NFT artwork becoming a growing marketplace as people who made a lot of money on Bitcoin are looking to spend it on some luxury stuff. There have been a lot of headlines about people making hundreds of millions off the sales of unique art pieces sold from a blockchain. In reality, what you are witnessing is what many of us who are future-facing is realizing is the future is rapidly approaching because of COVID-19 accelerated digitalization and the Fourth Industrial Revolution.

However, the blockchain technology behind NFT art is actually one of the original use cases of blockchain, not the cryptocurrency model which is mostly a money-grab pump and dump scheme. In this article, we will talk about NFT or Blockchain Vault technology in a bigger picture so you can understand the opportunity.

Backgrounder

NFT stands for non-fungible token and when I see the descriptions on Wikipedia and other websites, they do not explain this well for the average person to understand. There is confusing technology language being used and the Ethereum cats always using offbeat, inaccurate descriptions but let me try to explain what an NFT supposed to mean.

The proper term is not “token” but a digital asset. A token is meant to describe a one-time use destructive character set like a long password. A digital asset is a binary file which is like the files on your computer – your images, videos, and documents – they all have filename extensions like .jpg or .docx or .mp4 so the computer knows how to process the file. NFT artwork is not a one-time use character like the temporary passwords sent to your phone to enter on a website to verify who you are – that’s an SMS token.

Non-Fungible means the data is not exchangeable which I know is confusing but let me explain. Bitcoin actually does not exist in any form – it is a pure math-based currency or MBC and was the official description before the term cryptocurrency because known as Bitcoin. With Bitcoin, there is a record of a number that entered your account and a number that left your account, there is no physical Bitcoin, just the unit price of that number. The idiot on the CNBC article trying to describe NFT just wrote some confusing BS.

Non-Fungible assets are digital data that cannot be altered and stay original. This is what the blockchain does through forward-hashing techniques, make a record unique and cannot be altered later. That data is actually encrypted and digitally signed by a person holding the private key making them the owner of that record.

As a result, we can store files on a blockchain distributed ledger from software, artwork, documents and this is the NFT technology described and I hope this is less confusing than the BS I saw written on NFT. And they are not tokens; they are digital assets. This is why we using the term Blockchain Vault because the Blockchain Vault stores digital assets and keeps a record of the activity of those assets like a bank would do.

Blockchain Vault Structure

I want to move forward with the terminology Blockchain Vault because it is easier to understand than NFT geek speaks and NFT is not even the proper naming of the technology. With a Blockchain Vault, there are two blockchains.

Vault Blockchain. This blockchain holds the digital asset that is encrypted with the owner's private cryptographic key and digital signature to verify they are the owner of the work. The digital asset is also hashed among other digital assets in sequential order so no one can alter the digital data without breaking the system altogether.

Asset Activity Blockchain. The activity blockchain is now similar to Bitcoin – it tracks the ownership transfer of the digital asset when the old owner transfer to a new owner by signing the transfer with their private keys. So this is a ownership record of official transfer from one person to another.

This is a better description and let me give you a secret – these dorks and geeks are trying to confuse you with off-base tech terms to pretend they smarter than you and you don’t understand what they doing.

Business Model

This type of blockchain is major and disruptive, more than the cryptocurrency model. I don’t want to write out a lot of business models but will explain that this technology is far-reaching. You can create digital assets such as corporate stocks, media files, event tickets, and certificates of authenticity and facilitate the transfer of those assets.

Let’s go back to the NFT Artwork model – an artist can create their art, upload to an NFT blockchain platform and sell the art as a one-off transfer or license strictly 50 copies to art galleries around the world for a price as an exhibition. You can create a platform that allows the uploading of NFT art.

But take it further – you can create a Blockchain Vault that stores licensing to a SoundCloud artist that clubs and radio stations would pay for like 10,000 stream units and every time they play that artist, they have to sign off for each stream – you can now have this level of accountability and royalty models and this Dream and Hustle site is already using this kind of technology in the background.

Another model you should consider is create advertising networks – in this process, people upload their advertisement assets from podcast commercials to video commercials to outdoor signage assets. But you have an activity blockchain that serves as a bidding placement exchange where advertisers and content creators meet and deal on placement for a fee – this is a massive opportunity that is bigger than selling hipster NFT artwork.

Don’t Forget The SPAC!

One of the goals you want to pursue is to be acquired by a SPAC and go public. But you cannot build up an empire selling hipster artwork and be publicly traded. What you want to do is either be an NFT or Blockchain Vault platform owner and serve a real corporate sector. For example, you can become an advertising company, you can license media rights, you can offer trade contracts and bidding contracts and be diversified.

This article was designed for you to understand the underlying technology that is driving the NFT Art crazed in the media. I do not expect the NFT art craze to sustain because it is overhyped with corny stuff that doesn’t need a blockchain structure to buy. You are going to see this type of blockchain chain used for real asset management, both physical and digital assets and that’s what you need to get ahead of the game and focus on at this moment.