From virtual real estate to digital shoes, NFTs are revolutionizing the way we think about ownership in the digital realm. But as the market for these unique digital assets heats up, it's important to understand what they are, how they work, and what impact NFTs have on various industries. In this article, we will answer these hot questions and also explain why NFT design services will be in special demand in the upcoming years. The Concept of NFT Art Explained SimplySo, let's get started by explaining what is NFT and how it works. The trick is that, despite being a buzzword, some business owners still struggle with understanding NFT's meaning, and that's why they can't leverage its benefits in full. As you may know, NFT stands for "non-fungible token." By the way, have you collected stamps or stickers in your childhood? I bet you did, and if so, understanding what's an NFT will be as easy as pie for you. Think of it like a special sticker that only you have. In addition to being exceptionally yours, it also proves that you own a certain digital thing. Now, we have an NFT explained, but what differentiates it from other cryptocurrencies? The answer refers us to the non-fungibility of this precise token. An NFT is a unique and singular digital asset that cannot be replaced by another one. It can only be exchanged for a certain amount of cryptocurrency. Cryptocurrencies, on the other hand, are fungible assets that can be exchanged one for another without the loss of value. The non-fungible nature of an NFT is the key reason why they have become the main tool to prove ownership and authenticity. And recently, NFT crypto art has become especially popular. In 2021, the NFT art market surpassed $40 billion. Statista also projects that the revenue in the NFT segment will reach $1,601.00 million in 2023, with an expected annual growth rate of 18.55%, resulting in a projected total amount of $3,753.00 million by 2027. So, the market for NFT digital art is thriving and growing. No wonder both NFT artists and businesses are appreciating the benefits of this unique technology. What Are the Main Advantages of NFT Art?Non-fungible tokens are a game-changing technology in the field of art. Below are the main advantages of NFTs for artists and businesses. NFT benefits for artists NFTs prove the authenticity and ownership of digital art. And this is the fundamental answer to the question of what is the point of owning an NFT. It securely, transparently, and undoubtedly proves that an NFT artist is the only rightful owner and exclusive creator of a certain artwork. It connects artists and designers with art connoisseurs without time and space constraints. Recently, we had to wait until our favorite artist comes to our city with an exhibition or even travel abroad to see the paintings we love alive (talking about artists living in our age). NFTs leave no room for fraudulent behavior common in the art world. In 2012, Mark Landis created and donated numerous forgeries to museums across the United States, claiming that they were authentic works by various artists. In addition to forgetting the masterpieces, he also used fake identities and his true motivators are still unknown. This is only one of the dozens of cases of art forgery from the world of physical art, but in the world of digital one, NFT fully eliminates the probability of fraudulent behavior when it comes to artwork authenticity and ownership. NFTs are promising for aspiring artists looking for new sources of income. Selling digital art is significantly easier than selling a physical painting. Everything an artist needs to do is to join an NFT marketplace and start making money from their ideas and creativity. NFT benefits for businesses NFTs provide a new and growing market for art. In addition to giving aspiring artists an opportunity to sell their artworks to a wide audience, NFT technology creates a new and growing market at the business scale, so companies can invest in up-and-coming artists. NFTs offer a safe and secure way to invest in art. Since an NFT artwork can't be counterfeit because of blockchain technology, it allows businesses to invest in art pieces with confidence, and then, trade them at a better price. NFTs can be used to create outstanding experiences for customers. For example, companies can create NFT tokens representing unique access to virtual exhibitions of limited collections (we will review a detailed example further), which in turn, drives the feeling of belonging to a certain closed community. NFTs can become innovative and exclusive digital marketing tools. In addition to providing unique experiences to customers, NFT arts can also be used as marketing tools. For instance, businesses can provide special incentives, for example, personalized discounts, in the form of NFT, driving customer engagement and increasing loyalty. Global Industries Using NFTsAfter the benefits of NFT art become clear, let's proceed with overviewing the industries that NFT is going to revolutionize. GamingSince