Some people think that NFTs are just overpriced JPEGs. “Why should I pay for an image when I can just click *right button* *save* for free?”, they keep asking.
They have a point. And it's easy to see that now that most NFTs are virtually worthless. But the technology behind non-fungible tokens is worth exploring.
An NFT is essentially just a permanent line of code that can’t be altered. You can attach anything to it, including (but not limited to) digital art, which is what most people do. Anything can be made into an NFT, including songs, documents. The list is endless. NFTs guarantee permanent authenticity and ownership.
So far, we’ve basically only seen one type of NFT in the shape of the 3D/2D images that people buy and sell and trade and collect. That is indeed essentially a form of digital art but there are many things that NFTs could be used for and I thought I’d put together a quick list. Feel free to add ideas in the comments, by the way.
1. Web domains
I have a couple of websites that I run on in WordPress, which is a great platform in my opinion, but every year since 2011 I’ve been paying a fee to renew my domain subscriptions (two in total, but at one point I had four).
This is not only inconvenient and pricey, but it also leaves me exposed to third-party risks.
Like, what if WordPress suddenly decided that your domain could no longer be used by you because a major global company wants it, or because of change in government regulations or internal policy? You’d be screwed.
In addition to the domains I use on WordPress I’ve minted my domains on Unstoppable Domains and FreeName.io, and I now these own it forever.
This is great, except no major web browser supports NFT domains as of yet. Sooner or later, we hope, they'll be integrated.
2. Certificate of ownership
Imagine you want to buy a rare timepiece made by Rolex, which is by far and away the most counterfeited watch brand, and you want to make sure the watch is legit. You have to have it authenticated and that costs money and time. Imagine you could attach an NFT to a physical product you buy, whether it’s your house, or a watch, or a car, or whatever.
The NFT would give you immediate access to the information you need. It would guarantee legitimate ownership as well as authenticity of said product, saving buyers and sellers time and money.
3. Music
This is also, in essence, a type of certificate of ownership but it’s related to an industry where ownership and authenticity are a vital component of every transaction and every interaction.
When you go to your favourite club, or bar, or restaurant, and you hear some songs you recognise. When you’re listening to the radio. Or spotify. When you’re at a large event and there’s music in the background.
Virtually every single time you listen to any song, ever, anywhere in the world, that recording is played under strict regulations because the owner and/or author (not always the same person or entity) has to be compensated every time that record is played, even when they’re not present.
Even when you get it for free. And that puts in motion a complex sequence of events, linking an endless list of entities, some are private entities, some are government-linked and government-regulated authorities that work in the music industry as copyright holders and distributors.
NFTs could help smooth these transactions and reduce the amount of stress and trouble these companies go through to make sure everything is done right.
Some prominent artists are now releasing NFT versions of their song, which also grant you, the buyer, ownership of a percentage of a song. In other words, every time somebody plays Justin Bieber's Company (example) anywhere in the world, he gets paid, you get paid.
The downside, no surprise there, is we're talking about peanuts. For every $1,000 the artist makes, you'd be lucky to make one cent.
But it's a start.
