Why NFTs are the future.

At this point, almost everyone has heard the phrase NFTs being muttered about. If you haven’t, I’d start here. But chances are, you’ve seen the insane sales that high-profile artists like Beeple have fetched at auctions. There’s a lot of buzz about NFTs, but how real is it all? It took me a while to wrap my head it all and what it means, but I am here to convince you that it’s the future.

Right now we are seeing NFTs as digital artwork, motion artwork and music, but it will eventually extend into everything and anything that is digital — from goods, apparel, avatars, AR/VR, utilities, experiences and anything else we haven’t dreamt up yet.

Collectibles

When I first heard about the NFT card marketplace, I was a little confused. NBA’s Top Shot cards were similar to physical trading cards but were all about collecting the top video moments of famous plays. It was a genius way of translating the physical cards people were used to into a digital collectible that was special and unique. Topps is getting into the NFT market in late April and the physical trading card marketplace is going to quickly transform into a digital marketplace. Apply this to all collectible physical goods and this market will become MASSIVE in the upcoming year. Every major entertainment IP will get into the collectible NFT market in the coming months.

Metaverse Digital Goods

2021 is the year of the metaverse — but what is it? For starters, the emerging metaverse is all around us. It exists in video games like Fortnite and Roblox, but it also is being built on top of our existing world in creative ways. There are a lot of definitions of the metaverse, but this is my favorite from Enjin:

Collecting digital fish in Animal Crossing.

Digital Experiences or iNFTs

From augmented reality lenses to virtual reality to interactive entertainment, digital experiences will be collected like memories. Since the start of the pandemic, digital experiences have slowly been replacing physical experiences. As the world opens back up, digital experiences will become a mainstay as well as augmenting real-world physical experiences.

Doubt it will look anything like this, but hopefully, it’s announced soon.
Would you buy a ticket from this guy?
$1 Billion in Fortnite goods.

Movies, Video Games and Digital Products

Over the last 5 years or so, a large percentage of people have been purchasing movies and video games digitally — opting to download instantly versus wait for a physical product to arrive in the mail. Like I mentioned before, if I purchase a movie from Apple or Sony, I can only watch the movie within their ecosystem. This works really well if you’ve fully bought into the product universe for the particular company.

Brands

Consumer brands always want to be part of “what’s next”, and a few brands jumped quickly into the NFT market. Taco Bell dropped animated GIF NFTs featuring its tacos on Rarible that have sold tens of thousands of dollars. Pizza Hut tried the same thing but didn’t see the same success. This prompts the question of the quality of the content of the NFT versus the novelty value.

People spent $5,000 on this Taco Bell NFT

NFT 2.0

We are currently at the beginning of NFT 1.0. It’s exciting, weird, confusing, lucrative, and complicated. Every day is going to bring more innovation, challenges, and complications. First off, the carbon footprint issue is a big concern for a lot of artists and collectors. Technically NFTs aren’t really responsible for the massive amount of CO2 emissions, but the underlying blockchain technology behind Ethereum is. It’s safe to say that the entire industry is quickly looking at ways to reduce its footprint.

Jason Zada

Jason is an Emmy Award-winning storyteller and director. Best known for Take This Lollipop, The Forest and countless bad karaoke songs. http://www.jasonzada.com