this industry is on the verge of art and technology, there are a lot of use cases of NFT. So, what does NFT stand for in gaming? This technology provides players with unique and valuable digital assets that they can collect and trade — an NFT game art can represent a valuable collectible, like a weapon or skin. For example, the game Axie Infinity allows players to create digital creatures represented as NFTs and then manage them as needed. In addition, gaming NFTs can represent a certain achievement, like winning a tournament and owning it will prove a high status of a gamer within a community. An NFT art token can also be used to prove the ownership of virtual real estate within the game. In such games as Decentraland, gamers can create and develop their own virtual sites, represent them as NFT, and trade them further. FashionThe NFT use cases in this industry are no less fascinating than in gaming. First, NFTs can be used to represent virtual fashion items (that by the way, the heroes of games can wear, including even those created by Balenciaga). There are also virtual fashion houses like The Fabricant which create limited-edition clothing in the form of NFT. An NFT art token can also be used to prove the authenticity of a fashion item. In this way, the customers who are buying luxury items can be sure that they are genuine and track their ownership history. For instance, recently Gucci partnered with a blockchain platform to create NFT tokens right for this goal. And here is another outstanding example of how NFT can deliver a unique customer experience. Not long ago, Louis Vuitton created an NFT that gives its customers exclusive access to a virtual tour of its collection. MusicIn the music industry, digital NFT art works in the same way as in fashion and gaming. Musicians can use it to create unique collectibles and memorabilia, in addition to proving their ownership of a certain song or instrumental piece. Using NFTs also eliminates fraud and helps to make sure that the composer or artist is properly compensated. For example, electronic music artist 3LAU tokenized versions of his album “Ultraviolet,” which were then sold as NFTs for over $11.6 million. Real EstateWhile real estate seems to have nothing in common with crypto NFT art, this technology is especially promising for selling and buying property in a more secure and transparent way. For example, NFT tokens can be used to track the history of the property, verify its rightful ownership, find out whether there was a legal dispute around it, and pay for the property in the most secure way possible. To date, NFT isn't largely adopted in this industry because of the lack of regulation. However, the technology has the potential to revolutionize the way real estate assets are bought, sold, and traded in the future. SportsLast but not least, let's answer the question “How does NFT work in the sports industry?” Similar to the way it delivers value in the gaming and fashion industries, non-fungible tokens can be used to provide virtual and exclusive access to sports events. NFT tokens can also represent a digital ticket, or a sports club membership, and be even used to prove the ownership of a sports team. Furthermore, NFTs can be used in online sports gaming, such as fantasy sports. For example, Sorare is a popular fantasy football game that incorporates NFTs into the gameplay. What NFT Art Design Services Become More Popular This Year?Given the rising popularity of NFT arts and their diverse use cases across industries, the demand for NFT design services is growing too. But which of them will be extremely popular this year? It would be safe to project that creating virtual and augmented reality experiences will be an especially demanded NFT design service because of the growing popularity of AR and VR technology and their large adoption by different industries. Because of the growing gaming industry (which is projected to reach $546 billion by 2028), developing game-related NFT digital art will also be popular. In addition, non-fungible tokens can be utilized to enhance video marketing. For example, you can make an animated character and represent it as an NFT. There is also an opportunity to use NFT to provide the users with access to exclusive content, like behind-the-scenes footage, or create limited edition video content. ConclusionThe rise of NFT art opened up a new world of opportunities for the digital art industry, and video production isn't an exception. By creating an NFT video, you can provide unique and verifiable proof of ownership for your digital content that can be bought and sold, opening up the potential for monetization. Leveraging NFT design services is also promising for providing your customers with exclusive content access and outstanding experiences, so don't miss out on this exciting new trend in video marketing. If the opportunities NFT opens for video marketing sound promising to your business, consider getting in touch with NFT designers and artists today!
