YouTube could add NFTs to help content creators

YouTube NFTs could be closer than you think. In a letter published today, the company’s CEO, Susan Wojcicki, suggested that the company is looking to branch out into NFT in the future as another source of income for creators.

“We are always focused on expanding the YouTube ecosystem to help creators capitalize on emerging technologies, including things like NFT, while continuing to strengthen and improve the experiences that creators and fans have on YouTube”, says the letter.

A non-fungible token (NFT) is a type of cryptographic token that represents a single asset. They can be digital natives or digitized versions of real-world assets, which have significant real or symbolic value.

They are emerging from computer programs and therefore have functionalities similar to cryptocurrencies, although there is a difference between the two: NFTs need yes or yes to be integrated into a blockchain, the open source and public access blockchain that is presented as one of the safe ways to invest and make digital commercial exchanges.

YouTube gets on the fever for NFTs. Photo: AFP

Fungibility means that the individual units of an asset are interchangeable and essentially indistinguishable from each other. For example, coins are fungible, because each unit is exchangeable for any other equivalent individual unit. A hundred-peso bill is interchangeable with any other authentic hundred-peso bill.

The detail was part of Wojcicki’s latest letter to the YouTube community, outlining the areas the company plans to invest in, like gaming and shopping, and how you plan to support creators.

Wojcicki said that YouTube is looking at Web3 “as a source of inspiration,” specifically pointing to opportunities with crypto, decentralized autonomous organizations (DAOs), and NFTs.

YouTube’s suggestions of possible NFTs are in line with other platforms that have recently released their own versions or are rumored to be considering an NFT feature. Twitter now offers a way for users who own a special JPEG file to “show off their most prized possessions” via a hexagonal profile picture.

Meta, which owns Facebook and Instagram, is said to be preparing something similar where users can display the tokens they own. According to reports, a market for NFTs is also in the works.

YouTube did not provide additional details about what NFT features might look like at the company.

The creators of some viral YouTube videos have already turned them into NFTs and sold them on their own. The Charlie Bit Me NFT, which shows a baby biting his brother’s finger, went up for auction last year and sold for $761,000. David After Dentist, a video of a disoriented boy after anesthesia, sold as NFT for more than $11,000.

The full snippet on NFTs

Susan Wojcicki, CEO of YouTube. Photo Bloomberg Susan Wojcicki, CEO of YouTube. Photo Bloomberg

Below is a reproduction of what the YouTube owner said in the letter in reference to NFTs.

When I started on YouTube, there was only one way creators could make money from the platform: ads. Over the years, we’ve worked to expand the opportunities available for creators to connect with their audiences. Now there are 10 ways creators can make money from YouTube.

And we are seeing creators from all over the world take advantage of these new opportunities. More than ever, creators are using monetization sources other than ads, like Super Chat and channel memberships. Last year, YouTube channel memberships and paid digital items were purchased or renewed more than 110 million times.

The effects of this change are felt all over the world. For example, last month, South Korean YouTube channels earned more than 50% revenue from channel memberships compared to December 2020. This includes creator and teacher Hwang Hyeon-pil whose story channel offers viewers members of your channel special videos, news and sessions.

Last year, Hwang increased his number of memberships to more than 10,000 users – an increase of more than 500%.

This year, we’re also very excited about opportunities in areas like podcasting, which allow creators to monetize their content and expand the reach of its distribution. As the use of podcasts continues to grow, we expect them to become a critical part of the creator economy.

We’re also looking to the future and have been following everything that’s happening at Web3 as a source of inspiration to keep innovating on YouTube. Last year in the crypto world, non-fungible tokens (NFTs) and even decentralized autonomous organizations (DAOs) highlighted a previously unimagined opportunity to increase the connection between creators and their fans.

We’re always focused on expanding the YouTube ecosystem to help creators capitalize on emerging technologies, including things like NFT, while continuing to strengthen and improve the experiences creators and fans have on YouTube.

By Editor

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