VKontakte (VK) is russian social network. A few days ago, on February 18th, VK announced that they will start supporting NFTs. NFTs are unique cryptographic tokens. Unlike Bitcoin, which can be traded for another Bitcoin and have the same thing, NFTs are non-fungible and represent a one-of-a-kind trading card. NFTs are sold online in the forms of videos, art, music, in-game items, and so on.
In this case, NFTs would be used to protect copyrights and monetize user-generated content. Alexandar Tobol the technical director of the platform. He mentions that this is rather just a helping hand and it will not create its own, new blockchain.
Vkontakte currently has over 650 million active users. This makes it the most popular social network service in Russia. Tobol said that NFTs offer a guarantee of copyright and originality in different countries.
Increasing the value of the content that is provided
NFTs are there to help increase content creation by their users. They believe that the value generated from them, by extension, will greatly be encouraged too. In order to verify the content that has been downloaded, such as music and videos, users would need to provide ID verification. This will be of great help in terms of stopping NFT frauds.
After buying NFTs, users will be allowed to use them and sell them on different platforms such as Solanart and OpenSea. These platforms represent NFT marketplaces.
About 80% of the NFTs minted for free were copied on the leading NFT marketplace, OpenSea. The executive of the marketplace, Cameron Hejazi, tried limiting the number of NFTs that could be minted. However, this decision was backlashed by users and he reversed it.
NFTs as a part of many social networks
The owner of Facebook, Meta, has also announced that it will allow its users to create and sell NFTs. The developers of Meta platforms are preparing a feature that will allow users of Instagram and Facebook to display their collected NFTs on their pages.
Bored Ape Yacht Club and Cryptopunks are exclusive and expensive NFT collections. The pieces that users bought from these two collections would usually be posted as a profile picture on their Twitter profile. It represents and signals their stature online. A lot of content creators are already selling their TikTok and Youtube videos, Tweets, Instagram posts, and so on. One of the first examples of selling NFTs was a tweet made by Twitter CEO Jack Dorsey. It was sold for almost 3 million USD.
The possibilities are endless. Content creators could start selling limited edition copies of the content they are creating. Those could represent some of their iconic moments or just everyday things instead.
If creators want to make NFTs, it requires you to have a cryptocurrency wallet and have some cryptocurrency on it. This is needed to pay the transaction fees.
Your capital is at risk.