What is an NFT Video?
NFT, blockchain technology, cryptocurrency, and a variety of other terms are commonly thrown around these days, especially online. What do they all mean? What is an NFT video and what is the purpose of NFT video production? We’re breaking down the basics, to help you understand how NFTs work and what NFT videos mean for your business or brand.
If an NFT is a non-fungible token, which is unique and valuable without an equal like item for trade, then an NFT video must be a video of value that is unique and without a tradable counterpart, but there must be more to it. What is an NFT video exactly?
At Beverly Boy Productions, we’re just as new to the idea of NFTs and cryptocurrency as our clients are, but we’ve done our homework, and when it comes to producing videos, we’re pros with more than two decades of experience! So when clients ask us, “What is an NFT video,” we’re quick to provide an answer! It starts with an understanding of NFTs.
What is an NFT?
NFT stands for Non-fungible token, but if you’re like most of us, that doesn’t really help a whole lot in regards to providing understanding as to what an NFT actually IS. What exactly is a “non-fungible token?”
Fungible vs. Non-Fungible
The terms “fungible” and “non-fungible” are actually quite simple to understand. Something that is fungible can be exchanged with something else of equivalent value and style. Something that is non-fungible does not have an equivalent counterpart to be traded or exchanged.
The term “non-fungible token” or NFT essentially means that it is something that is unique for which there is no replacement or, it’s one of a kind. Now you’re probably thinking, there are lots of things that are unique or one of a kind and that do not have a replacement, and that’s true! So what makes one unique, one of a kind “thing” verses another unique, one of a kind “thing” any different? Or more importantly, what is it that makes these “unique” and one of a kind “things” NFTs?
The way NFTs work is they act like proof of ownership of these one of a kind things. So for instance, bitcoin is considered fungible, because it’s NOT one of a kind. You can trade a bitcoin for a bitcoin, and you will have the same thing when you start and when you end – a bitcoin. But when you trade NFTs you’re starting with one specific NFT and ending with another, the two NFTs are not the same. They’re sort of like minted trading cards. Even if you had two minted Michael Jordan trading cards, they would not be the same. They might both be Michael Jordan, but each card is going to have unique elements. So if you were to trade them, you would NOT be left with the same thing when you were done. This goes for NFTs too.
NFTs vs. Trading Cards & Other Unique Items
You’re probably wondering how all of this works and what it is that makes NFTs any different than a trading card or any other unique item. The NFT is part of the cryptocurrency blockchain derived from Ethereum. If you’ve never heard of Ethereum before, it’s a cryptocurrency just like bitcoin is! While Ethereum was the first blockchain cryptocurrency to instill NFTs, many other blockchains have since initiated their own NFT versions. Each NFT, of course, is different and there is one and only one ever made of each which is what makes them so potentially valuable.
NFTs include a wide variety of digital works including digital art, digital downloads, digital music, or even artificial intelligence if that’s what someone wants to form into an NFT. Similar to a trading card, an NFT is valuable and one-of-a-kind. For the most part, NFTs are about “fine art” collectibles in the digital “meta” verse.
What is an NFT Video?
NFT video is very simple, its short video clips that are backed by the protection of the NFT stamp of value. What it means is, when a creator produces a video, and sells a video NFT, they’re saying that the individual who owns the NFT is the one and only owner of the video clip associated with that NFT.
Essentially, the NFT gives you ownership of the digital video file. When an NFT video is sold, the original artist retains the copyright and reproduction rights to the video, but only one person can own the original use rights or the original NFT. Each NFT video is a unique token on the blockchain that only one individual can own at a given time.
While the original video, and associated NFT on the blockchain, holds value, not all NFT videos are profitable. Just like any other collectible, digital collectibles are as valuable as their creators. Generally, any digital video could be sold as an NFT, and just because an NFT video is sold, does not necessarily make it valuable. The value comes from the creator, the desire among the audience to stake a share of ownership, and the basic economics of supply and demand – the more unique a video and its artist is, the more valuable the NFT will be.
So, what is an NFT video? It’s technically just a log in the ledge of the blockchain stating that a particular individual owns the rights to a digital video. An NFT video is one of a kind, irreplaceable as a collectible crypto asset.