Let\u2019s start with what an NFT or \u2018Non-Fungible Token\u2019 is: it is often described as a digital artwork, but it can be any digital asset, such as a song, document or piece of software, with a distinct signature. <\/p>\n\n\n\n Imagine a painting comes up for sale: you\u2019re told it\u2019s a Picasso, it looks like a Picasso and it even has Picasso\u2019s signature on the bottom. Unfortunately, it is identical to one hanging in a gallery. Which is the real one? With a real painting, you might find you have to do a lot of work to prove which is the fake. With an NFT, the artwork has a digital signature to prove authenticity. <\/p>\n\n\n\n \u201cBut<\/em>,\u201d you might ask, \u201ccan\u2019t someone just copy the property and claim it for themselves?<\/em>\u201d The short answer is that digital properties often can<\/em> be copied easily, but they are not the original. How does one prove something is<\/em> original? Enter blockchain. <\/p>\n\n\n\n Blockchain is a ledger of these artworks (as well as transactions) which are secured and authenticated by a network of computers, which creates a digital signature for NFTs. Effectively, the blockchain is like a chain of custody which can reassure you that the digital property is original, not a copy. You can copy the content, but you cannot copy the blockchain, because it is being held on several different computers and a discrepancy shows that fakery has taken place. <\/p>\n\n\n\n While this is a superficial explanation of NFTs, we can use it as the basis for understanding how to use them. If you would like to know more, here<\/a> is a dummies\u2019 guide to NFTs. <\/p>\n\n\n\n NFTs are going mainstream: they are culturally relevant, fun, and useful<\/em>. Let\u2019s explore some of the mainstream uses of NFTs and some companies leading the way. Ticketing<\/strong> Seatlab<\/a> are creating a marketplace for NFT ticketing which can reward fans and restrict the exploitation of the secondary market. Authenticating products<\/strong> Open for Vintage<\/a> are creating NFTs with every purchase of their luxury second hand products. Picture a digital version of your Birkin bag that proves its authenticity. Never get hoodwinked again! Community and social
Unless you\u2019ve been hiding under a rock for the last few years, you will have heard of NFTs. And unless you are already in the world of cryptocurrencies and fintech, you might be confused about what they are and how relevant they are to your business. If NFTs are a mystery to you, this article will outline what they are and how you might be able to use them in your own business.\u00a0<\/p>\n\n\n\n![\"\"\/](\"https:\/\/lh5.googleusercontent.com\/Mvkc3inTqC2RkB7A578qy0R5yZ0U8hti8b38u3GDctShGEhmL1rdV9UEoFzHD8O-iOoHCqEoFyMcI7j3Son47IKUzFRace-VlAfBtNVlOTT0tcSyBfxL7L-KvBaM4fEnVWuy4eYj\")
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You have bought a ticket to see your favourite act live. But imagine that it does more than simply get you into the venue: it could be memorabilia and be worth something in the future. Using smart contracts, the revenues can be split between Ariana Grande, front of house, lighting crew and cleaners without having to use a payments company and pay them fees. It could also provide security on backstage passes, give the ticket holder early access to future ticket sales or further digital content. <\/p>\n\n\n\n
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Your company has invested in building a machine. Profitability depends upon the customer using only authentic replacement parts from your company, but another company is making cheap copies overseas. Through the tokenisation of physical goods and services, your customer can prove that they own an original of that product or prove that they received a specific service. <\/p>\n\n\n\n
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<\/strong>NFTs derive their value from people\u2019s willingness to pay for them. These people are often part of a community who have similar interests and find value in similar things. Hence why the price of some NFTs have skyrocketed. <\/p>\n\n\n\n![\"\"\/](\"https:\/\/lh5.googleusercontent.com\/aAuV59JQp9IR7oyCIOvPEQddGdbGYLDVnhOOYvW3iNt_vir2Av7B87807n6URphEfswQInQIxj8jn8-ocXOULBnFiz43n54avkXyBNAlzfKxGZgpuOTGKf9SDAaN2rrMKjQf5UdV\")