Car NFTs: Everything you need to know

NFT or Non-Fungible Token means a one-of-a-kind digital asset created with blockchain technology that can be sold or exchanged. It could be a still image, an exclusive video clip, an illustration, or even a tweet. Remember Twitter founder Jack Dorsey's first tweet was sold as an NFT for $2.9 million last year, reflecting the maturity of the NFT market.

But what do NFTs have to do with cars? Well, many big car brands are experimenting with different approaches to NFTs, including auto-related artwork and experiences with exotic cars to lure art collectors as well as auto enthusiasts.

As per the experts, the future of NFTs within the automotive collectors' market is very bright, with a lot of potential underlying it. So, here we bring everything you need to need to know about car NFTs -

Car NFTs meaning

Those non-fungible tokens which are particularly crafted while keeping in mind the car owners are called Cars NFTs. In other words, it is an artwork launched as an NFT by a car manufacturer. These include exclusive photos or videos of the car, animated clips, or even a live racing event. 

How do car NFTs work?

Most car NFTs are part of the Ethereum blockchain, which is a distributed public ledger that records transactions. These are individual tokens with valuable information stored in them. As they hold a value initially set by the market demand, they can be exchanged just like physical types of art. In addition, NFTs' distinctive data makes it convenient to validate their ownership and the transfer of tokens between owners.

Car NFTs illustrations

Automakers who aim to make cash out of this tech are Ferrari, Lamborghini, Porsche, McLaren, Nissan, and many more. Some illustrations of the Cars NFTs are -

Lamborghini Space Key: Lamborghini announced the release of its first NFT earlier this year, which is just an image crafted by the Swiss artist Fabian Oefner. It depicts a Lambo car breaking into thousands of small bits as it flies into space like a rocket ship.

McLaren Genesis Collection: The British luxury automaker McLaren has also launched an MSO LAB providing access to its rare NFTs. The first drop comprises the ultra-limited-edition "Genesis Collection," featuring the brand's iconic P1 car.

Nissan GT-R artwork with a free special edition car: Last year, Nissan Canada announced an NFT featuring the artwork of the GT-R created by Alex McLeod. This NFT was sold alongside a Nissan GT-R Nismo Special Edition at auction at a price of $2.3 million.

Rolls-Royce Black Badge NFT: Rolls-Royce also rolled out an NFT of the special-edition Black Badge trim of the new Ghost. It was an animation created by Mason London to celebrate the legacy of the Black Badge series. 

Porsche Taycan NFT Digital Art Car: Porsche Australia also released a bespoke artwork livery created by contemporary artist Nigel Sense late last year. The artwork was transformed into vehicle livery on a new Porsche Taycan before being photographed to create three different digital works of art in the form of multimedia photographs.

Do car NFTs make sense?

Yes, of course, creating and selling virtual exotic or premium cars is a completely logical step for automakers. Some seriously wealthy car collectors buy expensive exotic cars and drive them, whereas some buy them simply as investments for resale after a few years. Adding miles to an exotic car may decrease its value or hamper its finesse. So, rather than buying an actual deal, the car's static piece of art as an investment offers a better deal.

In the end, we conclude the NFT market size is growing by the day, and we cannot dismiss its real-life utility. Although, it seems like a game for the super-rich.

Also read: 8 most popular Lamborghini colours