It has been about a full month since my previous Medium post — Working on lots of exciting new products, services and brands on top of Cudy Technologies. Progress has been stellar till now and I finally found some time to get back to writing. Here is a piece on the NFT space that I had drafted awhile back — I will be posting on a weekly basis from hereon given the time I’m dedicating to the new brands I am building. More info soon… In the meantime, enjoy reading this piece.
Imagine that one day a new economic system will change the way we transfer value from one product/service to another, taking the place of the old economic system. A system where digital goods like songs, digital art, digital games and digital collectibles will be treated as unique assets that can be bought, sold, even traded peer-to-peer with a tokenized representation of the digital good.
As a creator, you might be asking yourself how you should prepare yourself to succeed in this new economic system?
If you are one of the creators that haven’t yet jumped on the NFT bandwagon, this article is for you. It will give you an overview of what NFTs are and how they differ from fungible tokens; it will also give you insights into what opportunities they can provide to creators.
What is a Non-Fungible Token (NFT), and how does it differ from a Fungible Token?
If you have been following the crypto-verse for a while now, you will know that NFTs are a new type of crypto asset which stands for non-fungible token. Looking through all the technical jargon, it boils down to one thing, a token that has a unique attribute.
You can compare this to things like birth certificates, or your passport for example, they are all unique to you and no other person on this planet has your passport number or your birth certificate. This is why I like to use this analogy to help describe NFTs.
This is huge for the digital content industry because it allows for the possibility of tracking ownership of digital content. If you were to think about it, there is a lot of digital content that is currently being created that is not being tracked and can easily be duplicated or stolen.
The music industry is a perfect example of this. We all know that most artists don’t get paid for their work and this is something that has been happening for decades now.
A non-fungible token (NFT) is a token in which each unit is unique to others somehow. A fungible token can be exchanged or substituted for another identical token without any loss of value or effect.
What does this mean for you as a creator?
IJust as you are creating your own digital content, there are a lot of other creators creating their own digital content as well. This means that you will have a lot of competition in the future. If you want to be successful, you are going to have to find ways to stand out from the crowd — NOW.
Although mainstream adoption of NFTs is still a long way off, they are making some serious noise in the crypto-verse right now. You only have to look at some of the big players in the space like Decentraland and CryptoKitties, to see the potential of this new form of digital content.
The rapid growth of the adoption of NFTs by content creators and users alike is a validation of the technology. Platforms have always been the biggest factor in the success of content creators, but as the hype surrounding NFTs increases, I predict that this will change as creators like yourself will always want to make more money and have more control over their content.
As a creator, you need to be aware of this because it means that your products will become more valuable, and this is precisely what you want: To create something that will be worth more in the future.
There has been a lot of talk about the player-creator economy and this is happening right now with all these new NFT platforms. This new economy is being developed by developers and creators of digital content. This new dynamic will allow for a direct relationship between creators and their users. This is a big step and will create a new way of thinking for content creators.
The maker-user economy in the games industry is estimated to be worth USD152 billion. The maker-user economy is made up of companies that create content and distribute it through platforms. These companies are the makers and the users are the players. The players are the end-users who play the games and create value.
The creation of this new economy is going to decentralize the power away from the makers and put it back into the hands of the players. This will keep the players engaged and playing for longer, which is what the makers want to achieve.
The key to the success of this new economy lies in the NFTs. The new NFT platforms will allow users and developers to transfer ownership of digital content. This will allow the players to have a direct relationship with the content creators. This is the first time that we have seen this in the digital content market.
This means that players will be able to get a percentage of the revenue that the content generates. This is the future of the game industry and it is coming soon.
The old way of doing things is a one-way street. Makers create, and players consume. No matter how much creators want to engage with players, it was impossible. Creators were simply not part of the equation.
The new model will integrate both creators and players, creating a player-creator economy that elevates the value of both. Creators are rewarded for their hard work; players are rewarded for their engagement and interaction with the platform This is a win-win situation!
For example, if you’re a creator that makes digital items such as in-game skins, you might be able to sell them on platforms such as OpenSea or Digitalax and create NFTs and build your ecosystem on top of it, you get rewarded for your creativity and have an entire community interacting with your characters/items.
Removing the barriers to NFT creation:
One of the biggest barriers for content creators in the digital content industry is the fear of the technology itself. It is a well-known fact that the creative industry is very slow to adopt new technologies and it can take years for a new technology to be adopted by the mainstream.
