What the *&%$ is an NFT?

That is exactly what we asked ourselves when a potential client proposed a partnership with us to grow a Web3 business. Well it turned out that there were indeed some NFT fans in our office, who brought us all up to speed and a few months later, we ended up establishing an exciting partnership with Haon Earth! 

 

So back to the question that almost everyone was asking in 2021. What the hell is an NFT? 

 

Well, NFT stands for “non-fungible token” and is a unique piece of data stored on a blockchain. What is a blockchain? I hear you ask. Well, a blockchain is essentially a network of computers, called nodes, which all have the same history of transactions. So instead of one company or a database holding all the information, the information is spread across the whole of the network. Thus decentralising the control of data away from a single entity, usually governmental or corporate. 

 

Essentially an NFT is a digital certificate of ownership and buying one means you are purchasing the only verifiable version of this unique piece of data. NFTs are usually accompanied by a unique piece of art. Well, what is an example of an NFT? Well the perfect example is Bored Ape Yacht Club, an NFT project that has reached near unparalleled levels of exposure and adoption with some of the world’s most high profile individuals sporting one of their pieces as their profile pictures on Twitter, including Steph Curry and Snoop Dogg. 

 

Bored Ape

 

Bored Ape is essentially a collection of 10,000 unique cartoon apes, each with their own unique data stored on a blockchain, to prove ownership of each separate asset. Why are these NFT cartoons worth so much? A mixture of scarcity, excitement surrounding this new, high growth technology and the access to their “utilities” which is essentially the real world value that they create for token holders. For example, owners of a Bored Ape will get access to their beach club in Florida and frequently get invited to private parties. Thus, one’s Bored Ape doubles as both a prized digital collectible and a key to an incredibly lucrative private members club. 

 

Haon Earth

Since we have started working with Haon Earth, we have been inundated with people asking us, where do we go to buy an NFT? NFT’s have their own marketplace, an NFT marketplace is a platform such as Opensea. Opensea is the largest marketplace to buy and sell NFTs, they essentially act as a middleman that facilitates the buying and selling of these digital goodies. If you want to get involved in all of this excitement you’ll have to get yourself a crypto wallet, we recommend MetaMask for Ethereum.  

 

So I think I get what an NFT is now. What is the metaverse all about?

 

Well, the Oxford English Dictionary rationalises it as a “virtual-reality space in which users can interact with a computer-generated environment and other users”. Effectively, the metaverse will be a fleshed out digital environment that we users can access through VR technology. 

 

NFTs are important to consider when looking at the Metaverse as they will facilitate the true monetisation of your digital assets. Let’s say you buy your character a new hoodie, you can wear it in the Metaverse to your heart’s content and then list it on Opensea when you decide you need a new look. 

 

This is all very exciting stuff, being at the cutting edge of the next iteration of the internet, but it is important to remember that much of this technology is very much in its infancy and participating in the space now means you are very much an early adopter. With this early adoption, comes inevitable risk. This means that you should be very careful with which projects you buy.

The influx of capital into the space and the general excitement of being at the cusp of something significant means it is rather reminiscent of the dot com bubble, with plenty of projects bound to suffer the same fate as pets.com. However, at Opportunus, we are excited by the potential that Web3 and blockchain has for businesses and thus have invested into our proficiencies in the space in order to help our clients prepare for this new wave of commerce.

If you want to discuss the long term potential for your business and what blockchain means for your company, please get in touch here.

If you want to see how an ambitious team is attempting to tackle blockchain’s biggest stumbling block, its environmental impact, one cartoon sloth at a time, check out Haon Earth!