By now, almost everyone who has at least some knowledge about the cryptocurrency industry has heard about NFTs. NFTs have been gaining more and more popularity and have become one of the biggest modern trends. While NFTs started as simple collectibles, nowadays, they are revolutionizing many industries around the world. They are being used in entertainment, gaming, and even industries such as fashion, sports, or healthcare.
But that is not all. Charity organizations are also starting to notice the immense potential of NFTs. More and more charities are now trying to leverage NFT charity tokens to generate more funds. Is NFT charity the next big philanthropy trend? How far can NFT charity go? We will answer these questions in this article.
What Is an NFT and How Is It Created?
Let’s start by explaining what an NFT is. NFT stands for a non-fungible token. An NFT is essentially a digital file that has a unique value. It cannot be altered, copied, hacked, or transferred without the consent of its owner. In other words, an NFT is a unique blockchain code element similar to a cryptocurrency. The difference, however, is that the NFT token cannot be exchanged for another, while the cryptocurrency can.
NFTs are extremely valuable, mainly because they are impossible to copy or hack. Since it is a digital file, you can copy it, but you cannot copy the unique code assigned to the original NFT. But what is the advantage of being the owner of a work that anyone can download from the internet? The main benefit is that their rightful owner can use NFTs to produce physical products, such as t-shirts or games, and generate a profit. The NFT code itself can also be used as proof of the authenticity of a limited product. This is why people are willing to pay immense amounts of money to become the rightful owners of NFTs.
The good news is that everyone can create their own NFTs. There are two ways to develop an NFT. First, if you are a developer, you can write a code that generates an NFT. This is a complex process that only a developer can perform. Second, you can use a special platform that simplifies the code creation process and generates the NFT with a simple interface.
How Are NFTs Influencing Different Industries?
NFTs have been revolutionizing more and more industries over the past couple of years. The primary industries leveraging NFTs at the moment are the art and music industry and the gaming industry. NFTs can also be used as collectibles, the same way as works of art have been used for years. Collectors purchase rare and unique NFTs for huge amounts of money. The more scarce and unique the NFT, the higher its value. NFT charity tokens are also becoming more and more popular.
NFTs have become a natural part of the art and music industry very quickly since it is an industry that has been dealing with intellectual property ownership for years. Thanks to NFTs, artists, and musicians can now come up with their own non-fungible tokens and sell them directly to their fans. Since the copyright isn’t transferrable to the buyer when purchasing the NFT, it stays with the artist. Because of that, the artist can keep the intellectual property rights for each art piece. This allows them to generate more revenue in the form of resales.
The gaming industry has adopted NFTs mainly in the form of in-app purchases. Many games allow users to purchase special tokens within the game that can be used in different ways, such as adding special features to their character’s appearance, buying weapons, or gaining access to hidden game planes. Gamers also can sell the tokens or convert them into reward points.
What Are NFT Charity Tokens?
Charities can also greatly benefit from understanding blockchain technology and incorporating NFT charity tokens into their operations. Most charities around the world are mainly funded by government grants or donations. However, after the COVID-19 pandemic, many charity organizations have lost the ability to raise funds through annual events and other initiatives, such as personal fundraising. At the same time, there was a significant increase in donations coming through online fundraising events.
The integration of blockchain technology with fundraising opens more opportunities for charities to receive donations while being transparent about where the money comes from and where it goes. In addition to the ease and transparency, receiving cryptocurrency donations can also help charities protect themselves against volatile currencies. This is particularly beneficial for countries with a high level of inflation and an unstable economy.
Another trend that is gaining more and more popularity among charity organizations are NFT charity tokens. Even if the charity organization does not have a cryptocurrency wallet or doesn’t accept donations in cryptocurrencies, it can use NFT charity tokens. There are many ways that NFTs are involved in charities. For example, many big companies issue their own NFTs and decide to donate part of their sales to different charities. Another way that charities can leverage NFTs to raise funds is by involving a famous person in their NFT charity token fundraising campaigns. Since NFT charity tokens are often used as collectibles, some collectors may decide to donate their NFTs to a charity of their choice instead of donating money or cryptocurrency. While many cryptocurrency projects donate their earnings to charities, the next step for charity organizations is creating their own NFT charity tokens to increase their funds.
Companies That Create NFT Charity Tokens
Although blockchain technology has developed rapidly over the past decade, there is still much room for advancement before charity organizations can learn how to fully benefit from creating and selling their own NFT charity tokens. NextHash is a cryptocurrency and blockchain platform that is already taking advantage of blockchain technology and developing its own NFT charity tokens. With the recent partnership with Qhubeka, a cycling charity from South Africa, NextHash Group is creating a marketplace for NFTs in sport. Click here to learn more!