Social media platforms are being revolutionized by NFTs (non fungible tokens) which gives the users possibility to sell, showcase and trade digital assets in a completely new way. Twitter, Instagram and Reddit are integrating NFTs to give users the ability to showcase unique digital items like profile photos, artworks and so on, to provide more user engagement and new monetization possibilities.
What are NFTs?
Digital tokens which represent ownership of a unique digital item such as art, music, or videos. Unlike with cryptocurrency, which is fungible and identical to one another, each NFT is unique in its own value, based on rarity, popularity, and demand.
How NFTs Are Changing Social Media
NFTs are becoming spaces for the flourishing of social media platforms. NFTs can be used by users to display artwork, showcase their NFTs as profile pictures or trade digital collectibles. NFTs give users more ownership of their digital content; giving them the ability to earn money from their creations and the right to hold the ownership. The NFT marketplaces or NFT backed features also benefit platforms by way of generating a new revenue stream and increasing user engagement.
Top Benefits of NFT done on Social Media
- User Control: NFTs built on blockchain give users control over how their digital creations can be used, shared or monetized. It’s the opposite of what traditional platforms do when content is almost fully controlled by the platform.
- Identity Management: The NFTs connected to user’s online identity serve as a means to verify and authenticate a user across different platforms while lowering the risk for fraud and fraud impersonation.
- Monetization: Artists, influencers and creators can sell their work directly to buyers with a cut to themselves, the need for middlemen removed. But if they’re resold in the future, they can also earn royalties.
- Content Collaboration: NFTs let groups build together on projects. One piece of content can be created by many people. They can also share the revenue via smart contracts.
Platforms Adopting NFTs
- Twitter: Twitter lets users set NFT-backed profile pictures and recently launched “Super Follows,” which offers exclusive content like NFTs to subscribers.
- Instagram: Instagram is testing an NFT feature allowing creators to display NFTs on their profiles, potentially enabling in-app NFT sales.
- Reddit: Reddit’s point system suggests that digital assets exclusive to each of its subreddits will be tokenized in the near future as NFTs.
- YouTube: An NFT marketplace is being developed by YouTube that will allow creators to tokenize videos and music.
The Future of NFTs in Social Media
They are a fun way that digital content is being valued and monetized. As new platforms incorporate NFT capabilities, we will see creators experiment with new methods of generating revenue from digital assets. But the energy intensive blockchain networks are a problem in terms of environmental impact. NFTs are going to become bigger role in social media. Digital ownership and content creation will change how people see them.
Link to Original Article: How NFTs Are Transforming Social Media Platforms
