“Non-fungible” basically means that it’s a one-of-a-kind item that can’t be replaced with anything else. For instance, a bitcoin is fungible, meaning you can exchange it for another bitcoin and get the same thing back.
On the other hand, a unique trading card is non-fungible, and you’d get something completely different if you traded it in for another card. NFTs can be anything digital (like drawings, music, or even your brain, which can be downloaded and turned into an AI), but the current hype and focus is on using the technology to sell digital art.
The beginning of this trend can be traced back to the launch of the NBA’s top shot website, which allows users to buy and trade NFTs in the form of game video highlights.
One of the most popular transactions of the NFTs can be traced back to a viral video of LeBron James’s slam dunk, and a user paid $208,000 to get this video in the form of an NFT. As a result, despite being a very unconventional asset, NFTs have created a unique yet large market for themselves.
During the pandemic, the popularity of this digital asset skyrocketed. This can be very well derived from Dapper Labs’ success. Dapper Labs (the company behind CryptoKitties) creates accessible sports and entertainment consumer experiences based on blockchain technology.
In October 2020, it announced that its highly anticipated NBA Top Shot would be available to consumers globally and since then, the company has already made transactions worth $250 million. The success of this sole company shows the potential of NFTs in the future.
And so, considering this opportunity, Reliance Industries and Star India partnered with London-based entertainment-focused collectible platform Terra Virtua to create unique digital collectibles for the Indian Super League and all of its 11 clubs.
The Indian Sports League has signed two years licensing partnership with Terra Virtua to create a new collecting culture and make collectibles an intrinsic part of the whole sporting experience. These NFTs are going to be a new form of entertainment for sports fans.
And Terra Virtua is the ideal candidate for this position. It has been in business for four years and has about a year of trading experience.
It is the world’s first fully immersive social, digital collectibles platform and one of the leading blockchain creators and marketplaces.
It currently sells themed digital collectibles based on popular movies, television shows, and comic books. On the other hand, Terra Virtua’s new venture with ISL is the company’s first foray into the dynamic sports ecosystem.
The company also strives for sustainability, so it switched from the Ethereum blockchain to Polygon, reducing energy consumption in the minting of NFTs by 99 per cent. It also allows fans to create personalised rooms to display their collectibles, making it a great culture in and of itself.
The ISL was debuted in 2014. Since then, many historical moments have been created.
The fans can now buy and trade interactive memorabilia through Terra Virtua’s one-of-a-kind marketplace as part of the licenced partnership.
The main goal of ISL’s NFT strategy is to connect with millennials and make it a more interactive form of entertainment, thus opening the door to a new market in the sports industry.
However, despite all the success and unexpected rise in numbers, one must not forget that these assets are highly volatile and risky, just like cryptocurrency.
And so, they should be invested only after proper research and prudence.
