In the past, people couldn't seem to wrap their heads around considering JPEGs or GIFs as art collectibles. Fast forward to the present, there is something called an NFT a crypto investment asset with a market that exceeded $49 million in 2021.
In fact, when Twitter co-founder Jack Dorsey's first tweet was minted and sold as an NFT worth $2.9 million to a Malaysia-based businessman in March, everyone sat up and took notice. These unique digital tokens are taking the world by storm and tech investors are continuing to see huge profits in this area.
Indeed, NFTs are hitting all the right notes and enthusiasts seem to listen. But before getting deep into the topic, what are they exactly?
NFTs, or non-fungible tokens, are created as a means for digitizing files to be secured in a way that guarantees ownership and creates scarcity. Like physical art, NFTs can also be sold with the artist retaining the copyright, the buyer acquiring both the digital asset and the copyright, or deciding on a percentage of secondary sales due to the owner.
Generally, NFTs can represent any form of digital file. It can be a JPEG, GIF, video, piece of art, music, or even real estate. Minting, or converting these files into 'tokens' and securing them on a blockchain will make trading, selling, and buying efficient and fraud-free.
NFT Adoption in Southeast Asia
The fast growth of NFTs in the Asian scene has been nothing but outstanding. In 2021, Central and Southeast Asia accounted for 35% of the $22 billion global NFT space. With 5.65 million users, Thailand is hailed as the country with the highest contribution to NFT-based web traffic.
Aside from looking good on record, Southeast Asia embracing NFTs also meant that creators across the region are given the chance to tap into a potential market that was previously deemed unthinkable gaining access to the decentralized digital economy.
Empowering Every Artist Asian or Non-Asian
Early bird artists who have already adopted NFTs found the experience empowering, similar to a new digital encounter where they can design fresh aesthetics. Furthermore, the NFT industry is offering creators newly improved methods to engage closely with a massive audience. What's more, the inspiring feeling doesn't stop here.
Here are five ways how NFTs socially impact society.
1. Level Playing Field
For far too long, content platforms and record labels have taken up huge chunks of profits from talented creators. Through NFTs, there are a brand new set of options for ownership and monetization for them.
2. Verified Identity
Around a billion people all over the globe have limited to no access to identification. Utilizing blockchain technology, NFTs will bridge the gap between underserved communities in remote regions, including refugees, and a verifiable on-chain ID.
3. Community Building
By paving the way to community ownership, NFTs have opened the doors to enhanced
community engagement and building. In addition, these digital assets also give rewards for contributions made by its members, while providing them with a memento to recognize the part they've taken in the movements of change.
4. Economic Aspect
In a decentralized economy, middlemen are no longer necessary. Following this thought, NFTs allow artists and creators from underserved communities to put up their artworks directly to the market. As a result, they can keep their earnings pretty much to themselves.
5. Philanthropy and Charity
Non-fungible tokens will lay the groundwork for an upgraded era of philanthropy and charity. Non-profit organizations can release their own NFT collections and form a partnership with high-value NFT projects in today's version of fundraising. Meanwhile, non-profit institutions receiving donations can do so in perpetuity. With secondary sales, they can develop passive revenue streams that align with their advocacies.
NFTs Are Not Going Anywhere
In reality, the concept of non-fungible tokens is still a work in progress. Therefore, it is inevitable to have skeptics that believe NFTs are a fad that will soon fall flat similar to indices in any market after it reaches their peak. On the other hand, it is also evident how NFT-focused platforms continue to emerge and offer something people might not have seen before.
Take for instance Mittaria. It is a budding entertainment hub that aims to empower a global community of animation enthusiasts by connecting and nurturing their creativity through IPs and NFTs. Here, artists co-own and co-author content to bring their imagination to life while sharing their passion and aspirations.
Moving forward, with the increasing interest in NFTs, it's only a matter of time before they become a staple part of one's daily life and make the world a better place.