Tal Hacmon
January 16, 2022

NFTs: What they are and how they'll impact the creator economy

The creator economy is changing the way that business is done. The traditional model of an artist creating their work and then selling it to a buyer who will profit from the purchase has been turned on its head by platforms like nfts. Artists can now create content, get paid for it immediately with nfts tokens, and share in any additional profits generated through increased demand or increased nfts token prices. This blog post talks about how nfts is driving this change in the creative economy.

So, what are NFTS?

Non-fungible tokens are a new type of crypto asset that is made to be unique. They can be anything from digital artwork/digital art to collectible cards, and they have the potential to change how creators earn money by allowing for more control over their work. For example, let's say you create a digital painting. With NFTs, you could sell that painting as an individual asset on an NFT marketplace, rather than selling it as part of a set or package. This would give buyers more flexibility in how they acquire your work, and it could also allow you to charge a higher price for your paintings. Additionally, NFTs could be used to create digital assetplaces where collectors could buy and sell artwork and other digital items. 

Why are non-fungible tokens important?

Non Fungible tokens represent a change in how crypto works in comparison to traditional cryptocurrency. Modern Financial services system uses sophisticated trade and loan technology to deal with diverse asset types, such as properties loans, contracts, artwork loans, and other types of commercial loans. Transforming physical assets for computers streamlines process and eliminates intermediaries. NFT-based art displays can be created online without having to have an agent and eliminate this requirement and artists get directly into contact and interaction with audiences. This can help reduce administrative tasks and enhance the processes to process an electronic passport. 

How do NFT’s work? 

NFTs are made on blockchains, so they can be traded and used in smart contracts. They're also cryptographically unique, which means that each NFT is represented by a specific address within the blockchain rather than being an interchangeable item like a crypto token or coin. This gives artists more control over how their work is used, because they can decide which addresses certain pieces of art are assigned to. Non-fungible tokens are created using a technology called ERC-712, which is based on the ERC-20 standard for Ethereum tokens. This means that nfts can be stored and transferred using wallets like Metamask, Ledger, or Trezor. ERC-712 defines a new type of token that is specifically designed for non-fungible assets. This token has three important properties: - Each nft is unique and cannot be replaced by another nft of the same kind - nfts are inheritable, meaning they can be passed down to heirs - nfts can be traded on decentralized marketplaces

How are NFT’s different from crypto tokens? 

NFTs share some similarities with crypto tokens that are intended for use as currency or money on blockchain networks. Both NFT's and crypto tokens have unique addresses within a blockchain network, which allows them to be stored and used in smart contracts. However, nfts are specifically designed for non-fungible assets while crypto tokens can be used to represent any type of asset. Another key difference is that nfts are not interchangeable. If you own an nft, it's because you own the specific asset that is represented by that nft. This is not the case with crypto tokens, which are fungible assets that can be traded for other types of nfts or coins.

How do you make an NFT?

Nft is created when you mint it. You can mint nft by using the nft command in any nft-powered wallet, like nTrust. To create an NFT, you need a blockchain platform that supports NFTs. There are several platforms that support NFTs, including Ethereum and EOS. You also need a tool called a "smart contract". A smart contract is a piece of code that's built into the NFT. It contains information about what an NFT represents and how it can be traded. Once you have these two things, you can create your NFT! You'll need to use a blockchain explorer to upload the contract and transfer tokens from one wallet to another. The whole process is pretty straightforward. NFTs can also be traded on secondary markets like OpenSea and OPSkins, which makes them more accessible to users who may not understand how blockchain works. With nfts, you can create and trade digital representations of your favorite things by putting them on-chain. In other words, nft is a new type of crypto asset that lives on the blockchain as an ERC-20 token or another kind of compatible Ethereum token (e.g., SiaCashCoin). There are many possibilities for nft׳s, but they will likely first appear on decentralized marketplaces where users can buy and sell nft assets. For example, you might open up your wallet or app to find an nft that represents rare collectibles.

Ok I get it, now what the hell is the creator economy? 

