NFTs provide a cultural and coded bridge from Fiat

NFTs provide a cultural and coded bridge from Fiat

Non-fungible tokens (NFTs) are closely related to blockchain technology and the broader crypto ecosystem by the nature of their technical design.

In the technology’s early days, this meant that there was a significant overlap between the community of people who created and collected NFTs and those with an interest in what was previously the primary use case for blockchain networks – cryptocurrency.

In the past few years, NFT has been chosen by artists, gamers, marketers, and others with an interest in owning digital objects. However, with the growing mainstream acceptance, a group of actors who previously had no interest in cryptocurrency are now finding themselves face to face with Ethereum and other related blockchains.

as such Eitan MessikaCo-founder and CEO of the French-Israeli crypto startup Nilustold PYMNTS in a recent interview, “NFT has been the bridge from culture to cryptography.”

It was on this note that NFTs brought a bunch of “cultural-type companies” to the cryptocurrency market that Nilos made this week (September 21) Announced a $5.2 million financing roundas a platform to help companies with crypto-based revenue streams convert their income into fiat currency.

Related: Share Instagram Trials NFT with select creators and collectors

But he said it’s not just about the need to exchange cryptocurrency for cryptocurrency. Nilos can also help companies monitor compliance and administer taxes needed to handle cryptocurrency, as well as make incorporating NFTs into a more realistic and accessible business strategy for a range of brands, artists, and freelancers.

See also: Andreessen Horowitz Drives License Fee to Protect NFT Market

Messika added that while the NFT movement has been a catalyst for Nilus, a lot of companies in the ecosystem only generate crypto income, noting that even in the field of decentralized finance (DeFi), companies have expenses to be paid in the form of cash: “At some point, they need All of these companies have to get legal payments and get their money back.”

What’s more, he even said “people you never thought would need to top up their money, like DAOs.” [decentralized autonomous organizations]All of them should manage both the fiat treasury and the crypto treasury.

Crypto income management, fiat must be the same

While Messika acknowledges that there are other ways to convert cryptocurrency into fiat currencies, he finds that existing solutions do not meet the needs of small businesses due to extensive setup processes and high-volume requirements.

And while “crypto-friendly banks” can handle volumes in the hundreds of thousands, freelancers, artists and small businesses need to scale on a different scale, he said.

He added that cryptocurrency exchanges do not meet this need either, saying that trying to run everything through a platform like Kraken or Coinbase would make it very difficult to track transactions.

This is where Nilos steps in to help companies track crypto revenue. As Messika explained, “The idea is to be able to consolidate different accounts and make sure you have one dashboard where you can see multiple incomes,” making crypto income management as straightforward as mandatory income management.

Continuing with the analogy that running a multi-crypto and multi-fiat operation should not be different, Messika said the goal is to be as neutral as possible when it comes to different types of blockchain.

For example, there has been a strong focus on Ethereum – in part due to the way it has been central to the development of the NFT space thus far – but he said Nilos has already expanded into Polygon because it has enabled the company to expand and diversify its customer base.

Learn more: Even though Hype is integrated into Ethereum 2.0, crypto payments won’t change

On why the Ethereum ecosystem continues to thrive, Messika attributes this to the “Lindy effect” on the ether market – “the more something is already created in the market, the more likely it will survive.”

Finally, he said, it all boils down to confidence. Referring to the well-established communities of Ethereum developers, users, and miners, Messika noted the network’s strong influence in the way Ethereum was created and said it “remains the most widely used and most trusted chain”. [there is]. “

For all PYMNTS EMEA coverage, subscribe to the Journal EMEA Bulletin.

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