What is an NFT? (Explained)

So if you've been breathing for the past couple of months, you've probably heard of NFTs. NFTs? NFTs. For those scratching your heads, I got you. An NFT is a non fungible token. All right, y', all, thanks for watching. So I should probably explain what that is. A non fungible token is basically a digital file that comes with a certificate of authenticity. NFTs are like what baseball cards used to be, a personalized digital collectible. Now, fungible is a word that often shows up in legalese, so allow me to break it down for you. Something fungible can be exchanged for something else of the same kind. Think of, think of cash. Let's say you borrow $20 from a friend. When you pay that friend back, you can pay them back with $4, $5 bills or two $10 bills or whatever other configuration gets you to that $20amount, right? Because cash is fungible, aka interchangeable. The reason an NFT is a non fungible token is because due to the blockchain, technology is secured to, it has extra space that allows for more information to be stored to make it original, non fungible. That extra information is you proof of your digital ownership. A ledger that says this is mine and it's been mine since this date. Which again means it isn't interchangeable. NFTs are collectible, unique, and in the digital world of copies, this allows you to know who actually now owns that clip of that flying dog you love so much. NFTs should raise your eyebrows for two words. That's right. That ownership token can be applied to prove purchase of almost any digital asset in a series of digital marketplaces. And people have paid a lot. Huge notable purchases have included this meme, this tweet, and this sandwich. While collectibles and special editions are definitely nothing new. Hey, remember pogs? The reason these collectibles are in the news now is because one, people are paying B B B B big money. And two, it's now easier than ever to access. The platforms need actually sell and buy these pieces. With marketplaces like Rarible finally making an uprise, the NFT balloon is growing. And while a good percentage of that air may be hype, it also includes some of the possibilities. This is a taco. That is a taco dipped in digital sauce. This is Taco Bell's NFT that they put online for purchase to benefit their scholarship program and almost immediately sold out. But that's not the cool part for you as a marketer. The cool part is what they're actually doing consumer interaction, driving insane brand awareness, all while supporting a good cause, which is something that is pretty important to about 83% of millennials out there. If you care about that kind of thing. Yeah, so if we're being really real, NFTs are booming and people are still learning a lot about them. They started off as a really cool way for artists to make direct money by selling their work without the middleman, and now it's ballooned into the place where we are now. It also may not be the best for the environment.

NFTs have a dirty secret. Non fungible tokens share a harmful characteristic with cryptocurrencies in that they both use a lot of energy. Greenhouse gas emissions are tied to NFTs.

While we've definitely seen some crazy examples, if you're in marketing when it comes to your brand, think of this as a way to get more followers and beef up your social media with cool new promotions. For example, create limited memorabilia to celebrate special milestones, then use them in your marketing campaigns around those special milestones. You can give them away to the first X number of customers that sign up or even auction them off as standalone products. They are way better served on that than making a quick $3 million on that gift you made of yourself. Even though it's a great gift. That's all the info. Do with it what you will. Until next time. Remember, it all starts with a tre.