NFT's: Owning the Physical and the Digital

August 19, 2023

In recent years, the term "NFT" has taken the digital world by storm.
Non-fungible tokens, or NFTs, have revolutionised the way we think about ownership, bridging the gap between the digital and physical realms.
As we offer our customers the ability to own the physical and the digital versions of our creations, this blog post delves into the world of NFTs, explaining what they are and how owning an NFT version of a physical product can benefit.

What Is An NFT?
At its core, an NFT (Non-Fungible Token) is like a digital certificate of ownership.
Think of it as a special, one-of-a-kind digital sticker that you can stick on something to prove that you own it. But instead of sticking it on your bicycle or a book, you stick it on a digital file, like a piece of artwork, music, a video, or even a tweet.

How Does an NFT Work?
Unique and Special: The "non-fungible" part means that each NFT is unique. It's like having a super fancy trading card with your favourite character on it. No one else's card is exactly the same.

Blockchain Magic: NFTs use something called blockchain technology. It's like a super-secure digital ledger that keeps track of who owns what. It's nearly impossible to fake or copy.

Digital Ownership: When you buy an NFT, you're saying, "Hey, I own this digital thing, and it's official because my ownership is recorded on the blockchain."

Provenance and Value: The fact that the ownership is recorded on the blockchain adds extra trust and value. It's like having a famous artist sign a painting – it proves it's the real deal.

Benefits of Owning an NFT Version of a Physical Product

Provenance and Authenticity:
One of the primary advantages of owning an NFT version of a physical product is the assurance of provenance and authenticity. NFTs are immutable and transparent, making it nearly impossible to counterfeit or manipulate ownership records. For collectors of art, rare items, or memorabilia, this can be a game-changer. You can verify the legitimacy of a physical product by simply checking its associated NFT, which offers peace of mind for both buyers and sellers.

Enhanced Ownership Experience:
NFTs can augment the traditional ownership experience. When you own an NFT associated with a physical item, it often comes with exclusive content or experiences. For instance, buying an NFT for a limited edition vinyl record may also grant you access to a private concert, a digital art piece, or behind-the-scenes footage related to the album. This enhances the overall value and enjoyment of your ownership.

Fractional Ownership:
NFTs can enable fractional ownership, allowing multiple individuals to invest in high-value assets collectively. For instance, an expensive piece of real estate, fine art, or a vintage car can be tokenised into smaller NFTs, making it accessible to a wider pool of investors. This democratises ownership and provides more people with the opportunity to share in the value of these physical assets - just like owning a fraction of a Tesla share for example.

Global Resale Markets:
Owning an NFT version of a physical product can grant you access to a global resale market. If you decide to sell or trade your NFT, you can reach potential buyers from around the world, thus increasing the liquidity of your physical assets. This global marketplace can lead to competitive pricing, ensuring that you receive fair value for your investment.

Immersive Collecting:
NFTs transform collecting into an immersive and interactive experience. Digital galleries and platforms enable collectors to showcase their NFT-linked physical items in virtual spaces, allowing them to share their passion with a broader audience. Moreover, NFTs facilitate easy transfer of ownership, making it simple to trade, gift, or bequeath assets to future generations.

Conclusion:
The rise of NFTs has introduced a paradigm shift in ownership, allowing consumers to have a digital representation of their physical possessions. This innovation not only guarantees authenticity but also offers new levels of interaction, accessibility, and financial possibilities.
While the NFT landscape continues to evolve, the benefits of owning NFT versions of physical products are clear, making it an exciting option for those who wish to explore the future of ownership in our increasingly digital world.