In an increasingly expanding metaverse of unexpected realities, what do blockchain tech, decentralized finance and $5.65 million dollars have in common?
An NFT collection, by Dolce & Gabbana, recently sold at auction on the UNXD luxury digital platform in multiple Etherium cryptocurrency blockchain transactions conducted independently of centralized financial institutions. The exchange value of these transactions was approximately $5.65 million dollars. What?
What Is an NFT?
NFT is short for non-fungible token. A non-fungible token is a crypto entity (token) linked to a unique, non-replicable digital asset via a cryptocurrency’s blockchain technology. Etherium is the primary cryptocurrency for NFTs.
The uniqueness of the digital asset is authenticated by an information tab permanently linked to the digital asset. The blockchain ledger records the indelible and unalterable NFT transactions, which include owner information and asset value. This record supports the authenticity of the digital asset and protects the rights of owners. The blockchain also prohibits duplication of NFTs, making each asset transferable, but not interchangeable. This means they cannot simply be swapped like a nickel can be swapped for another nickel. In short, NFTs are unique, authentic, transferable and valuable. They are also hot commodities!
What Is Hot?
NFTs are all the rage in an arena expected to grow by leaps and bounds. The possibilities for their uses appear to be endless. This characteristic holds broad implications for a wide range of industries, as NFTs can represent practically anything the creator can imagine. This representation might include artwork, music, video, film, fashion, sports and a host of other things.
The plethora of seemingly unlimited possibilities translates to opportunities for brands to flex their creative muscles in highly imaginative ways in their quest to cultivate brand affinity. Consider a sampling of current trends:
• The aforementioned Dolce and Gabbana NFT collection, titled “The Collezione Genesi”, is a presentation of digital couture upon the runway of the metaverse. The collection consists of nine digital assets sold separately, including “Glass Suit”, “Doge Crown” and gold and silver versions of “Dress from a Dream”. Leveraging its creativity, the company supplemented its NFT creations with a physical version of the “Doge Crown” and a wearable, tailor-made version of the “Glass Suit”. Following on the heels of this success, D&G hopes to use future NFTs to offer customers creative levels of elite brand access.
• Gucci’s, ”PROOF OF SOVEREIGNTY: A Curated NFT Sale by Lady PheOnix”, is a short film that showcases the Gucci Aria collection. In a grand gesture of corporate responsibility, Gucci donated the $25,000 dollars from NFT sale proceeds to UNICEF, setting an example worthy of emulation.
• “Louis the Game” is a not-for-sale NFT created by Louis Vuitton. The asset is a video game inviting players to navigate multiple virtual worlds on a journey that leads to a birthday party. The game is a nod to the 200th birthday of the company’s founder. Additional NFT collectibles embedded inside the game can be picked up along the journey.
• Major League Baseball has partnered with Candy Digital to create officially-licensed NFT assets to buy, sell, trade, or engage with others. The variety of digital assets include baseball cards, sportswear, video and images of stadiums, championship rings and other paraphernalia.
• Autograph is an NFT platform co-founded by quarterback, Tom Brady. The new company has already signed deals with athletes representing a number of sports such as baseball, tennis, golf, hockey, skateboarding and others. The company has also developed partnerships with Lionsgate studio and DraftKings online gaming and sports entertainment company.
The future is here and the sky is the limit. NFTs are like comets racing through the metaverse of alt-reality offering glimpses of a new frontier that beckons exploration.