Non-fungible tokens, or NFTs, have garnered a lot of attention in recent years as a way to authenticate and monetize digital art and collectibles. But their very name, as jargon, and the focus on technology instead of consumer value is halting their mainstream adoption.
NFTs are used as a way to authenticate and monetize digital assets, such as art, collectibles, and other forms of media. They offer a number of benefits over traditional database entries, including:
- Non-fungibility: NFTs are unique and cannot be replaced with any other token, making them ideal for authenticating and tracking ownership of one-of-a-kind items.
- Verifiability: NFTs are stored on a decentralized blockchain, which makes it easy to verify their authenticity and provenance by anyone savvy enough.
- Immutability: The data stored on a blockchain is permanent and cannot be altered, ensuring that the ownership and history of an NFT are secure and unchangeable.
- Liquidity: Because NFTs are stored on a blockchain and can be bought and sold on various marketplaces, they offer increased liquidity compared to traditional database entries.
Consumers ultimately care about value and brand, and little about the underlying technology. Think about something as essential as banking or credit cards. Do you know how numbers are tracked, transmitted, calculated, verified/etc before they show on your statement or online portal? What matters is that your charges and money are right, not how it happens.
In the realm of digital collectable, Nintendo has icons that are purchasable with their own coins, but these icons and coins are not on a blockchain and don’t need to be. The power of the intellectual property and ecosystem created by Nintendo drive usage. If you want a custom icon from one of their games and you want it to show on your Nintendo profile, it’s the only way to get that. In their private icon marketplace with their coins.
Similarly, when people use Twitter, they don’t care about posting text to a database tied to their account; they care about “tweeting” and the reach of those tweets.
As with any new technology, early adopters are often the first to embrace and promote its benefits. This is certainly true with non-fungible tokens (NFTs). While early adopters may be excited about the technology and the values it represents, most consumers are ultimately more interested in the value that NFTs can bring to them. This is why it’s important for NFT projects and platforms to focus on creating value for the consumer, rather than getting bogged down in the technicalities of the technology. By demonstrating the value that NFTs can offer to consumers, it’s possible to drive widespread adoption and mainstream success.
Demonstrating the values they offer most likely doesn’t involve any espousing of the 4 items listed earlier unless those are problems users are looking to actively solve or struggling with.
For NFTs to see adoption on popular blockchains like ethereum