NFT technology is revolutionizing digital ownership rights and the number of use cases are exploding.
By now even those with a passing curiosity have heard of CryptoPunks and Bored Ape Yacht Club. Yet the potential of NFTs is so much deeper than simply collecting JPEGs. To begin, let’s examine some of the key benefits that NFTs provide.
“Blockchain technology does not only offer the ability to establish scarcity for digital content but also has the potential to unlock other exciting social mechanics that artists can experiment with, while reaching new global audiences directly without needing to cross physical borders and other barriers”
— Misha Libman, Co-founder at Snark.art
Security
Traditional art collectors must be aware of the risks of transacting artwork. Before making a purchase, they have to study the provenance of the piece and take additional security measures to ensure the transaction goes smoothly.
In contrast, NFTs can be traded in a most secure and transparent way. NFTs function as immutable digital signatures, delivering unprecedented confidence to collectors.
This confidence extends to the future legacy of art, as well. Digital works stored on the blockchain are immune from censorship and physical decay — but must still be stored properly. Blockchain technology also allows people to move assets of massive value globally, securely, and in full public view.
Just as blockchain technology established a protocol of trust enabling the formation of digital currency, NFTs now guarantee authenticity, uniqueness, and ownership of unique assets.
Transparency and Authenticity
While the internet has long provided us with the ability to publish digital creations, we’ve never had the means of confirming a piece’s authenticity and ownership. Now, NFTs have finally given us the ability to attach irrefutable evidence of creation and ownership to unique digital assets.
NFT transactions are effortlessly traceable, assuring proof of both valuation and confirmable scarcity.
These mechanisms also make it possible to track edition sizes of specific pieces. So, for instance, a single project like Capsule House includes 4 different NFT edition tiers. Collectors can trace both their own individual Capsule House NFT and every other piece from the collection, too.
Accessibility
As more of us start to work remotely, reject materialism or simply lighten our load for travel, digital collecting increases in utility. Instead of needing a wall to display your art, you can simply view your collection on your smartphone after installing a crypto wallet — and with the DoinGud app, you’ll only need your email address.
Not satisfied by the 2D digital experience? For those who are willing to venture deeper into the metaverse, there are 3D immersive art exhibitions in VR spaces as well. For example, fans are able to visit our partner MOCA’s gallery in Somnium Space.
Revenue and Royalties
In the real world, the management and collection of creator royalties has necessitated guilds, unions and agencies all siphoning off creators’ already limited revenue streams. With NFT technology, royalties can be hard-coded into the NFT itself, meaning that each time an NFT is sold or resold, a percentage of the proceeds is automatically sent to the creator.
“The royalties on all secondary sales has become a fundamental part of what makes NFTs attractive to artists of all kinds. If you can find the audience willing to support you, it becomes the kind of passive income artists have only ever dreamed of.”
— Jonathan Mann, Creator of Songaday
Composability
One of the most exciting things about NFTs is how they can be thought of as lego pieces that interact with one another. This means that creators can launch NFTs that leverage and build on top of the success of other NFTs.
For instance, if a creator releases an NFT collection, let’s say 10,000 programmatically generated avatars — i.e. Flufs — then another creator can decide to create an NFT collection, i.e. accessories, for that previously launched collection. In the case of the wonderfully cool and funky 3D Fluf NFTs, it can be a jetpack to fly through the metaverse!
Other use-cases enabled by composability include hidden NFT-exclusive content that is unlockable via the ownership of another NFT.
Putting this concept in perspective, composability is what enables any NFT project to be thought of as a module of a much larger, interconnected ecosystem.
About DoinGud
DoinGud is an NFT ecosystem focused on inspiring creativity and positive social impact. We pride ourselves on accessibility and sustainability, providing next-gen Web3 tools to empower our community to create, curate, collaborate, and connect with one another in the digital space.
Thank you for being part of this amazing journey with us.
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Article written by Ian Boucher and edited by Dan Kahan and Adrien Berthou.
Article also published on our self-hosted blog.
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