Non-fungible tokens (NFTs) are cryptographic assets on a blockchain (in our case Ethereum and Polygon) with unique identification code and metadata that distinguish them from each other. This means that each NFT can be completely unique and it’s stored information is immutable for ever.
What are NFT's and their use in Pro Sports?
NFTs have the potential for several use cases. For example, they are an ideal vehicle to digitally represent real world assets like artwork or memorabilia and capture unique moments in time. Because they are based on decentralized blockchain networks, NFTs can also work to remove many intermediaries and directly connect Teams & Players with their audiences, simplify transactions, and open access to create new digital markets. Think of it like a digital certification or ownership.
Much of the current market for NFTs is centered around collectibles, such as digital artwork, sports cards, and rarities. Perhaps the most hyped space is NBA Top Shot, a place to collect tokenized NBA moments in digital card form. Some of these cards have sold for millions of dollars. Others like Twitter’s Jack Dorsey have gone to capture unique moments in time like the “first tweet ever”, in which he wrote: “just setting up my twttr.” The NFT version of this tweet sold for more than $2.9 million
NFTs shift the crypto paradigm by making each token unique and irreplaceable. They are digital representations of real world assets and have been likened to digital passports because each token contains a unique, non-transferable identity to distinguish it from others. They are also extensible, meaning you can combine one NFT with another to “breed” a third, unique NFT. A fully dynamic system, for ever.