If you look at the internet for example, it has been around for decades but it still hasn’t been fully adopted by the mainstream yet. This means that a lot of people such as yourself are still scared to dive into uncharted waters and to be the first to take a plunge into this new territory.
Many creators aren’t aware of NFTs yet or don’t know where to start because they feel intimidated by the technical aspects. They think it is too hard to understand, too expensive to invest in, etc. It doesn’t have to be like this. If we remove these technological and marketing barriers, they will flock towards this new form of artistry and creativity. Creators are the lifeblood of this new economy. Creators will lead the way in terms of innovation and creativity.
Let’s breakdown some of the main barriers to entry for creators:
1. The tech barrier — What is it? How do I use it? Why should I even try?
Blockchain technology is advanced and intimidating. The learning curve can be steep. Creators like yourself don’t want to spend time learning a whole new ecosystem; you want to create!
This is why there are tools to make it easier for creators to get started. These tools will also make the barrier to entry lower for users. Platforms like Digitalax are making it easier for creators to create and users to buy and sell their NFTs. These platforms will help build up a sustainable community around NFTs and creators like you.
2. The marketing barrier — How do I get people to buy my art/tokens?
The key to marketing is building a community around your product. This is what will drive people to buy and use your product. If you don’t know how to build a community or market your products, you won’t sell enough of your creative work based on NFTs.
This is why platforms such as Digitalax are essential to the future of NFTs. They make it easier for creators to build a community around their product and market the product to potential buyers while also making it easier for users to buy digital content in the form of NFTs directly from the creators.
Market development for anti-marketers:
For a long time, there have been some barriers for creators to sell their work. This is especially true for artists and creators who are trying to get started. While the ‘selling’ side might be acceptable, many creators are not comfortable with the ‘marketing’ part of the artistry. The old market development was passive (just create great stuff, and it will sell itself), far from the truth in this new economy!
In this new model, you will be rewarded for your creative work directly. This will be a fundamental shift in how creators think about their careers, as you won’t have to rely on platforms such as OpenSea or RareBits. You won’t have to worry about how much you spend on marketing. What this means is less time spent trying to promote an item/NFT, and more time is spent creating.
The new platform like Digitalax will be the central hub where creators and players can interact and engage around the platform. The number of ways that the player-creator economy can be used is limitless, which means that this will be a fundamental shift in how players (creators) will think about their careers and achieve success.
The only way to truly tap into this player-creator economy is to let the creators control 100% of their creations!
Finding Your Tribe as a Creator:
I am a big fan of having a tribe of people that are passionate about what you are doing. It is important to build a community around your digital content and establish a relationship with your tribe. NFTs will be an important part of that relationship because they will improve the way you interact with your tribe.
The reality is that by creating digital content, you are giving birth to a new form of value. You are helping to create new ways for people to communicate and engage with each other. You are helping to create a new kind of internet where people can connect in a new way and you deserve to be rewarded for that.
Forming your own tribe of player and creators will not only help you to build the NFT community, but will also help you to become a leader in a new creative economy. If you have been reading the news lately, you will know that we are in the middle of a global crisis. I believe that the creative economy is going to be one of the key factors in the economic evolution of the 21st century.
If you want to be a part of the creative economy, you need to start leading it now. You have to start acting like a leader in this space and start creating the kind of content that will help to shape the way that the creative economy will evolve.
It requires that you push through the barriers and not give up when you get knocked down. The best way to do this is to surround yourself with other creators who are also pushing through the barriers.
Take reference from the top creators who are succeeding where you are struggling. Focus instead on the opportunities you see in front of you and start growing your brand.
To render high-quality original content, you need to be hungry. You will get rejected, and at some point, you will feel as though you are banging your head against the wall.
You will need to break through the barrier and learn how to embrace the future. You will have to learn to find ways to stand out from the crowd and find new ways to connect with your tribe. You will have to find ways to continue to be creative and keep creating content that will help people to have a better experience with each other and grow as a digital creator in the new NFT creative economy.
About the Author
I am the Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students learn better. I am also a mentor and angel investor in other Startups of my other interests (Proptech, Fintech, HRtech, Ride-hailing, C2C marketplaces, and SaaS). You can also find me on Cudy for early-stage Startup Founder mentorship and advice.
You can connect with me on Linkedin (https://www.linkedin.com/in/alexanderlhk) and let me know that you are a reader of my Medium posts in your invitation message.