The term "creator economy" refers to a new business model for artists and content creators that emphasizes direct-to-consumer transactions instead of working with big publishers or galleries. This acquisition method has become increasingly popular in recent years as the internet has made it easier for creators to reach new audiences. The creator economy is supported by a number of technologies and platforms that make it easier for artists to sell their work, including crowdfunding services, online marketplaces, and digital asset management tools. NFTs are likely to play a big role in the future of the creator economy because they can be used to simplify both selling and buying nft׳s. 

Some examples: 

Non-fungible tokens can be digitally represented to anyone on the world wide web based on digital art or real property. Other examples are those assets represented by NFT like avatars and collectible digital or nondigital domain registration and show tickets. The digital artist Beeple is a great example of how nfts can be used to create digital art. His work is often featured in galleries and he has even been commissioned by companies like Intel and Nike. Beeple also sold an NFT for $69 million through a first-of-its-kind NFT auction at Christie’s Another example is Decentraland which is a virtual reality platform that allows users to create, experience, and monetize content and applications. NFTs can be used to represent land in Decentraland.

How does it all affect content creators? 

Non-fungible tokens could give artists more control over how their work is used and sold online, while also giving collectors better value for nft׳s they purchase. NFT's are still a relatively new technology, so it will take some time to see how the creator economy responds to NFTs and this shift in a digital asset or digital artwork ownership and management. NFTs are going to play a big role in the creator economy. They're a way of representing digital assets on blockchain platforms, and they offer a lot of advantages for artists and other creators. For one thing, nfts are unique and can't be replicated. This makes them more secure and valuable since they can't be copied by hackers. They also have a fixed supply, so nft owners can be confident they won't lose value or see it diluted by inflation like fiat currencies. Lastly, nfts are easy to store and trade because their format is digital. Their unique identifiers make them easier for wallets and exchanges to track than other cryptocurrency assets that often look alike once you take them off the blockchain.

What are the potential implications of NFTs for content creators?

Non-fungible tokens have the potential to revolutionize how creators earn money. They allow for more control over digital assets, and they could create new opportunities for selling and trading artwork and other digital items. In the future, nfts could become an important part of the creator economy. They could be used to create digital asset places where creators can sell their work, and they could also help to support new forms of content creation and distribution. We'll have to wait and see how nfts develop over time, but they certainly have the potential to change the creator economy.

Ok, I get the picture but still why should I care about NFTs?

You should care about nfts since nft's are a way of generating digital scarcity. This allows creators to make nfts that are rare and valuable. nft tokens are independent pieces of digital content, which means they can be exchanged or traded without any confusion about the value. nft's also work well with digital wallets, making transactions easier for creators. nft's also provide more control over your digital content. nfts are non-fungible tokens that you can mint, share or sell in fractions or multiples of the whole nft token! The nft economy is growing rapidly with many projects popping up to use nfts for their own purposes (e.g., Rare Pepes, nft art, nfts for music and much more). Nft's will allow creators to make digital scarcity a reality. The creator ec

If you are a creator you need to understand NFT’s now 

The creator economy will be influenced by nfts as they allow for more control over digital creations. This will give creators more power to generate income and recognition for their work. nfts are also a way of generating digital scarcity, which will make creations more valuable. As nfts become more popular, the creator economy will grow and change in exciting ways! nft's are the way of this new digital future, so you should get to know nfts. 

Our final thoughts - Why you creators should pay attention to this new technology 

Creators should pay attention to nfts because they offer a new way to generate income and control digital creations. nfts are also a way of generating digital scarcity, which will make creations more valuable. As nfts become more popular, the creator economy will grow and change in exciting ways! nft's are the way of this new digital future, so you should get to know nfts. Now that you know a little more about nfts and their potential to shape the creator economy, be sure to check out nTrust to learn more! nTrust is a digital wallet that allows you to store, buy, sell and trade nfts with ease. You can also use nTrust to manage your other crypto assets securely and easily.

Supercreator conclusion 

We are living in a time where creators of all types are being rewarded for their work. The economy has shifted to reward the people who create, not those that control or distribute what they make. This is why it’s important for you as an artist to be aware of new trends and development within this rapidly growing industry. Make sure your ideas can compete with other similar products by getting into the game! 

If you want more information about how these shifts will affect creatives like yourself, check out our blog or follow us on social media channels so we can keep you up-to-date on changing trends related to creator economics.