Impact of non-fungible tokens on traditional businesses

Add links
From Wikipedia, the free encyclopedia
NFT token sample

The impact of Non-Fungible Tokens (NFTs) on traditional businesses is quantifiable in several distinct operational, transactional, and economic variables within multiple industry sectors. NFTs, characterized by their indivisibility and uniqueness, are registered on a blockchain.

Impact across industries[edit]

Art and collectibles[edit]

VeKings art

NFTs facilitate the buying, selling, and ownership of digital art on blockchain platforms, enabling artists to monetize their digital creations without physical reproduction. NFTs have enabled a notable shift in the economic dynamics of digital art transactions, allowing artists to receive compensation that potentially reflects the market value of their work more accurately.[1]

NFTs are also utilized to denote ownership of physical art, enabling digitization of ownership and transaction logs.[2][3]

Music industry[edit]

Utilizing smart contracts, NFTs can automate the distribution of royalties upon secondary sales, ensuring artists obtain a predetermined percentage.[4] The embedded smart contracts within NFTs enable transparent and pre-agreed upon royalty distributions, reducing potential disputes and ensuring that original creators are compensated for subsequent sales.[5] This transparency and assurance of financial compensation upon resale is a novel development in compensatory mechanisms within the music industry.>[6]

Gaming[edit]

Game developers leverage NFT sales as a financing mechanism, providing early backers with unique, often utility-based, digital assets.[7]

References[edit]

  1. ^ Hasan, Haya R.; Madine, Mohammad; Yaqoob, Ibrar; Salah, Khaled; Jayaraman, Raja; Boscovic, Dragan (2023-09-01). "Using NFTs for ownership management of digital twins and for proof of delivery of their physical assets". Future Generation Computer Systems. 146: 1–17. doi:10.1016/j.future.2023.03.047. ISSN 0167-739X.
  2. ^ "Physical NFT". magazine.urth.co. Retrieved 2023-10-05.
  3. ^ "Mphasis | Exploring the Intersection of Physical Art and NFTs". www.mphasis.com. Retrieved 2023-10-05.
  4. ^ Rauman, Bradley (2021-04-01). "The Budding Disruption of Blockchain Technology Upon the Current Structure of the Music Industry". Senior Theses: 1–40.
  5. ^ Folgieri, Raffaella; Arnold, Paul; Buda, Alessandro Giuseppe (2022-07-01). "NFTs In Music Industry: Potentiality and Challenge". BCS Learning & Development: 63–64. doi:10.14236/ewic/EVA2022.14. hdl:2434/1016808. {{cite journal}}: Cite journal requires |journal= (help)
  6. ^ Verma, Manish (2022). "Integration of Blockchain in Music Industry". International Journal of Trend in Scientific Research and Development (IJTSRD). 6 (3) – via ijtsrd.com.
  7. ^ David J. Kappos, Partner and Co-Chair of the IP Practice at Cravath; D. Scott Bennett, Partner at Cravath; Michael E. Mariani, Partner at Cravath; Sasha Rosenthal-Larrea, Partner at Cravath; Daniel M. Barabander, Associate at Cravath; Callum A. F. Sproule, Associate at Cravath (2023-01-10). "NFTs, Incentives and Control: Technical Mechanisms and Intellectual Property Rights". Stanford Journal of Blockchain Law & Policy.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Impact_of_non-fungible_tokens_on_traditional_businesses&oldid=1193631401"