NFTs, Web 3.0, blockchain, Metaverse, CryptoPunk.
You’ve heard the terms quite once yet you continue to be unsure what they mean. including concepts like NFT Marketing.
It’s time this changed.
By the top of this guide, you’ll have an honest idea of what’s happening in this bizarre NFT world. And what this ‘NFT’ means for marketing – and potentially for your business.
You probably have many questions so let’s start answering them immediately, in the correct order.
What is Web 3.0?
Before we even believe in explaining NFTs, we’d like to offer some background first and mention Web 3.0.
Web 3.0 focuses on decentralization, blockchain technology, and token-based economics. NFTs are just another of Web 3.0’s components.
Too much jargon – I do know, but attempt to continue with me for a flash. As the name suggests, Web 3.0 is the third version of Web.
So, naturally, to know this third version online, we’ve to know what the previous versions seemed like.
Web 1.0 (1991 – 2004)
On Transfiguration, 1991, the world’s first website went live, running on the computer at CERN. One among the key people behind this great achievement was Sir Timothy-Lee, the inventor of the planet Wide Web. And thus, Web 1.0 was born: the primary version of the planet wide web.
Web 1.0 was a less interactive version of the online as we all know it today.
During the youth of the WWW, you’d usually interact online the maximum amount as (or as little) you’d interact together with your TV.
you’d pick, or rather type, the websites you wanted to go to in an equivalent way you’d pick the channels on your remote. then you’d stare at the screen and consume the content you’d wear the screen ahead of you.
It was one-way communication. You wouldn’t discuss anything, you wouldn’t subscribe to anyone, and most certainly, you wouldn’t add any friends anywhere.
Web 1.0 was one huge online brochure. Until Web 2.0 came along.
Web 2.0 (2004 – Today)
Whereas Web 1.0 was a cluster of static pages, everything in Web 2.0 built with Dynamic HTML.
Web 2.0 is the web we all know best, the present state of the online.
As Darcy DiNucci, the knowledge architecture consultant, wrote in January 1999, in her article Fragmented Future:
“The Web we all know now, which loads into a browser window in essentially static screenfuls, is merely an embryo of the online to return.
the primary glimmerings of Web 2.0 are starting to appear, and we are just beginning to see how that embryo might develop.
the online is going to understood not as screenfuls of text and graphics but as a transport mechanism, the ether through which interactivity happens. it’ll […]
appear on your display screen, […] on your television receiver […] your car dashboard […] your telephone […] hand-held game machines […] maybe even your microwave .”
Web 2.0 introduced many features that we now deem granted: blogs, wikis, social media & social networking sites, video sharing & image sharing sites, web apps, and more. during this version of the online, any user was at an equivalent time a possible creator.
This new dynamic gave birth to constructs like user-generated content, internet communities, podcasts, and even SaaS (Software as a Service).
Needless to mention, within the vast sea of Web 2.0, new industries and ideas emerged, like digital marketing and growth hacking.
Web 3.0 (Today ?)
Web 3.0 is a thought for a replacement iteration of the online.
Some features that would help define this version of the online are decentralization, AI, and blockchain technology. the simplest one-line definition I can come up with is this:
Web 3.0 dreams of a decentralized digital landscape supported by blockchain technology.
Another key point of his remake of the online is that it seeks to make a more intelligent and open digital world.
A digital world that won’t be as dependent, as shaped, and as manipulated by the large Tech companies.
It should noted that it’s difficult to define Web 3.0 today, for equivalent reasons it had been difficult to define Web 2.0 before it came into full existence.
For now, the definition we’ve allowed us to dive deeper into our next chapter: NTFS.
What are NFTs?
Now that you simply know more about the web, it’s time for the important question: WTF are NFTs?
Here’s the Wikipedia definition of an NFT: An NFT (non-fungible token) may a non-interchangeable unit of knowledge stored on a blockchain, a sort of digital ledger, which will be sold and traded.
Unfortunately, if you don’t know what blockchain is, then this definition shouldn’t make much sense to you.
I know, know – we once more need to define to elucidate another definition.
But it’ll be the last time – I promise.
So, let’s get to it!
What is Blockchain?
