Why NFTs Represent the Future for Creatives

In a world where anyone can be an artist, how does one stand out? How could they build a loyal following and support themselves along the way without burning out? How do you protect your creative IP? Non-fungible tokens (NFTs) offer a solution to this.

What are NFTs?

Non-fungible essentially means unique. In the case of tokens, it's a one-of-a-kind asset. A token representing something distinctive. These tokens have grown popular in the gaming space, especially with projects like CryptoKitties blowing them up.

CryptoKitties is a collectible game where each "kitty" is an NFT, meaning each one has its own value, stats, etc. Players can then breed or trade their kitties to increase its value, and eventually cashing out in ETH. It's a way for gamers to profit from their unique holdings.

These applications can benefit creators in various ways.

How Creators can Harness NFTs

Creators in all industries struggle with a common goal: to build a loyal fanbase while establishing themselves with a favorable reputation. It's one thing to get discovered, but converting them to followers is an entirely separate process. Involving a fan is the strongest, and most valuable strategy. How do NFTs help? By giving users unmatched experiences.

A band can generate signed digital copies of albums, each one distinct from the other, all represented by a unique token. That same policy can apply to digital one-on-ones and limited entry shows, ensuring fans feel closer to their favorite bands.

NFTs can also boost the indie scene, specifically in film and visual entertainment. For example, the Mzaalo app, the service supplies over 50,000 hours of content, similar to other streaming platforms like YouTube and Netflix. Where it differs however, is in its user value. Mzaalo rewards users for engagement via tokens, tokens can then be exchanged for prizes, experiences, and more. For the first time, users are provided unique valued rewards for using a streaming platform, motivating them to stay loyal.

That engagement can translate to crowdfunding opportunities as well. New film projects can entice funding with unique digital collectibles related to characters and other key aspects. Hitting additional funding goals could generate tickets to early showings or even reward top-tier donors with props from the project. Considering each unique item can be tokenized, it is easy to transfer the token to a valuable user, or winner, leading us to NFTs' next benefit: automation.

How NFTs can Save Creators Money

Creators commonly go through a third-party to interact with fans. Bands work with managers and venues, while filmmakers partner with distributors. Unfortunately, these methods can be costly, as everyone is entitled to a percentage of the profits, and there are potential issues of conflicts of interest leading to disagreements and dissatisfied end-users.

NFTs and their relevant platforms remove the need for an intermediary. These platforms are entirely autonomous due to smart contracts, saving creators both time and money. Unique tickets to shows and merchandise, for example, can all be listed via these tokens. Proceeds would go to the creator, and fans would also be rewarded for their engagement.

In terms of validity, NFTs each have a unique signature. There's no way to duplicate or otherwise scam the assets. Financial security goes a long way in developing a fanbase. They're much more likely to spend on tickets and collectibles, knowing they won't be scammed.

Even physical art can benefit here. Considering anyone can track token transactions, it's possible to check if a piece is real or fake. Artists can simply certify their work via an NFT, which users can then purchase a license to access.

Bitcoin might be all the rage in the mainstream, but NFTs are the more exciting prospect. Providing artists the ability to own their work is not to be ignored. These benefits can ripple throughout all creative industries empowering both; creators and their fans, everybody wins.