Non-Fungible Tokens have been appearing in business journals for the last several weeks, but what are they and how do they work? Non-Fungible Tokens, or NFTs for short, are units of data on a blockchain that represent a particular and unique item.
This item can come in the form of visual art, audio files, items in a video game, or any other sort of digital visual media. The NFTs can be purchased on an NFT market (like Open Sea, Rarible or SuperRare) creating a copy of the original NFT. This allows blockchains to track, verify authenticity, and provide proof of ownership to the purchaser.
How does this relate to the entertainment industry? NFTs were originally intended to commodify digital “fine” art but have now moved into other niches. The gaming industry has been using NFTs to represent in-game assists such as cosmetic costumes or digital properties. NFTs have appeared in the music industry as well with some musicians tokenizing their songs and albums on blockchain.
The film and entertainment industry could start using NFTs as a way to “unlock” content to early adopters or exclusive viewers–especially as the move towards same day streaming releases continues. NFTs could also be used to allow owners to stream content within virtual homes and spaces. What do you see for Blockchain and NFT in the entertainment space? We’d love to hear your thoughts in the comments below.