Companies Dive into the Field of NFTs
NFTs expanding to entertainment fields
Reporter Lee Jun–woo
junu95598715@gmail.com
Are you familiar with the term, NFT? It is an abbreviation of the word ‘non-fungible token’. Over the years, the value of NFTs has increased dramatically, resulting in many calling NFTs the next Bitcoin. Although NFTs use the same programming system as cryptocurrency, there is a big difference. Cryptocurrencies such as Bitcoin are fungible, which means trades and exchanges are available. However, NFTs are non-fungible meaning it is impossible for them to be traded for or become equal to another NFT. This is due to a special ‘digital signature’ for each NFT allowing it to become a unique item. Although the term itself may be quite vague, it is easy to understand if described as a ‘collection right’ in digital form only. With the help of the metaverse system, people are able to attain products online. This has been a great advantage for the growth of the NFT system due to the Covid-19 pandemic having a great impact on society.
So, how does an NFT work? NFTs are used in many objects, tangible and intangible, such as paintings or video clips. Thanks to NFTs, artists and creators have gained another source to rely on to sell their projects or wares. To give an example, imagine an artist looking for a way to sell their art. Until now, the major method of selling was mainly by taking the painting to an auction or opening an exhibition gallery. However, because of the NFT system, artists can now sell their work directly to the consumer using an NFT. This results in more profit for the artist since there is no, or less, commission fee and a direct royalty. This goes for not only art, but also videos, pictures, and other media trending products. Another example is the famous ‘Nyan Cat’ GIF. In 2011, a video of a graphic cat flying in space with a rainbow trailing went viral, quickly becoming a popular meme for online users. Chris Torres the creator of Nyan Cat sold the crypto art rendition of the Nyan Cat meme for nearly six hundred thousand dollars. This showed how accessible NFTs could make the ownership and sale of digital products.
People are now starting to show interest in how NFTs will fit in to the entertainment field. A leading entertainment company, JYP entertainment, already has a 2.5 percent ownership over Dunamu, a company that runs a blockchain market in Korea. This shows that the entertainment field, which until recently faced only certain limits in the artistic genre, will advance in the NFT market. Experts believe that NFTs are the most optimized product in the entertainment field. This is due to demands for personal ownership over scenes of people’s favorite celebrities. Exceeding the familiar ‘chatting’ between celebrities and fans, the metaverse will allow them to meet in a virtual reality world. After that, an ecosystem where users create and sell wares in this VR world will become active with the help of NFTs.
The entertainment field is just one of many opportunities that NFTs can create. Many companies and corporations are currently in research to find fields in which NFTs can be actively utilized. NFT has already advanced deeply in the field of sports, games, social media etc. This project will hopefully create a healthy community and environment for people looking to buy or sell digital products.