Non-fungible tokens (NFTs) are a fascinating new use of blockchain technology, providing creators of digital art, music, memes, games – in fact, anything that can be rendered digitally – a new marketplace for their work.
Digital artist Mark Winkelmann, more commonly known as Beeple, sold his third NFT for $69 million via the renowned auction house Christie’s.
You can make millions of digital copies of Beeple’s artwork, but there is only one owner – the individual or company holding the NFT (sometimes called a ‘nifty’).
Twitter founder Jack Dorsey sold his first tweet, which launched the popular social media platform, as a $2.9 million NFT. This seems like an astonishing sum of money to pay for a tweet, though the money went to charity.
A portrait of whistleblower Edward Snowden on a signed copy of a court judgment detailing violations by the law by the US’s National Security Agency sold for $5 million, with the proceeds going to the Freedom of the Press Foundation.
The potential use cases for NFTs are endless, and SA and Europe-based Libertas is positioning itself as a global leader in this space.
It has created its own TSF Blockchain which gives it the business and technical muscle to turn ideas into money.
In addition to developing its own blockchain, Libertas operates a 6 500m2 crypto mining operation based out of Bosnia and Herzegovina in Europe and has launched a crypto exchange called Libex.
Libex is an important piece of this ecosystem, providing a readymade marketplace for buying and selling NFTs.
“Cryptocurrencies are just one application to come out of blockchain technology, but we believe NFTs and business applications using blockchain technology is where the real wealth is to be created going forward,” says Libertas co-founder, George Grujic. “Look, I’m 39 and I don’t have Facebook or Instagram, but my wife and daughter do.
“There is a new generation that attaches huge value to digital art. They attach more value to digital art than physical art, and we have seen that people are prepared to pay for that art.”
Libertas co-founder Yasin Hossenbocus says SA tends to lag the rest of the world in the adoption of new tech, but this is about to change: “We have something unique in the world that we can offer. We will help you take your idea, whether it is a piece of virtual property, digital art, a digital photo, a Moneyweb story, a music clip, or a 3D rendering of a unique and interesting physical property, and we will help you create a token for that.
Tokens can be created on the TSF Blockchain using the Smart Token Generator at a minimal cost and sold on the Libex Marketplace, either by auction or for a fixed price.
NFTs will create millions of millionaires in the next decade
“NFTs will create millions of millionaires in the next decade,” says Grujic.
“Think of this as a kind of digital eBay, with the difference being that eBay deals in physical goods that are not unique. NFTs deal with property that can be rendered digitally.”
The use cases for NFTs are limitless.
- For example, one Libertas client is involved in real estate and has created an NFT for a 3D digital rendering of a heritage site in its portfolio. There will only be one original for this rendering (held by the NFT holder), though potentially millions of copies that anyone can view.
- Another client has produced a digital rendering of the famed Vilikazi Street in Soweto which is being converted into an NFT.
- A website reliant on advertising could tokenise its advertising ‘real estate’ and sell that weeks, months and years into the future. The value of the token will rise and fall based on supply and demand.
Tokenisation versus NFTs
NFTs apply where something is one of a kind, such as digital artwork. Tokens are issued for something that is commoditised (something that is not unique, such as advertising space, tickets to a concert, and so on).
Here’s where it could get interesting: people may bid for an inventor’s next invention, or an author’s next book, or an artist’s next creation – long before the first pixel is placed on the screen. ‘Likes’ and comments on postings can be rewarded in tokens to enhance engagement from the reader base.
There will be marketplaces for all sorts of digital properties, existing and yet to be conceived, that will redefine our understanding of value.
The technology to accomplish this is already in place. “The problem is that people are not familiar with NFTs yet, and there is some hesitancy about it,” says Libertas chief technology officer Asif Aziz.
“We are encouraging people to reach out to us to discuss how we can monetise their ideas and create a token around that. We have the technological capability to do this and then we have the marketplace to convert these ideas into money.
“And we’re able to do all this at extremely low costs,” says Aziz.
“One of the barriers to entry for those keen to develop NFTs for themselves is that there are too many service providers that have to be engaged, and the costs are high. We can take care of the entire process from start to finish.”
One of the novelties of NFTs is that these tokens can be sold later on through a digital exchange such as Libex.
“NFTs will create ways of monetising things that are not possible today. It will stimulate creativity in ways not before possible and will create millions of new jobs. We intend to be at the forefront of this new wave,” says Grujic.
Get your name out there
The advice from Libertas to the digital creators out there? Make a start with NFTs and get your name out there, even if your first piece of art sells for just $20 or $30. The financial rewards will increase as name recognition improve.
You can get more information here.
Brought to you by Libertas Group.
Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.