In recent articles, we have explored how NFTs are starting to be used in a variety of different new areas, platforms, and digital spaces. From game items to tradable digital assets, NFTs seem to be expanding at a fast pace way beyond those goofy cartoons of punky bored apes, as some of the biggest tech companies such as Twitter and Meta announce their upcoming NFT plans. Not surprisingly, it has been YouTube executives who have been referring recently to the prospect of leveraging NFTs to improve some of the services offered by the platform both to users and content creators. But why does YouTube need NFTs, and how are they planning to use them?
How do NFTs work?
NFTs are a particular kind of cryptocurrency that stand for something rare and distinctive, like a video game item, a song, or a work of art. NFTs are distinct from other cryptocurrencies in that they cannot be copied or divided, in contrast to regular cryptocurrencies like Bitcoin and Ether, which are interchangeable and fungible. NFTs’ ownership and authenticity are guaranteed by being kept on the blockchain, a decentralized network.
The rules and logic of NFTs are defined by self-executing programs called smart contracts, that are used to create NFTs. For instance, it can define the NFT’s creator, its meaning, the quantity of copies, and the royalty structure. Once the creator has created the NFTs, they can be sold on online marketplaces like OpenSea, Rarible, or SuperRare.
How to create NFTs?
You must have some digital content, such as an image, sound, or video, that you either own or have permission to use in order to create NFTs. Along with some cryptocurrency, you’ll need a digital wallet that supports NFTs in order to cover the gas fees—the expenses associated with maintaining transactions on the blockchain.
You must list NFTs on a marketplace that links NFT buyers and sellers if you want to sell them. Certain NFT categories, like those for games, music, or art, are the focus of some markets. For your NFTs, you have the freedom to determine the terms and price, including whether you want to accept bids or sell them for a set price. Additionally, you have the option to accept royalties, which can be a passive income stream, each time your NFTs are resold.
When did youtube joins the NFTs
YouTube’s Chief Product Officer, Neal Mohan, made the official announcement in a blog post on February 10, 2022, that the platform is introducing new methods for content creators to make moneythrough NFT monetization.
In addition to giving fans “a verifiable way to own exclusive pictures, videos, art, and even events from their favorite creators,” Mohan stated that NFT capabilities would give creators “a tempting possibility for creators and their audiences.”
He continued by discussing how NFTs could help creators find a previously unknown method of monetizing their work and build closer bonds with their audiences through cooperation.
And while YouTube is currently developing the resources that will greatly facilitate an NFT’s sale for creators, this has been going on for a while. For instance, Nyan Cat is a YouTube video that was offered for sale on the platform.
The importance of encouraging creators
Despite their thrive for constant innovation, platforms such as YouTube depend heavily on content creators to keep their dynamism. Also, back in 2005, when Jawed Karim recorded and posted the dazzling, hilariously redundant “Me at the Zoo” video on YouTube, there wasn’t as much competition as there is now. Social media was only taking its first steps. There was no Instagram, no Snapchat, no TikTok. It actually feels like another age – and in a way, it was. But in any case, YouTube has found a way to keep growing through all these changes on the Internet. And one of the main drives for this successful history of innovation and adaptation is how this Google-owned company has developed strategies to motivate content creators to keep feeding the platform with their work.
Now, there is a wide set of monetizing strategies used by creators to increase their earnings. Revenue from Google ads, sponsorship, merchandising, paid subscriptions, and channel memberships, all of these allows thousands of creators around the world to make a living out of their videos. And although it may seem that most YouTubers are earning good money, the truth is the amounts they receive can vary greatly, and most of them are in constant pursuit of new opportunities to improve and expand their fanbase, their monetization strategies, and their earnings.
That being said, YouTube’s declared goal to leverage a relatively recent technology, such as blockchain, to continue motivating content creators to share their videos on the platform seems reasonable.
NFTs’ “incredible potential”
In a recent letter published in their blog, YouTube CEO Susan Wojcicki referred to NFTs as presenting “a previously unimaginable opportunity to grow the connection between creators and their fans.” Right now, many YouTubers offer different types of content to their followers according to what we could call “levels of fandom.” Special content for patrons, Whatsapp, or Telegram groups for paid subscribers is the type of strategy that creators are currently using. As YouTube CPO Neal Mohan has hinted recently, NFTs may give them the opportunity to take this to a new level, giving creators “a verifiable way for fans to own unique videos, photos, art, and even experiences from their favorite creators.” In yet another letter in which opportunities to use NFTs were addressed, Mohan highlighted the “incredible potential” of these new technologies.
Details on how NFTs will be integrated into the YouTube ecosystem have not yet come to the surface. However, we can assume that holders of an NFT collection will be granted exclusive access to part of a creator’s content or given badges during live streams, as this could significantly enhance monetization opportunities for creators. Another more straightforward use for tokens could simply be to sell videos or fragments of videos as NFTs.
NFT Trends
In the ever-evolving world of NFTs, things that were once very popular can sometimes become less appealing. For instance, Moonbirds is a digital image collection that gained immense popularity upon its initial release. A whopping $484 million was made! However, it suddenly lost its appeal and saw a sharp decline in sales.
However, things are not just ups and downs. NFTs are increasingly being used in a variety of industries. Using NFTs to differentiate their brands is becoming commonplace for some large corporations. For instance, Pringles made a special “CryptoCrisp” NFT, which is like a digital version of their chips.
When it comes to sales, some NFTs are selling for millions! But not all NFTs cost that much. On average, many sell for less than $200. It’s amazing to think that just a few years ago, NFTs were barely known, and now thousands are bought and sold every single day. As the NFT market continues to evolve, its impact on platforms like YouTube is becoming increasingly significant, paving the way for a new era of content creation and audience interaction.
Frequently Asked Questions (FAQs)
What are NFTs?
NFTs are unique digital items you can buy, own, or sell, like artwork, music, or videos.
How do NFTs work on YouTube?
YouTube creators might use NFTs to sell special content, offer exclusive access to events, or provide unique fan experiences.
Can anyone create an NFT?
Yes, if you have digital content you own or have rights to, you can create and sell it as an NFT.
Are NFTs safe to buy and sell?
While NFTs offer a new form of ownership, always do your research and use reputable platforms for buying and selling.
How do I buy an NFT?
You can buy NFTs through various online marketplaces using cryptocurrency. Ensure you have a digital wallet set up before you start.
Conclusion
NFTs are opening new doors for YouTube creators, offering unique ways to connect with fans and monetize content. As these digital tokens gain popularity, they promise to bring exciting changes to how we enjoy and support online art and videos. Dive into this new trend and discover the endless possibilities that NFTs hold for the future of digital creativity.
