Visa has released a 17-page whitepaper on non-fungible tokens (NFTs).
The company sees these opportunities in the emerging sector.
Payment services provider Visa has published a whitepaper around the booming topic of NFT. In it, the plastic card producer highlights topics such as how NFT works, how to store them and what reasons there are to buy them. The company refers to the sports industry, among others. For fans, for example, non-fungible tokens open up entirely new ways to support their favorite team. If Visa has its way, NFTs offer fans the opportunity to build a deeper and more dynamic connection with the sports team of their choice than was previously possible. The whitepaper points out that the Corona Crisis has hit the sports industry hard – $18 billion in revenue has been lost since the beginning of 2020, according to the paper. Financially, NFT technology could help. This is because it could be a way for sports clubs to create entirely new revenue opportunities.
The white paper goes on to describe the following use cases for sports clubs:
- Customer Relationship Systems,
- NFT art,
- NFT based computer games,
- and a collection function.
For example, the NBA Top Shot project provides such a collection function. If you think of traditional trading card games like Pokémon, the images on the card are always static. Now, through NFT technology, NBA fans can not only collect images, but also videos of special moments. On November 15, 2019, NBA Top Shots immortalized, for example, a dunk by LeBron James as NFT. Currently, this is traded for one million US dollars.
What are NFTs anyway? Cuy Sheffield, head of crypto at Visa, answers the question this way:
NFTs are a way to represent ownership of a digital asset like an image, video, or text. On the Internet, there has been no way to claim ownership of a digital asset since its inception. This is because most files can be copied, pasted and shared indefinitely. NFTs are unique tokens that can be used to certify the origin, authenticity and ownership of a digital medium.
Visa’s involvement in the crypto sector is growing
Visa is one of the largest companies in the world with a market capitalization of $500 billion. The payment services giant from the United States has been taking more and more steps to gain a foothold in the crypto world lately. For not only is Visa releasing more and more crypto payment cards in even more countries. To that end, the company is offering cryptocurrency payment options to an ever-increasing number of people worldwide. In the process, the US company has selven with the current trend. Recently, the positive news for NFT fans went around the world that Visa had acquired a “Crypto Punk”.