New technologies can become complex to assimilate, especially with the constant changes and innovations that they generate to their passage. Therefore, in this article we will enter Blockchain technology, more specifically, in NFTs or digital assets. In principle, we will pass through traditional definitions, so we will use an analogy that seems key to me to be able to understand the multiple uses and possibilities that offers us this incredible technology and, lastly, some cases and examples.
While you consider a great connoisseur or believe that you already understand these concepts, have no doubt that this article will probably teach you another perspective. Not only that you have a more tool to explain to your uncle at the next family dinner, who believes that by taking a screenshot with your mobile can already ignore the power of Blockchain, or your distant cousin, who thinks everything is a Ponzi scheme, but will also be able to better take advantage of the opportunities that are presented in the future, because it is the future.
First, what is Blockchain? The same can be understood as a new database completely different from the traditional ones, which revolutionize the way we interact with the web. This is safe and decentralized, since there is no central authority that manages the information, but the power is distributed among the entire user network. It is transparent and unchanging, because the blocks, which contain information that is accessible to all who have a computer with the Internet, can only be added, never deleted.
Blockchain technology has been mainly used in the context of cryptocurrencies, such as Bitcoin, but has a variety of other potential applications. Here is where digital assets, commonly called NFTs or non-fungable Tokens come into play. These tokens, which inhabit Blockchain, usually represent the property of a single digital object, although they can also associate with physical objects. Before going into detail, I think here is the time to pass the analogy, which will allow us to better digest these definitions.
I want you to think of NFTs as bits of digital paper. Why? Well, we know that paper is an incredibly versatile and powerful technology due to its multiple uses. In it we can draw, we can create art and write whatever it is, such as: a message, a poem, a book, a diary, write music and even create an agreement or a contract. Do you come to mind? You can use the role not only to represent money, but also to represent indirectly, such as debt, obligations and actions, among other things.
I could keep listing examples, but I don't want to bother you. The point is that paper is an incredible technology that has changed the world and has a great resemblance to the NFTs. The same work as pieces of digital paper, which allow us to carry out all the cases mentioned above, and also give us certain advantages and opportunities in relation to physical role and also to what we could create with the internet we usually use.
The first advantage is that they last forever, when meeting at Blockchain, it is not possible to eliminate them. The second advantage is that they automatically keep a record of everything that will happen throughout their existence, as their previous owners and the values to which it was transacted, if that were the case. Finally, these can be sent to any part of the world in an instant. They would be like magical, indestructible roles, with a little intelligence and teleportation ability.
The purpose of this metaphor is obviously not to suggest that digital assets are exactly identical to the pieces of paper, but to demonstrate that this technology is extremely versatile and fundamental, with almost a multitude of uses.
Large titans of different industries are already leaving their footprint in this area, making important investments and acquisitions, as well as creating projects that enable them to improve and deepen the way consumers communicate. Some of these companies are Google, Meta, Nike, Microsoft, Adidas, Starbucks, Shopify and Twitter among many others. If you are interested, you can ask Google or YouTube about the different strategies they use and what impact they are generating.
What yes, before closing with the article, I would like to leave a general case where the usefulness of this technology is clear. In the ticket-buying industry, both for concerts and events, currently, only in the primary sale of these tickets is where artists and companies are benefited, then behind it forms a gigantic secondary market where large amounts of money move, from which the artists and broadcasters of tickets usually do not receive a single penny.
But what would happen if these tickets were tokenized and converted to NFT’s? The same organizers, in addition to obtaining the profits of the primary sale, can also benefit from all transactions carried out in the secondary market thanks to the Royalties. The royalties are a preset percentage that is intended for the creators every time the token changes hands, i.e. whether it buys or sells. Then, on the consumer side, if the event was something very special, such as a unique experience or something super exclusive, the token can become a very valuable collectible over time, keeping all its favorable features that arise from being in Blockchain.
In conclusion, this technology opens the doors to a world of opportunities, which cross any industry, so it is very important to understand well its bases and how it works. Already with this reading you took your first step or strengthened your knowledge, congratulations.
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