June 2022 | Page 21

LICENSING TRENDS :

THE INCREASING POPULARITY OF NFT How brand can use this as a licensing opportunity

A Non-Fungible Token or NFT is a tamper-proof cryptographic proof of ownership that represents a digital asset . This form of collecting and investing is becoming extremely popular in many sectors like collectibles , art , and other digital assets that utilize blockchain technology . The most expensive NFT ever was sold for almost $ 70 million in March 2021 .

There are three general classifications of NFT types :

● An original or a copy of a work that is documented using blockchain or a DLT ( Distributed ledger technology ).

● Digital NFTs give ownership rights to the asset that the NFT consists of .

● NFT metadata provides a representation of ownership rights to metadata files related to the Internet .

Kids India E-Magazine - June 2022 | Page 21