If we could describe blockchain with one word, that might be a database.
At its core, blockchain may a decentralized database shared across the network, an inventory of records.
it’s a ledger through which data is added and updated in real-time.
A good analogy that’s usually given to explain blockchain is Google Docs. you recognize Google Docs. It’s a web document where we write things.
At any time we will share this document with anyone so that they can start writing on the document also. within the case of blockchain,
no actual writing is involved, but rather the register of transactions, updated within the document in real-time.
To sum up our analogy, blockchain may a Google Doc you share with whoever you would like to form a transaction with, with every transaction being noted down during this document. There are, however, two main differences regarding this analogy.
Difference #1: Data can only be added and can’t be removed or edited. It’s just like the ultimate history book where the book writes down everything within the exact way that’s happening and zip is often rewritten.
Difference #2: within the case of Google Docs, the one who created the document is additionally the owner of the document.
Therefore, he has complete power over the document. But this is often not the case for blockchain. Remember the “decentralization” part that Web 3.0 was raving about?
This is often where it becomes relevant. Nobody owns this list of transactions.
Before blockchain, every digital transaction would wish the authorization of a central authority – the banking industry.
After blockchain, no middle man/ authority is required for any exchange between individuals.
Now that you simply know what (a) blockchain is, we will also understand what an NFT is.
What is an NFT?
NFT stands for “non-fungible token”. Since this doesn’t help tons, let’s break it down a touch. the primary part is “non-fungible”
which suggests unique; a digital entity that can’t get replaced. The second part may be a token; maybe a digital certificate.
At its core, an NFT may be a digital asset that links ownership to unique digital items, usually a sort of media like images, videos, and music
I know what proportion you’re keen on examples and diving deeper at now, so I will be able to deliver immediately.
Remember these years in the art industry and therefore the amount of cash that was involved in buying and selling art?
When rich folk would take in auction houses and outbid each other for many thousands, and sometimes, many dollars for a Rothko painting?
and the way all of this looked very bizarre to us mere mortals?
Well, now it’s an equivalent thing everywhere again. But this point digitally! And us mere mortals can partake during this madness!
Here’s how it works.
You know Davinci’s most famous piece of art –
the Mona Lisa. you almost certainly also know that the first Mona Lisa painting resides within the Louver, in Paris.
Most folks haven’t been to Louver but we all know what Mona Lisa seems like. We do so because there are countless reproductions of the painting in various ways:
it’s recorded on video, it’s been printed on posters, postcards, T-shirts, clocks, and on any imaginable surface.
A Mona Lisa but not The Mona Lisa
To take it a step further, a master of art could create such a flawless replica that no human eye could tell between the first and therefore the replica.
But still, the one in Louver would remain the first – the Mona Lisa – regardless of what percentage of other Mona Lisas are or how identical they were.
Now, what happens with NFTs is pretty similar. Only at this point, do the lines become even thinner. Because the digital world is a smaller amount of tangible than the physical world.
Are you beginning to understand the NFT world a touch better now?
Original pieces of art would move, for a hefty price in auction houses.
Now, NTFS move, for a hefty price, on NFT marketplaces.
And the technology used for keeping track of those NFT purchases is blockchain.
BOOM! We just squared the circle! Now you recognize all the fundamentals
This means that we will advance to the business side of NFTs. Shall we?
What Do NFTs Mean for Your Businesses?
You probably know a minimum of one example where a well-liked brand used NFT for a marketing campaign that created a buzz.
We’ve also included 5 such instances where well-known brands leveraged NFTs for their campaigns, within the last chapter of this text.
Nonetheless, regardless of what percentage of case studies from multinational companies we publish, this probably won’t assist you to answer What can NFTs do for my business?
NFTs can impact the marketing of a little business in several ways, like:
- Build brand awareness
- Expand its audience reach
- Promote events
- Drive pre-orders
- Support an honest cause
NFTs are blurring the road between art and technology. Being a fresh concept, definitely NFTs bring a particular novelty to the table.
Big brands have shown what they will do with it. Now, smaller brands and businesses are looking to seek out how NFTs, NFT marketing, and blockchain technology will help them. Are you one among them?