[Hello, Blockchain] A New Market Created by NFTs
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Clip Art Korea
[New Normal-Hello, Blockchain] Kim Ki-man | Deputy Editor of <Coin Desk Korea>
"It's not like we're doing something bad. There still seems to be a lot of preconceptions linking it to the word 'coin'."
A writer I met recently said he wanted to change people's preconceptions about NFTs. His motto is "I will communicate with fans joyfully through art." The artist, who recently signed an exclusive contract with a famous art company, will hold a private exhibition later this month. He plans to hold a party with people who own or purchase his work.
His work is traded in the form of an irreplaceable token on the Ethereum network. Those who purchased the work also use it as a profile picture showing their identity on social networking services (SNS). They build friendships and form communities by calling each other 'fam'. The artist shares and exchanges his studio with his family. Social network services and irreplaceable tokens met to create a new art consumption behavior.
In fact, the term irreplaceable token is not easy to understand. To understand this, it may be faster to look at alternative tokens first. Replaceable tokens literally mean replaceable tokens. One bitcoin is one bitcoin. It is the same as not particularly distinguished when paying 10,000 won bills in commerce.
On the other hand, irreplaceable tokens cannot be replaced. Just as each apple has a different shape and size, each token can be distinguished. A(a)1 token and A2 token are not exchanged. Using an irreplaceable token, a unique serial number can be assigned to each individual picture.
Non-replaceable tokens allow ownership of digital files to be recorded on the blockchain. It's like an online registry office. Digital image files can be copied by anyone, but there is only one non-replaceable token owner.
Secondary transactions can also become active if they are traded based on blockchain. Since the non-replaceable token has been issued, every additional transaction will leave all records on the blockchain, so you can receive a fee for each transaction. It is possible to design a structure in which royalty income is returned to creators.
As the bubble in the virtual asset (cryptocurrency) market burst last year, interest in the non-replaceable token market also decreased a lot. However, the amount of transactions increased. According to NFTGo, a platform specializing in data, cumulative transactions increased from $15.2 billion in 2021 to $24.3 billion last year.
Global companies continue to expand into non-fungible token markets. Starbucks provides special benefits by issuing non-replaceable tokens to loyal customers. Nike also issues and sells virtual sneakers in the form of non-replaceable tokens. Nike earned $185 million (about 240 billion won) from virtual sneakers last year.
It is continuing to enter the non-replaceable token market in Korea. LG Electronics introduced its non-replaceable token shoes "Monster Shoes" at the CES held in Las Vegas earlier this year. It has made it possible to collect and appreciate 5,500 unique designs of virtual shoes. SK Planet plans to introduce 'OK Cashback Membership Irreplaceable Token' next month.
There are also attempts to use irreplaceable tokens in the game industry. Yuga Labs, famous for its "Bored Monkey Yacht Club" (BAYC), is building a metaverse game based on their intellectual property (IP). It can be seen that it is building a worldview beyond simple pictures or characters.
The market for non-fungible tokens is still in its infancy. It is also true that entry barriers are high for ordinary users to create and actually use virtual asset wallets. However, it is an essential technology to prove ownership and actively trade online. This is why non-replaceable tokens are expected to meet with various industries to create synergy.
