Non Fungible Tokens (NFTs)

So you’ve heard of it, but what is it?

The video game industry has been developing new technologies, and it has been the first to adopt virtual and augmented reality. This aligns well with fashion’s drive for a more sustainable future, in terms of shows and showrooms. The recreation of environments ever closer to reality offers the player and consumers a unique interactive experience. The fashion industry is going in the same direction, investing in technologies that can make the customer journey unforgettable, combining online and offline.

Non-fungible tokens (NFTs) for example, is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable [1]. It offers new ways for consumers to collect, wear and trade fashion online, and now that most fashion shows have scaled back or gone virtual, they may become an important tool for the industry.

Some of the most profitable NFTs are produced by celebrities such as Jack Dorsey The CEO of Twitter and American Socialite Paris Hilton, so it makes sense that music corporations, fashion brands and designers are venturing into the NFT market as well. Sneaker brand RTFKT Studios garnered $3.1 million in seven minutes by selling crypto collectibles [2]. In December 2020, NFT startup Enjin partnered with Netherlands-based fashion house The Fabricant on a virtual collection. Real-life fashion brands use NFTs for marketing in virtual worlds like Minecraft, plus several Atari and Microsoft video games.

The fundamental value NFTs offer to bridge virtual fashion items with video games is the option to secure custody of the item for use in other games or mobile apps [3].

Discuss

• In your own words, what is your understanding of NFT’s?
• Are you a gamer?
• Have you ever bought custom skins?

Share your responses with your peers in the comments below.

References:

1. Wikipedia
2. A crypto-collectible is a cryptographically unique, non-fungible digital asset. Unlike cryptocurrencies, which require all tokens to be identical, each crypto-collectible token is unique or limited in quantity. Typically, crypto-collectibles are visualized as real-life objects such as pets or avatars.
3. Techcrunch.