The Non-Fungible Token (NFT) is the latest spectacle in the cryptocurrency industry that has found its way into the mainstream. The market has seen exponential growth in 2021 alone. The market is at its nascent stage, but still, it has managed to garner mainstream media attention from all the major publications and websites. This surge in interest spans across several markets, right from Bloomberg’s audience to the music giant Rolling Stone’s audience. Such diversity of audience due to the variety of products is one reason why the NFT market has been on an absolute tear this year.
Non Fungible Tokens, essentially, are digital assets that are unique in nature and not fungible between each other. In technical terms, an NFT is a representation of data on a digital ledger, also known as a blockchain, where each such unit of data represents a unique digital item, thus the “non-fungible” part in its nomenclature. The data files the NFT represents could be anything, such as art, music, video, or any other forms of creative art. The digital files could be reproduced like any other, without any limitation, but the NFTs that represent these files are tracked through their respective blockchain and provide the owners with proof of ownership. NFTs are now used to commoditize a wide range of digital creations ranging from art to music to video game collectibles. They usually run on proof of work (PoW) blockchains like Ethereum and Bitcoin which are not as energy efficient as proof of stake (PoS) blockchains like Flow, Tezos, Cardano, and Algorand. Thus the NFT market has also faced a backlash from climate change activists due to its carbon footprint.
According to data from CryptoSlam, the total all-time sales of NFTs on the top 15 crypto collectible platforms is more than $730 million. Out of this $730 million, nearly $445 million of the sales have come in the last 30 days, which is more than 60% of the sales to date. It is important to note that while NFTs are being looked upon as the new cryptocurrency hype in the mainstream markets, they aren’t exactly a new concept. NFTs have been around since 2015. Thus, the spike in the revenue data itself is indicative of the massive surge in interest in the NFT market from enthusiasts and investors all over the globe.
Explosive NFT market to assist Xfinite’s growth
Due to the expanding nature of the NFT market, there are more and more firms targeting this niche and its user base to provide a better and more convenient ecosystem for the users. One such firm is Xfinite, which aims to “revolutionize digital media by bringing forth innovations to customer experience, data-driven engagement, and ecosystem economics for the benefit of the community.” Their top priorities are to ensure transparency and trust in the digital world.
Xfinite’s first offering is the dApp known as ‘Mzaalo.’ Mzaalo is a gamified video on demand platform, more commonly known as an Over the Top (OTT) streaming service. Mzaalo is secured on Xfinite’s blockchain platform. Xfinite has partnered with Algorand blockchain, which the platform is built on. Algorand is the first open-source, permissionless, pure proof-of-stake blockchain protocol. This partnership could also help Xfinite steer clear of any climate change concerns that are usually cast over proof of work blockchains, on which a majority of NFTs are currently based, as Algorand has committed to becoming the first carbon-neutral blockchain in the market.
Mzaalo is Xfinite’s first product and is first launched in the Southeast Asian market. Mzaalo provides use cases for both sides of the content that is housed on its platform. It is developing different use cases for users that provide a sense of equality and facilitate interaction between the creators of the content and the platform’s users. Mzaalo allows access to free content, user rewards, and a range of interactive features. For content creators, it acts as a platform through which they can earn revenue and also engage with their fans and consumers in unique, customizable ways.
Considering that Mzaalo is launched first in India, it has enormous upside potential with India’s gigantic $1.4 billion population consisting of tech-savvy youngsters. Xfinite offers more than 50,000 hours of premium content to its users, along with facilitating engaging between creators and consumers, while also acting as a social platform for the users. Users can socialize with mates in virtual watch parties, chats, and share their best moments with others while also earning rewards for watching content and engaging on the platform. The rewards that the users earn can be redeemed in the form of prizes, digital goods, and even premium fan experiences that allow fans access to exclusive content from the content creators and celebrities on the platform.
They have also announced several partnerships with mainstream companies like Microsoft, Daily Hunt, and Eros Now. Their partnership with Eros allows them access to their huge user base of over 200 million, out of which over 36 million users are paid subscribers. The XET token is the native token of Xifinte’s ecosystem. It is used as the value mechanism for all the stakeholders, including users, brands & influencers, and content producers, to transact in. XET is also the ecosystem’s governance token, as the token’s holders can vote for changes in the Xfinite protocol.
With Xfinite’s unique user experience through Mzaalo, the platform is bound to grow as it has a USP that no other mainstream OTT like Netflix, Hulu, or Disney Hotstar currently have. Considering that the NFT growth has been so explosive that even brands like Pringles, Taco Bell, Pizza Hut, and even Charmin have made NFTs ride on the wave of the hype, it is evident that this market is more than just a bubble and has several use cases for users and investors. In the latest, even a news article by Quartz about NFTs being sold as an NFT. Thus, there is no limitation on what kind of digital goods can be commoditized through NFTs, and Mzaalo will benefit from this growing market immensely, especially due to the unique real-life use cases it offers its users.