May 25, 2023
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NFTs

What is an NFT?

Exploring Non-Fungible Tokens and Their Impact on Digital Content

Fraser Bell
CMO

NFTs are a hot topic in the world of crypto and digital art. But what exactly are they, and how do they work? In this article, we’ll explore the world of non-fungible tokens and their impact on digital content. We'll also take a look at MintStars, which provides a platform for creators to mint their content as NFTs.

Beeple’s NFT collage, Everydays: The First 5000 Days
An example of an artwork sold as NFT. Beeple’s collage, Everydays: The First 5000 Days, sold at Christie’s for $69 million

What is an NFT and how does it work?

Since 2021, NFTs have been a hot topic in the world of digital assets, with celebrities and top creators such as Justin Bieber, Snoop Dogg, Jimmy Kimmel, and Mr. Beast showcasing their favorite NFTs on their social media profiles and discussing them publicly.

But what is an NFT? The acronym stands for Non-Fungible Tokens. They are a type of crypto that lives on the blockchain and they can represent almost anything. Cryptos like Bitcoin are fungible tokens. They are digital assets that can be exchanged, traded, or replaced with another token of the same type and value, as they are mutually interchangeable.

As the name suggests, NFTs are in most cases unique and cannot be directly exchanged, traded, or replaced with another token of the same type and value. Each NFT represents a distinct digital item, such as art, collectibles, music, videos, etc.

In most cases they are not interchangeable but some NFTs can be. There are two main standards for NFTs:

  • ERC-721 where each NFT is different and represents a unique digital collectible.
  • ERC-1155 where all the NFTs are similar. This particular standard is used by artists and creators who want to distribute multiple editions of a single piece of art. (E.g: Adidas Originals - Into The Metaverse collection)

No matter the underlying standard, NFTs present creators with the opportunity to distribute digital collectibles to their supporters and monetise their creative output. Logan Paul, a well-known YouTube celebrity, established The 99 Originals to engage with a niche segment of his fanbase.

Other celebrities such as Steve Aoki, Steve Aoki, Grimes or 3LAU also released their own NFT collections and were able to generate millions of dollars in revenue. Digital collectibles are set to become the next big trend for creators to take full ownership of their content and creations while giving them a new source of income.

What is an NFT platform?

NFT platforms facilitate the creation and sale of non-fungible tokens by interacting with blockchain technology, with each platform catering to specific use cases.

Currently, OpenSea is the most popular platform, enabling creators and artists to publish their NFTs on the blockchain and sell their digital content.

Various purchasing methods are available for fans and collectors, such as buying NFTs at a fixed price or participating in auctions, like those held for Logan Paul's 99 Originals collection.

However, existing platforms primarily focus on direct sales of NFTs and do not offer a subscription-based model where creators can provide NFT rewards to their fans. This limitation may be an issue for creators who have fans interested in supporting them through a subscription model, similar to platforms like OnlyFans.

MintStars NFT platform screenshot with pictures of content creators using the platform
MintStars Platform

On the other hand, MintStars takes a more advanced approach as an NFT subscription platform, enabling fans to receive NFTs from creators by subscribing to them. This method not only benefits creators but also allows fans to resell their digital collectibles, with a percentage of each sale going back to the creator. Besides the subscription's revenue, royalties on NFTs may prove to be an interesting passive source of income for years to come.

Today, MintStars is in Beta and creator invites are sent out weekly. If you're a creator that wants to push interactions with your community to the next level while monetising your content, it is the go-to platform for you.

Register now to get access for you and your fans!

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