What are NFTs?
NFT is short for non-fungible token. Fungible means something that can be replaced and hold the same value. Money is the best example of fungible. You could replace 10 dollar bill with two 5 dollar bill. But NFT, which is a token, is not replaceable by anything. It is always going to be unique.
What is the purpose of this token? This token is a gibberish code that stores a url. This url is where you would store any digital asset – images, 3D models, audios and videos. A popular example of digital asset would be artworks, which is where NFT got its fame. Because NFT are not replaceable, only you will own that NFT and whatever the NFT holds.
Where does NFT fit in Augmented Reality?
At the core, augmented reality is just overlaying 2D or 3D objects on the screen. This is what gives the feeling of a mixed reality. It is these virtual objects that can benefit from NFT. Instead of using NFT on a digital artwork, you can use NFT on 3D models that can be viewed using augment reality. Basically a token that points to a 3D model rather than an image.
Why use NFT in Augmented Reality
1. Ownership
The same reason that made NFT popular can be applied in augmented reality as well. An NFT can hold a link to a digital asset like artwork and 3D model. This 3D model can be viewed in Augmented Reality. You can then claim the ownership on a 3D model.
For example, say an online store has a URL that anyone can access to download a 3D model. You then bought the 3D model from that online store. The online store provides you an NFT that points to that URL. While Bob, a patron of the online store, just downloads the 3D model.
But notice the difference. Bob can get a copy of the 3D model but you can get the copy and you have the NFT as well. That makes you different from Bob because you are the owner of that 3D model.
“Oh, so you mean I can claim copyright?”. Whoops I’m afraid not. The copyright is reserved to the creator – the online store.
“Wait, then why would I need this ownership if everyone has access to my 3D model and the copyright is reserved to the creator?”
“Why would I need to own a digital artwork if I can just screenshot it?”
The short answer is: There is no significant reason. If you value ownership without copyrights, then it would be significant. But there are ways you could benefit from NFTs in Augmented Reality without the ownership sentiment. I’ll explain those in the following sections.
Related: AR, NFTs and Hololoot: An Explanation for your Grandparents
2. Trading
Trading is a common practice for centuries. Forex, stocks and cryptocurrency trading are examples of the modern era. NFTs are also applicable for such trading. In fact, this is what keeps the NFT community thriving.
For example, OpenSea is a platform for users to sell and buy NFT using cryptocurrencies. Images, 3D models and even audios could sell up to thousands of dollars if not millions. OpenSea is so popular that they terminated the affiliate marketing program and I can’t profit from it.
The process is simple. First, you upload an NFT item – could be an image, video or a 3D model. You set a price for that NFT. You wait until someone buys it from you. The buyer will become the new owner and sell that NFT for hopefully a higher price.
Optionally, you can set a percentage for creator earnings – the percentage of which the creator will earn for every subsequent sale. You cannot benefit from this if you are not the uploader or creator and you are reselling.
3. Marketing and Sales
Are you looking for ways to promote your business ? Then Augmented Reality + NFT is the way to go.
What makes a business popular is the trend of their products. Augment Reality still struggles its way to the crowd because of lack of applications. But it is still a relatively trending concept. Combine that with already popular concepts like NFT, you get the best marketing tool.
Here are some example using NFT alone. Samsung is planning to integrate an NFT marketplace – a place to buy and sell NFT like OpenSea. This idea had generated a lot of attention due to the popularity of NFTs.
Gucci collaborated with Superplastic to sell SuperGucci NFT. Basically, they are a bunch of images and videos that sold up to 30 ETH (46,985 USD) on OpenSea. The total revenue generated which includes SuperGucci and the resellers is 6,332 ETH (9,917,051 USD).
Here is an example to exploit NFT with Augmented Reality in your business. Sell 3D model NFTs using Augmented Reality. Show case your 3D models using QR codes that links to a url. The url should display that 3D model using Augmented Reality. This way, besides driving sales using Augmented Reality and NFT, your business brand will grow following the sale’s success.
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