According to Investopedia, NFT or non-fungible tokens are assets that have been tokenized via a blockchain. In this article, we would like to share how NFTs can help communities by providing a source of income through the creation and sale of unique digital assets promoting cultural exchange, supporting innovation and entrepreneurship, enhancing identity and branding, and promoting social impact these actions can potentially lead to increased economic activity that benefit individuals and communities. In detail, here are the key insights that can help us learn more about its impact to our society:
Empowered creative communities. NFTs allow artists to sell digital art directly to their fans which means they get to keep a larger portion of the revenue this empowers communities of artists musicians and other creatives earn money from their work and pursue their passions without needing to rely on centralized intermediaries controlled by larger media companies this new economic model greatly benefits smaller creative communities where the creators can receive collections or creations straight from consumers.
Economic growth. NFT can help stimulate economic growth by creating new markets for innovative expression. If artists can monetize through NFT they will be more likely to produce and share their work with a wider audience, this would lead to job creation and stimulate economic activity in the surrounding community.
Democratic ownership. NFTs enable collectors to own a non-fungible investment that they can trade freely on various blockchain-based marketplaces. Recorded on the blockchain making it completely clear and accessible to anyone this democratizes the control of valuable investment as anyone can participate in this market. NFTs are already being used to revolutionize the gaming industry which unlike most other industries has allowed the distribution of assets ownership among the community.
Increased clarity. NFTs enable complete transparency in the exchange process which is a positive development for communities that have historically been marginalized or underrepresented in the world of art and culture. NFTs create a transparent economic model where these communities get to keep a greater share of the revenue from their work.
New business models. NFTs create new business models for creative communities. NFTs allow creators to monetize their digital content such as art, music, or even tweets which can be sold on blockchain-based marketplaces. This creates new ways for artists to earn revenue while also offering novel investment opportunities for collectors creating a new economy with a different demand and asset model as these markets continue to grow, they will bring new economic activity to the creative communities they serve.
NFTs, if capitalized with relevance to the needs of communities, it can bring wonderful impact in alleviating poverty. To learn more on how to start an NFT-based business model, visit us today to explore opportunities here.