2022 was the biggest year yet for the world of NFT (Non-fungible token). With the International NFT day just a few days past (at the writing of this article), many people still haven’t come to terms with how big the NFT industry is.
Most people know NFTs as digital artworks on the internet. Well, it’s way more than that. Entrepreneurs can use this technology to scale their businesses and as investment opportunities. So how exactly does it work, how do you begin, and why do you need NFTs?
Where to Begin
To know how to use NFTs, you need first to understand what they are. NFTs are cryptographic assets based on blockchain technology, just like cryptocurrencies. Blockchain technology keeps transactional records in a digital ledger that make it tamper-proof and transparent. All transactions in the digital ledger go on with the authorization of the owner.
The most common NFT assets include GIFs, images, music, videos, and collectibles. NFTs are valuable due to the fact that only one version of the asset exists and only one individual can own it at a time. Also, no one can create the same NFT or alter its ownership. As the owner or creator, you have the power to decide the cost of your NFT.
Examples of NFTs include:
- Everydays: the First 5000 Days
Everydays: the First 5000 Days was created by Mike Winkelmann, known professionally as Beeple. It’s a collage of 5000 digital images created by Beeple for his Everydays series. It sold for $69.3 million at Christie’s in 2021.
- Doge NFT
The Doge NFT is a cult meme of a smirking Shiba Inu dog named Kabosu. In June 2021, it sold for $4 million. The NFT investor group that purchased the NFT now sells fractional ownership of it, meaning anyone can own a piece for as little as $1.
- Nyan Cat GIF
The Nyan Cat GIF is a wildly popular GIF. Its creator decided to turn it into an NFT during its 10th anniversary and auction it off. The winning bid was 300 Ethereum tokens.
- Bored Ape Yatch Club
Bored Ape Yatch Club NFT is a collection of 10,000 cartoonish apes. It was created by four friends who were inspired to use apes as their social avatars because “aping in” is a term for folks who would buy new NFTs without considering the risks involved. A few years later everyone from entrepreneurs to celebrities would be aping in and spending hundreds of thousands of dollars on their creations. (Just recently, Eminem spent a whopping $462,000 to acquire a Bored Ape NFT.)
How to Create a NFT
NFTs are created using a process called minting. Minting refers to the creation of digital tokens using a technique known as cryptography. For you to mint NFTs for yourself, you’ll have to have a smart contract created (paid for using cryptocurrency). A smart contract is a piece of software code that will allow the storage of information in the blockchain transparently and securely.
You should note that there is no one specific way to create an NFT. There are different ways you can do it depending on the tools you use. The guide outlined below is only a general guideline.
- Decide the type of NFT to create
- Choose a marketplace
- Open a crypto wallet
- Acquire crypto
- Set up a connection between your crypto wallet and NFT platform and mint
Some examples of NFT Marketplaces include:
How Entrepreneurs Can Use NFTs in Business
Entrepreneurs can use NFTs to eliminate the reliance on paperwork when it comes to supply chain management and geographical limitations where the business should be raking in revenue.
Businesses can use NFTs to increase their marketing value, come up with new ways of raising capital, content creation, and improving brand awareness. The technology can help shape the way you engage with new customers and retain the current ones.
You can also utilize the NFT technology in areas to do with marketing, trade licensing, and product-oriented testing. A huge marketing opportunity is using NFTs to advertise in the metaverse. The safety of NFTs against data plagiarism means that businesses can explore new markets and consumers without the fear of tampering.
For artists and content creators, NFTs provide a chance to monetize their work. The time when artists rely on galleries or auction houses to sell their art is almost coming to an end. An artist can now engage directly with the consumer and sell their work as NFTs. This means that they get to pocket more in profits than they would before NFTs came around.
We’ve also seen some of the biggest brands in the country take advantage of the NFT boom. Good examples are Charmin and Taco Bell that auctioned themed NFTs to help with charity work. Taco Bell’s NFT was sold in a matter of minutes, with the highest bids at 1.5 wrapped ether (WETH).
If you are an entrepreneur interested in understanding NFTs, visit nftswithlee.com to see the industry through the eyes of an expert and learn the tricks to use NFTs to scale your business. Lee Richter — NFT Creator, award-Winning CEO, Visionary, and member of the Forbes Business Council since 2019 — will help you figure out where to begin, how to master NFTs, and why you need them for fast-paced growth.