After many years as a minor blockchain concept, NFTs have emerged as a new asset class in the booming blockchain industry worth billions of dollars. Previously, NFTs were only understood by tech-savvy crypto enthusiasts, but that has long changed. Almost anyone who can research and watch clips online can understand and earn from them.
Celebrities, venture capitalists, and several stakeholders in the digital world have joined the NFT trend. However, the world is yet to come to terms with the many ways NFTs can change the globe. Forkast, a blockchain media organization, identified many use cases for NFTs in its “State of the NFT Market” report.
NFTs are changing the world as we know it. These digital assets are heralding a new wave of digital possibilities for artists, collectors, and anyone who loves a new trend. The 2020 COVID-19 quarantine regulations accelerated the emergence of NFTs in the public spotlight. With everyone working remotely and looking for digital means to scale their income, NFTs quickly gained popularity. The sale of Beeple’s $69 million NFT, “The First 5000 Days,” was an eye-opener, showing everyone the beginning of a new era.
How NFTs Are Changing the World
NFTs are somewhat like regular digital assets like cryptocurrencies. Users can trade them. However, there is a special catch for NFTs. Their ownership is uncontestable. Each NFT has a digital proof of ownership, making it one-of-a-kind.
Furthermore, NFTs have brought a sense of security. This is because NFTs have a decentralized nature. These digital assets exist on the blockchain. Additionally, blockchain serves as a digital record that certifies ownership. It logs every transaction and eliminates intermediaries. Crypto enthusiasts have long sought a more decentralized way of offering their services, and NFTs provide that feature.
In addition, digitalization is one key way NFTs have brought global change. The world has never had the possibility of digitalizing anything, including a vehicle, a house, or even a moment. As a result, brands and large-scale organizations can provide their customers with variety. Most of the time, the digital item is available before a physical product.
NFTs are also providing artists with the ability to receive royalties on secondary sales of their original pieces. Artists can incorporate royalty rates into their artwork and continue to profit from their labor after the actual initial purchase.
A New Way to Raise Funds
According to Forkast, NFTs have the ability to change the world via fundraising. In its report, Forkast wrote that NFTs as a trend could be utilized in social efforts that would change the world. NFTs can generate funds to support several philanthropic causes. NFTs can affect areas like education, gender equality, and health. Funds from sales can also address concerns in children and animal conservation.
NBA icon Shaquille O’Neal showed how much potential NFTs have as a fundraising medium. The 50-year-old former basketball pro raked in a whopping $2 million through the sale of his NFTs. O’Neal channeled the proceeds into his humanitarian organization. Also, former Twitter CEO Jack Dorsey converted his first tweet into an NFT and sold it for $2.9 million, which he then donated to GiveDirectly.
NFTs and Animal Conservation Efforts
NFTs have a variety of use cases. For example, animal lovers can support conservation efforts by purchasing NFTs of their favorite animals. WildEarth, a TV channel, created its own set of NFTs tied to 25 species from South Africa’s Djuma Game Reserve. According to Forkast, the custodian of the animals’ environment receives around 40% of the value of each NFT sold by WildEarth. Furthermore, the custodian receives 8% of any future resale. Forkast reported that WildEarth has sold around 1,065 NFTs, with $13,900 going to the Djuma Game Reserve.
Additionally, owners of these NFTs will enjoy several benefits. For a start, they will receive unique information on their animals’ appearances. They’ll also have access to wildlife conservation activities. Owners would also interact with the Djuma Game Reserve and the larger WildEarth community.
UNICEF, one of the world’s largest charitable and humanitarian organizations for children, unveiled its plans to utilize NFTs for a common good. Earlier this year, the organization launched Patchwork Kingdoms, a collection of 1,000 data-driven NFTs. It disbursed proceeds from the initial sale to various programs such as Giga. Patchwork Kingdoms is the UN’s biggest NFT series so far.
How NFTs Generate Funds
NFTs primarily produce and distribute revenue for charitable causes and nonprofit organizations in two main ways. The first is the traditional method of profitably selling NFTs. People can do this by either minting or selling an NFT. At the end of the sale, the vendor then takes their revenue and chooses a local charity to which they will donate some or all of their proceeds.
Another way that NFTs generate income is through projects designed to raise funds for a certain cause. For example, show host Ellen DeGeneres designed and sold off an NFT to benefit the World Central Kitchen. Furthermore, most NFT projects include charity as part of their goal. For instance, Dainty Dolphins is an NFT effort that aims to raise awareness about endangered species. It also donates a major amount of its earnings to community-selected organizations.
The world has only scratched the surface of the possibilities locked within NFTs. There is no doubt that NFTs can have huge financial rewards. But, they also light the world and make it a better place. Check this out for more info about the Forkast NFT report.
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