What Are Social NFTs? What’s the Difference Between Social Tokens and Social NFTs?
What is the difference between tokens and NFTs?
Before we can talk about social tokens and social NFTs, we need to talk about the precise definition of “tokens” and “NFTs.” A token is the base unit of a blockchain network. Bitcoin and Ether, the two best-known cryptocurrencies, are both tokens you have probably heard of. Tokens are the tradable element of blockchains which you can use to invest or make purchases, but they also underlie the function of the blockchain ledger. The mining or staking of tokens is what powers the blockchain as it executes transactions and records them immutably. (Check out our articles on consensus and token distribution for a more detailed explanation of these concepts.)
Cryptocurrency tokens like Bitcoin and Ether are fungible. That means they are completely interchangeable with each other, and each individual token has the same value as any other. Traditional fiat currencies are fungible too: every dollar has the same value as any other dollar. NFT stands for “non-fungible token” meaning each token is different and unique. That’s why NFTs are often used for art — you wouldn’t just trade a painting for any other painting right? You might end up trading the Mona Lisa for a kid’s arts and crafts project! Here we get at the most important difference between regular tokens and non-fungible tokens: regular tokens are completely interchangeable, whereas NFTs are unique.
What are social NFTs?
Now that we covered that, the difference between social tokens and social NFTs is pretty easy. Social tokens are fungible, with each one the same. That means they usually all carry the same privileges, access, or benefits. Social NFTs can be completely unique, so that each one entitles the holder to different things. This can make for really intriguing marketplaces, where NFTs are valued differently in accordance with the benefits they offer. However, this can change how the tokens are perceived. Some social token holders view their tokens as investments in the career of a content creator. As their profile rises, so does the value of the tokens. If they want to bet big on that creator, they buy more tokens. While social NFTs are still attached to the creator, it matters exactly which NFT you get and the benefits it offers, meaning a slightly different approach for collectors and investors.
Social NFT
The aptly-named Social NFT is a dedicated marketplace for social NFTs. The platform is built on Binance smart chain and links directly with creators’ social media accounts. This means their existing content can effortlessly be minted as NFTs. Popular creators can easily leverage their existing fanbases by linking their accounts to the platform. The proprietary SNFT token is the currency for purchases on Social NFT, and also used for governance and powering the network. Can you imagine the resale value from snapping up viral tweets or Instagram posts before they are big? Social NFT provides the profitability and provenance of NFTs for the wild world of social media.
The Future of Content
Social NFTs allow content creators to connect on a deeper level with their fans, and give normal people access to their favorite celebrities. This relationship allows creators to sidestep networks, streaming services, and social media sites to retain more control over their work and the revenue it generates. This is one of the amazing decentralizing effects of blockchain technology and a hallmark of Web3. Social NFTs also allow like-minded people to easily build communities around the things they love. Are you going to buy any social NFTs?