Social Media is a blaze with excitement around NFTs right now, and while confusing to many, the basic structure is this. These non-fungible tokens are being traded using smart contracts on the blockchain. This essentially means that when you buy digital content, you have a public way of proving you own it.
Ownership of the digital content may be as simple as owning a limited edition artwork that people attach a certain value to and as long as you can find a buyer willing to pay more, you could make money.
Other NFTs are really tokens that can provide access to unique experiences and events.
For years now, we’ve played video games that have game mechanics that encourage you to upgrade the appearance of your character, vehicles, weapons etc. At times these have in-game advantages, while other times it’s simply cosmetic. The problem is that these investments work in silos, with the money (or time) spent in one game does not transfer to another.
NFTs are really the first real prospect of having this occur between publishers and in virtual worlds of the future, known as ‘The Metaverse’.
While this whole concept may sound like a scam to the uninitiated, it continues to gain credibility as an increasing number of big-name businesses investing in this space.
The latest example of this is Nike, which today announced the acquisition of RTFKT Studios who have been grabbing attention by creating digital (read NFT) sneakers inspired by video games.
“This acquisition is another step that accelerates Nike’s digital transformation and allows us to serve athletes and creators at the intersection of sport, creativity, gaming and culture.
We’re acquiring a very talented team of creators with an authentic and connected brand. Our plan is to invest in the RTFKT brand, serve and grow their innovative and creative community and extend Nike’s digital footprint and capabilities.”
John Donahoe, President and CEO of NIKE, Inc.
“This is a unique opportunity to build the RTFKT brand and we are excited to benefit from Nike’s foundational strength and expertise to build the communities we love.
Nike is the only brand in the world that shares the deep passion we all have for innovation, creativity and community, and we’re excited to grow our brand which was fully formed in the metaverse.”
Benoit Pagotto, one of RTFKT’s co-founders.
The amount of the deal was not disclosed, but you can find more information at Nike.com and you can check out the first NFT collection from techAU – Gidgets, here on OpenSea.
