Non-Fungible Tokens are quickly evolving and building a bridge into a decentralized world. Let's see what this means for all of us.
September 27, 2023
Understanding the NFT Ecosystem
The non-fungible token (NFT) industry is new, exciting, unpredictable, and rapidly changing. We’re in a period in which the core technology enabling such applications is still being developed. But that hasn’t stopped devs, engineers, and creators around the world from laying down some impressive early foundations. Both in terms of business models and innovative community-centric projects.
NFTs are used for everything from investment and collecting to sharing your own personal projects. But it'll take some years to grow into what is obviously going to be a potential giant.
The increasing value of the NFT industry
There are hundreds of millions of dollars in NFT transactions weekly. This year, CryptoPunk #2338 was sold for $4.37 million, and the most expensive NFT, Everydays: the First 5000 Days **by Beeple, sold for $69.3 million! Imagine what you could do with that amount of money. You could buy a 1955 Mercedes-Benz, a mansion, or even a zombie fortification chamber. Was that last one too weird? Well, let's better get back to the growth of the NFT market.
Non-fungible tokens allow users to interact with each other in a digital world and on a peer-to-peer basis. NFTs are defining new possibilities for creators of digital art, music, photography, brands, and more. They're also a new and very dynamic medium of investment.
Brands like the NBA and Coca-Cola are launching their NFTs, and artists like Grimes, Shakira, Steve Aoki, and more are joining the community as well. NFTs in the Ethereum blockchain are part of a transparent, decentralized system and cannot be altered, making them the next most innovative transactions!
Scarcity and rarity are other factors that people will keep looking at. This is part of what makes NFTs so attractive. The ownership of a unique and rare token increases its value, most of the time, plus the authenticity provided by the blockchain. The future might be uncertain, but as we advance in the NFT industry and new opportunities arise, its value and recognition will grow.
Unlimited possibilities for creatives
Designers, devs, musicians, photographers, producers, and more creatives are jumping into the adventure of sharing their ideas and their creations with the world as NFTs. It's a real challenge at first, but it's a more significant opportunity. Although NFT art sales are led mainly by men, some of the greatest creators are women. Like Itzel Yard, the highest-selling woman NFT artist, or Nyla Hayes, the 12-year-old artist behind the Long Neckies collection, and TIME's first Artist-in-Residence.
Image by Jason Naylor
As a matter of earnings, artists not only get money when they sell a token for the first time, but they also collect royalties on every future NFT sale.
NFTs are an excellent opportunity for creators to make their art reach other channels, but the benefits extend to collectors as well. Believe it or not, NFTs are now the same as holding a physical artwork—even better.
The security provided by the blockchain is one of the central benefits of non-fungible tokens. These cannot be modified or altered in any way. Plus, collectors don't have to deal with intermediates to buy an NFT. This is just another way of how transparent the industry is. Directly trading between collectors and creators helps support the adoption of NFTs, blockchain technology, and the community's growth.
If you're a creator trying to get your generative art in the NFT industry but still don't know how to do it. Check out how to mint your NFT collection with Bueno.
An untapped and diverse community
In the NFT space, there are:
Creators
Creators can be the artists or the producers behind an NFT project. They’re helping build this industry. Tapping into the power of blockchain technology, they’re being compensated fairly and securely for their efforts, and at the same time, they’re giving more control to those that support their work.
Investors
Investors in this space understand that NFTs are part of a new way of investment in the digital world. Some of them could be seen as risk-takers, and some others firmly believe in the culture that the NFT space is creating, the scarcity it offers, plus the uniqueness of a token itself. And all this translates into a higher return on investment.
Collectors
Collectors are similar to investors, but they do not necessarily stick to one token; they can transform their collections over time. They're visionaries as well, recognizing the artists' work and the potential of NFTs.
Fans
Fans hold on to their token not only for money but also because they appreciate them and even identify themselves in some characters. Fans are an active part of the community and its direction.
Flippers
Flippers are more like fast buyers; they can buy many newly released NFTs and sell them shortly in the secondary market to make a quick profit.
They all understand NFTs and the possibilities these bring to the table. People are what keep the NFT art booming. From creators to investors, they are essential to what influences the market. For example, you probably heard about NFTs in the news when Twitter's former CEO, Jack Dorsey was one of the recognized names that backed NFTs at the beginning of 2021. He even sold his first NFT for almost $3 million—and it was a tweet!
Bonus: To learn more about NFT terms check out our NFT Glossary for Beginners.
The NFT community is more than hype
Without a vibrant community of users and token-holders, NFT projects can't thrive in the long term. Through channels like Discord and Twitter, people interact actively empowering and supporting each other. Following their favorite projects, collectors, and creators. These social media channels became a place for solving questions and asking for support or advice.
As a member of a community, you become a brand ambassador, part of an exclusive club, and a loyalty program, all at the same time. You can also influence the future of the project since, sometimes, the community decides what's next in the roadmap. For example, people vote to support a charity with a specified percentage of auction earnings or propose new collabs with another NFT creator.
When you're part of an NFT community, you can access unique experiences, activities, and products. A wild example is the party Bored Ape Yacht Club hosted in October 2021, at an actual yacht for 1,000 of their holders.
Making NFTs more accessible
NFTs allow adults to be kids again, trading cards, collectibles, and tokens with the most fun and punk looks—only this time with cryptocurrencies.
However, not everything in the garden is rosy. Entering the NFT space is not easy for all. There's a lot of work behind each token, and many people reject the opportunity to join, because of the fear of being scammed, or the technical challenges, such as learning how to code.
At Bueno, with our no-code tools, we're contributing to making this space more inclusive and accessible. We can all create new solutions and services that can change the world for the better. The applications of blockchain technology are endless. These will impact as well how we do business. NFTs are just a little piece of what we can do.
Remember to do your own research before jumping into the NFT adventure.
