The adoption of NFTs by social media behemoths might signal the beginnings of a new reputation system in an increasingly digital society.
Twitter is experimenting with NFTs to allow users to display their collections as their profile photos. The company’s user base has gradually grown to reach 185 million users last year.
Twitter is working on a new feature that would allow users to import their NFT collections from their blockchain wallets, according to Mada Aflak, a senior software engineer at the microblogging network. The functionality would show a confirmed checkmark depending on the blockchain on which the NFT was issued.
Twitter’s verified NFTs might be a solution to a problem affecting crypto Twitter. After the popularity of NFTs skyrocketed early this year, and collections such as CryptoPunks began to trade for hundreds of thousands, if not millions of dollars, they began to be usable as profile photos.
Ownership on the blockchain can be readily confirmed, on social media. Nonetheless, anybody may copy and paste someone else’s profile image and use it on their own. Collectors were furious when this began to happen with highly valuable NFTs.
One of digital artist Mike Winkelmann’s NFT artwork sold for $69M, for example. And major NFT marketplace OpenSea’s sales have topped $4B each month. Some believe that copying and pasting an NFT merely increases its value due to the more attention it receives. However, others want to utilise and control their digital property solely.
On social media, someone else’s NFTs can simply be re-used without any type of authentication procedure. Users may link their wallets, for example, to authenticate the ownership of their NFTs, albeit this could jeopardise their anonymity. Using a new reputation system on the web, you can now show off your NFTs while also proving ownership.
The new reputation system of the digital world
Early bitcoin users regarded to be as visionaries who saw something no one else did in an illiquid and hazardous market. That has now grown to be worth billions of dollars. Having pricey and uncommon NFTs might potentially considered as a method to demonstrate your crypto knowledge. And identify yourself as a contributing member of the community.
It was “just a matter of time”, according to Alex Salnikov, co-founder and head of product at NFT marketplace Rarible, before NFTs began to appear on Twitter.
He went on to say that the function may be part of a new reputation system for a digital world. And that “the relevance of Twitter’s new feature is not in the capacity to show that a specific NFT belongs only to the profile owner”.
Jesse Johnson, co-founder of DeFi and Aavegotchi, a DeFi and NFT crossover project, expressed his enthusiasm for the potential that Twitter verification of NFTs may offer to presenting our digital identities. “It only makes logical that ‘what’s in your wallet’ becomes just as valid as ‘who you are’ as a basis of social identification”. He continues, as our real-life lives become increasingly interwoven with digital avatars.
TikTok will be introducing an NFT collection
Twitter isn’t the only social media company experimenting with NFTs. Its CEO, Jack Dorsey, is a well-known Bitcoin (BTC) enthusiast. Who sold the first-ever tweet written on the site for $2.9 million back in March.
TikTok said on September 28 that it will be introducing an NFT collection inspired by its top creators. Such as Lil Nas X, Bella Poarch, Curtis Roach, and others. Immutable X, a new scaling solution for layer-two NFT protocol Immutable, will power the NFTs. Which will be deployed on the Ethereum network.
The TikTok Top Moments collection will include a selection of six TikTok videos from the network’s most prominent producers. In order to honour their contributions to the network’s growth into one of the world’s most popular social media platforms. The sales will benefit content creators and NFT artists directly.
Salnikov responded to TikTok’s decision by stating that celebrities are now “seeking to monetize via NFTs, the metaverse’s principal media”. Which is “great news for the whole market” since it’s “the mainstream acceptance that the crypto sector has been expecting for over a decade”.
TikTok is one of the most popular social media sites on the planet, with over one billion members. Its adoption of blockchain technology pushes it closer to general consumers. Who may one day possess assets on the blockchain without even recognising it.
Intellectual property monetization
NFTs are “changing the way we value ownership,” according to DigitalBits’ managing director Daniele Mensi, who also said that TikTok’s move “ushers in a new age of value generation for consumers globally.”
Mensi went on to say that anything, including a TikTok video, maybe an NFT. As a result, TikTok celebrities are now selling their material as NFTs, allowing “fans to own a piece of their work”.
TikTok’s capacity to “produce viral moments and cultural trends, as well as hyper-connect worldwide groups,” according to Sasha Ivanov, founder of the Waves blockchain, “will play a crucial role in the evolution of the whole ecosystem”.
Over time, TikTok has been using blockchain technology in its operations. It teamed up with blockchain streaming platform Audius in August of this year to launch TikTok Sounds, a new feature. Audius users may now export music made using the protocol to TikTok as part of the collaboration.
TikTok’s launch has raised awareness of NFTs’ larger use as a “community-building and intellectual property (IP) monetization tool,” according to Solo Ceesay, co-founder of Calaxy, a social marketplace for artists.
For years, monetizing intellectual property has been a hot subject, while NFTs “exemplify verified scarcity,” according to Ceesay, a combination that may usher in “the next wave of crypto’s consumer acceptance.”
TikTok and Twitter are already aggressively embracing NFTs, but the road to get here has been a rough one. The embryonic cryptocurrency community debated the possibility of coloured coins to put real-world goods onto the blockchain in 2013. Eight years later, people are talking about how unique blockchain-based assets are making their way into their favourite social media sites, which are utilised by billions of people.