initial point of sale!
The tokenization of assets, both analog and digital, introduces an enhanced layer of connectivity for onchain participants. For example, as mentioned by DigitalBits in their article Utility-Driven NFTs, the music industry can harness NFT functionality to enable more engaging fan experiences, utilize blockchain technology to facilitate direct connectivity between artist and fan.
In the music industry, NFTs and blockchain technology can significantly reduce costs for parties by cutting out the 'middlemen' (record labels, streaming services, etc.). Direct connectivity between content creators and fans is made possible through NFTs and blockchain technology. And this is by no means limited to music, blockchain technology is actively disintermediating industries across the world. One in particular that will heavily be impacted is gaming, and this is where Zytara and DigitalBits come in.
NFTs In The Gaming Industry
The gaming industry is growing at an incredible pace, and the esports sub-industry is only recently catching on. Esports fans are just as, if not more passionate than as they are in traditional sports fans. Events such as the League of Legends World Championships even surpassed conventional sports events like the Super Bowl. Using blockchain, teams and players are provided with a medium to connect directly with passionate fans, introducing an entirely new layer to the fan experience.
Imagine traveling to a gaming convention with an exclusive LAN event room where fans can play with their favorite professional players and streamers. Now picture this room is accessible only through holding an exclusive NFT. Before this, access passes were easily duplicable or subject to alteration. However, if this access pass took the form of an NFT, these fraudulent measures are no longer a threat.
Gaming is a unique industry, where nearly all value is digital. NFTs can revolutionize how these assets are perceived and valued, turning something like an in-game 'skin' into a digital asset! Game developers can release exclusive items and limit their quantity to accentuate their value. Furthermore, players can truly own what they purchase, facilitating transfer and trade, even if the game is no longer available.
The Power of Tokens for Engagement In The Gaming Industry
The potential for utility within NFTs is expansive. This can range from on-chain voting to let a content creator know what type of video they should make next, or granting access to exclusive events like that imaginary LAN party with streamers and players. The options are endless, and NFTs powering engagement are a significant step towards truly rewarding fans.
How Zytara Labs Utilizes NFTs In The Gaming Space
With Zytara Labs, NFTs are the way of the future. Zytara Labs facilitates the NFT process for brands and artists around the globe, from creation and sale to championing the many reasons for using the technology. A perfect example of what Zytara Labs is capable of can be seen within their recent Dignitas partnership, which will include the provision of NFT content for Dignitas, and empowering fans with new ways to engage with the team.
The official Dignitas NFTs are being built on the DigitalBits blockchain, and include: digital collectibles, exclusive access, rare privileges, player meet-and-greets, giveaways, contests, and more! Let’s say, a fan purchases a Dignitas digital player card NFT. Not only is that card a verifiable limited edition, it can be used to unlock other rewards like the opportunity to play in a live game with their favorite player, or a signed jersey sent to them in the mail. This is just the beginning of what NFTs from Zytara Labs have to offer. Over time, fans will have access to countless methods of connecting with their favourite teams, players, and other fans, while fully immersed in the content they love.
The partnership between Zytara Labs and Dignitas is on a course to bring NFTs to the mainstream, especially within the massive sectors of esports and gaming. NFTs and blockchain technology will empower esports athletes, content creators, digital personalities, and digital producers by bringing their artistry to a whole new level where value is indisputable.
Join The Waitlist for Dignitas NFTs at zytara.com/dignitas!