NFTs represent new pathways for filmmakers to raise funds for their films and ensure a new ownership structure.
When NFTs became mainstream at some point in 2021, many people were puzzled about their utility. People started with many critics calling out last year’s bull run as nothing more than a craze, modern-day tulipomania, and a fad that would eventually run its course.
The NFT industry is shifting away from mere hype toward practical use cases and real-life benefits for holders. And this way, it will prove critics wrong and stay with us for the long term.
The History of NFTs
NFTs may have become mainstream in 2021, finally getting recognition beyond a narrow group of enthusiasts and experts. But they have been around for much longer, with the first “NFT” created almost a decade ago, in 2014, by Kevin McCoy, who minted on the Namecoin blockchain, a token that pointed to animation and called it “monetized graphics.” McRoy did not do this pointlessly; instead, as a digital artist, he wanted to challenge an issue he faced.
The online world’s structure permits digital artworks to be regularly (knowingly or unknowingly) stolen, with the original creator ultimately cut out. McRoy realized that the online world could just as quickly solve the issue as it allows for it to exist and that digital artists do not need to be cut out.
His name of “monetized graphics” obviously did not catch on, and non-fungible tokens or NFTs came to be. In short, these unique cryptographic tokens exist on a blockchain and cannot be replicated.
Despite the initial creator gearing them towards the digital world, NFTs can also represent real-world items (be it art, physical assets, or real estate).
McRoy believes that just as everything was digitized in the last few decades, everything will eventually be tokenized in some form or another.
Transforming the Film Industry – NFT Use Cases
NFTs represent new pathways for filmmakers to raise funds for their films and ensure a new ownership structure.
An excellent example of this is “The Glue Factory,” a six-episode animated web series that raised some 3 million dollars in funding via an NFT collection that was sold out. The owners of NFTs from the collection were asked to share ideas and takepart in the creative aspects of the making of the Glue Factory, a comedy about previously mistreated horses. If the show does well, the NFTs could be sold for profit, much like some Pokemon cards or comic books gain in value over time.
On the market appeared many NFT projects taking the involvement even further. A particular example is a Polish project by Kleks Academy, with its limited collection of multi-D NFTs, which wants to provide film viewers with a completely new experience.
The primary purpose of this kind of project is to bring owners into the film and in the process.
Enjoying this kind of experience offers the possibility to take part in speaking roles, access behind-the-scenes with special screenings, and provide NFT holders with augmented reality film elements. Also, owners have access to a custom-built metaverse after the movie to continue the adventure until the film is over.
Final Thoughts
Finally, some filmmakers are finding other creative ways to monetize their films using NFTs, for example, with the ability to sell a film frame by frame, with each frame of the movie as a unique NFT.
The future of NFTs is probably lying in providing owners with utilities and benefits beyond just empty hype and promises of riches. But, a tiny part of the beauty of NFTs is that the secondhand marketplace enables the original creator to collect a royalty percentage from the NFT every time it is sold.
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