Saturday, March 27, 2021

NFTs - A new wave of disruption

Non fungible tokens, NFTs are digital tokens that are unique and tied to the exclusive digital ownership of an asset.  As such, they can be bought, sold, traded and relatively easily due to the digital nature of the ownership.  By being non-fungible, it can't be replaced with something exactly the same.  Some examples of NFTs you can buy are:  Art, trading cards, and even Tweets.

NFTs are undergoing an initial growth wave with more than $200 million (R1) being spent on artwork, memes, and GIFS in the past month.  This has skyrocketed the adoption of platforms and marketplaces such as Mintable and NBA Top shots.

What's interesting to note about NFTs is that traditional asset collections such as stamps, coins, cards are an easy to understand transition to exclusive digital ownership.  However, there remain many other markets primed for disruption with this new and revolutionary technology.  Mark Cuban, the owner of the Dallas Mavericks is looking into using NFT technology to sell tickets for their NBA games (R2).  This shows the application potential to other industries to disrupt them by addressing pain points and concerns of trust and transparency.

 


References:

https://time.com/5947720/nft-art/

https://www.cnbc.com/2021/03/26/mark-cuban-dallas-mavericks-may-use-nfts-for-ticketing.html


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