NFT, heroes of the virtual economy
The author is the General Manager of LG Electronics Customer Value Innovation Division.
A chocolate candy made as the one and only Valentine’s Day treat could be priceless, no matter how imperfect in taste or shape. Its value cannot be measured because it was designed for one person.
But technological advances have symbolized this irreplaceability and authentication. Young capitalists and program developers applied the ardor of chocolate candy making to impress a lover with blockchain technology to create a virtual economy fueling digital assets and collections. Those who don’t mind investing in their unpredictable future value are thrilled with the idea of crafting or minting exquisite or rare items for exclusive ownership. Exclusivity increases the value of the asset for auction if its value is in high demand.
May 22, 2021 marked Bitcoin Pizza Day commemorating the 2010 purchase of two pizzas for 10,000 bitcoins, the first instance of real-life digital token spending. Crypto fans are celebrating the day by donating pizza to hungry children around the world.
Rare Pizza’s Decentralized Autonomous Organization (DAO) has started a project where hundreds of artists and developers have joined together to create 10,000 unique generative art pizzas or pizza graphics that can be “cooked” in any way. algorithmic through the addition of ingredients and toppings as well as boxes and drinks that can be sold through non-fungible pizza tokens (NFTs). The project brought in $1.3 million from the sale of the rare pizza collection, and the host used the proceeds to distribute pizza around the world. The collaboration suggests how the token economy can wonderfully blend into the real world.
The concept of decentralization based on the blockchain economy has generated a new culture. A DAO like the Rare Pizza Project pursues an open and egalitarian organization with no unified leadership but with a common goal shared regardless of age, gender, or race. Each individual brings their thoughts and talents in their own way. They are united around a shared love and vision instead of ideology or self-serving interest, enlightenment or publicity objective. PizzaDAO was started with the shared vision of hosting the world’s biggest pizza party for hungry people. They don’t seek feedback and leadership. Empathy is what can make the massive project possible.
NFTs shouldn’t be seen as just for young people familiar with computers and the metaverse. Companies keeping up with the times have already employed talent to unearth various for-profit applications and business models for NFTs. Even those who are skeptical of metaverse economics would find NFT in a different light due to the 370x quantum leap in the NFT industry and the value of the sector. NFTs have come to talk beyond ownership and experience to define exclusivity to a certain group in order to destroy existing business models. For one, the Bored Ape Yacht Club (BAYC), which started with a limited collection of 50 ape NFTs, has attracted celebrities and influencers from around the world and has become invaluable.
Online communities condition NFT purchases for membership and require authentication of one’s identity by creating online profiles. Collectors are looking for SNS memes and music videos to add to their NFT collections and digital egos. The NFT concept is monetized and industrialized based on shared interests, participation, excitement, fun and empathy. Explosiveness and applicability cannot be determined since unpredictable teenagers are the main drivers.
There could be a huge divide between the haves and have-nots of digital commerce experience. We may live on the same planet, but may not share the same space amidst the rapid evolution of the digital economy and blockchain.
Translation by Korea JoongAng Daily staff.