To understand this world, we need to go to the underlying technology that NFTs are all based on – the Blockchain. Here is a great video from Slidebeam explaining this in detail (really worth the watch).
What is an NFT
The letters N-F-T stand for Non Fungible Token. Non-fungible means because of its unique nature, the item cannot be replaced or exchanged for another, whereas fungible means that there exists an item of equivalent value, like how you can always exchange one currency for another. The items the NFT represents could be anything from art to music, but whatever it is, it exists digitally – you can’t touch it, but you can own it. Minting an NFT that represents your digital item means creating for it a unique digital code. The digital code unique to each NFT is secured and stored on a public blockchain – a type of digital ledger that keeps track of the properties, price and ownership of the NFTs.
There are many different types of non-fungible tokens, and they can be created on well-known blockchains like Bitcoin and Ethereum. NFTs, however, can’t be used like real world currency. Instead, NFTs are the digital code primarily used to prove ownership of a digital item.
When an item also exists in the real world it is called PHYGITALS: a physical product, like a shoe, can be paired with a digital NFT.
What is an NFT Marketplace
An NFT Marketplace is a decentralised platform that allows trading and storing non-fungible tokens. This means that the auction and sale of digital crypto art and other non-fungible items takes place directly between traders – no other institutions, intermediaries or middle-men are involved. An NFT is a digital asset that exists completely in the digital universe and can be any type of digital file: an artwork, an article, music or even a meme.
What you’ll need to get started with NFTs
Whether you simply want to dabble around NFT marketplaces or plan to code, compile, and deploy a customised NFT smart contract of your own, you’ll need two key items – a WALLET and FUNDS in that wallet. Here’s what to do:
1. CREATE YOUR WALLET
MetaMask is a wallet that you can create and download at https://metamask.io (Make sure you type this in the browser to ensure you visit the correct site.)
– Download the chrome extension on browser
– Select “Yes, let’s get setup”
– Next slide is “Help us improve Metamask”. You can select a) no thanks or b) I agree
– Create a password
– Secret backup phase (write this down and save it somewhere)
2. ADD FUNDS TO YOUR WALLET
Ether is the “currency” you’ll need to transact with. There are a lot of options, however Ether is the most popular. You can obtain Ether from popular crypto-exchanges such as Coinbase, accessed at https://www.coinbase.com
- Click on your MetaMask wallet
- Select “Buy”
- Buy ether with a) Wyre or b) transak or c) directly deposit Ether
We suggest doing a short course to get started and highly recommend NFT Fundamentals from Udemy.
10 NFT marketplaces
To get an idea of the NFT landscape, check out the following marketplaces:
- OpenSea (https://opensea.io/), the first and largest peer-to-peer platform for crypto-collectibles
- Axie Marketplace (https://marketplace.axieinfinity.com/), where Axie Infinity game assets can be bought and sold
- CryptoPunks Marketplace (www.larvalabs.com/cryptopunks/forsale), where unique 24-x-24 pixelated punks are listed for sale
- NBA Top Shot (https://nbatopshot.com/), a marketplace for officially licensed NBA moments
- Rarible (https://rarible.com/), a marketplace that allows you to quickly create and list your own NFTs
- SuperRare (https://superrare.com/), a selective marketplace where artists must be invited to list
- Alcor (https://alcor.exchange/nft-market), a decentralised exchange where NFTs can be bought and sold
- Binance NFT Marketplace (www.binance.com/en/nft/), a general NFT marketplace operating on the Binance Smart Chain (but also supports NFTs on the Ethereum network)
- Foundation (https://foundation.app/), a platform where creators can mint and auction their digital artworks
- Crypto.com NFT (https://crypto.com/nft/marketplace), an NFT auction site that allows you to list existing NFTs or mint new ones to list
5 WAYS MARKETERS CAN USE NFTs
NFT marketing has been used by Taco Bell, Nike, Martha Stewart, SXSW, Campbell’s, Microsoft and Ray-Ban. Generally speaking, NFTs are used in marketing the same way they are used in the art world: to sell collectables.
1) Create a community or club around your NFTs
Communities naturally form around shared interests. NFTs are no exception. A large number of NFTs are now being used to gain access to exclusive social clubs for holders of a specific collection of NFTs. You may want to consider creating an exclusive Discord group just for holders of your brand’s NFTs.
2) Sell NFTs as event tickets
NFTs can be used as digital tickets for any event, physical or digital. Aside from being able to sell tickets for a higher price and attracting a wider audience, NFTs as event tickets have some other advantages. In the opinion of NonFungible, a trusted NFT market data and analysis reference, “NFTs add great value to ticketing companies and change conventional ticketing into smart ticketing. Smart tickets are interoperable, verifiable, and have clear ownership. After a ticket is redeemed at an event, it lives on in the user’s digital wallet.”
3) Make NFT collectables
If you want to sell or auction off NFTs, you have to create some works of art, product memorabilia, or other collectable content.
4) Provide NFT holders with a stake in the company
Use NFTs to give royalties to the holders.
5) Offer Other Perks
No matter how you decide to use your NFT, including perks can help people understand why they’d want to buy your NFT in the first place.
NFT’s Explained in 4 minutes!
Use NFTs to Improve Your Brand’s Marketing Strategy | Phygital Marketing
Top 5 Uses for NFTs | Non-Fungible Tokens
Apps to make NFTs
SketchAR – https://sketchar.io/nft/
GoArt – https://goart.fotor.com/
Follow us on TikTok and see how we play around with these apps.