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## Tough times for marketing?

### What are the challenges for events?

*We have been talking to a ton of event organisers. This is what we learned:*

Customer lifetime value is becoming a crucial success factor in marketing. However, for live events, marketing is mostly focused on brand placement, and often, there is no driver for digital activity that could extend the analog experience. It is getting also more difficult to track users in the digital space with cookies becoming increasingly regulated.

Strong brands command a large following, but often struggle to convert that into measurable value, for themselves, for their partners and sponsors.

Without a digital component, Gen-Z, A and more future fans are at risk of being lost to purely virtual experiences, digital events and uprising brands.

### How will that change?

At Kollektor.io, we believe the future doesn’t have to be one in which real-world events are becoming obsolete and humans only meet in virtual spaces. We want to enable a different future, placing brands in a position to maintain and grow their fanbase, and build communities that partners and sponsors can tap into. 

We are building collector.io, a white-label web3 solution enabling them to create their own loyalty system and community, connecting real-world events with digital assets, rewards and privacy-first, user-driven profiles to enable the digital fan community of the future.

### The most valuable NFTs will be free

The future is in extended reality – XR, and the future is already happening now. While sports events can attract huge sponsoring budgets, traditional marketing is getting more and more expensive, and there is a risk this will decrease event sponsoring budgets 

Successful events will have to have a digital strategy, and strategically extend their brand into the digital world. They will need a different kind of memberships. 


The Future of Membership & Loyalty

Kollektor.io is art-first.  

We believe that the art and its experience by the collector are the most important thing. This sets us apart from almost every other NFT project we have seen.  

Here are several ways in which Kollektor.io is ensuring that the experience of the artwork stays in focus:  



##### More than a picture 

NFTs are often used synonymously with pictures, something that has not significantly changed over the last 6 years. We believe the potential of NFTs is much larger.  

While it is easy to store arbitrary data for anyone, we have already developed gallery capabilities to display movies and animations, AR models, music and sound, and text and PDF documents. 

##### Presentation matters 

Many NFT platforms are web-based applications where you can buy and sell an NFT. If you want to look at your collection, you need to login to the platform you bought it from. Most crypto wallets can show NFTs, but many just show the data, or at best a static image before an uninspiring background. 

We believe that presentation matters, and therefore we built an NFT gallery for your phone from scratch. As a native app, it fluently and elegantly provides the backdrop for your collection. 

##### An experience defined by meta-data  

Oftentimes, an artist has a conceptual idea of how an artwork should be displayed. We are currently the only NFT platform that allows fine-grained control of how an NFT is shown in the gallery, and we are working with artists to improve this constantly. 

##### Soulbound NFTs 

NFTs are usually seen as an investment opportunity: the motivation to buy them is mostly driven by the hope of selling them with a profit.  

We believe this is detrimental to the primary purpose of NFTs that we see in artists selling an artwork to their fans and giving the fans an opportunity to support their favorite artists. We therefore allow the creation of NFTs that can be sold only once, as a token of appreciation. 

##### Speeding up beyond IPFS 

The interplanetary file system (IPFS) protocol has many advantages, but it has a certain weakness when it comes to NFTs. As the data for each unique NFT is unique, it will not be spread across IPFS as it is accessed mostly by its owner. As a consequence, IPFS cannot function as a content-delivery network (CDN) here, and access timing will suffer. 

We are using caching and CDNs in order to speed up access to the NFTs so that no matter where you are, access will be as good as can be. 



The presentation of art is crucial, whatever form the art takes. That’s why Kollektor.io provides a gallery function in along with the NFTs themselves, which the artist can customize. An appropriate presentation ensures that the artwork can be enjoyed and appreciated.  

Because art is not about speculation. It’s about experience.   


Placing the enjoyment of art at the center: How to create enjoyable and performant NFTs 

NFTs are simply tokens on a blockchain. Like entries on a ledger, they do not contain the media data they represent. Instead, they carry a link to that data. A blockchain may last forever, but the lifetime of the NFT is limited by the longevity of the validity of that link.

Here’s how we ensure it doesn’t get lost:  

#### IPFS for storage of media files 

In most cases, and for Kollektor.io, the link stored in the NFT token is a pointer to an IPFS hash.  

IPFS, the interplanetary filesystem, is a peer-to-peer network that holds data as long as one participant holds that data. While this is much better than storing data on one server only, IPFS can also ‘forget’ data. 

To guarantee that data will live in IPFS for a very long time, Kollektor.io uses a mechanism called pinning. We pin the data ourselves and use multiple services for pinning (Pinata and NFT.storage at the time of writing) to make sure that the data will live longer in IPFS than Kollektor.io. 

#### IPFS for meta-data 

Simply storing media data in IPFS was enough for the initial implementation of NFTs – when no standardization was yet necessary because only one type of content was used.  

To enable NFTs to be bound to any kind of media data, NFTs are now linked to meta-data. That meta-data points to one or more media files, and additionally contains machine- and human-readable descriptive data. 

#### Open-Source access to meta-data 

Standardization has not advanced a lot in the NFT space, and while there is some interoperability between marketplaces, every service or project has their own standards for meta-data. 

To enable access to meta-data, and thus enable access to the NFT forever, we are publishing a public API, and open sourcing not only an API client, but also the definition of our meta-data format. 

  

We want your data to be safe and accessible as long as possible. This is why we use IPFS storage in addition to multiple pinning services and want to enable open-source access to the corresponding meta-data.  


Creating long-lasting NFTs: How to store data in a reliable way

You’re a creator? Why selling your artwork as NFTs might be right for you.

In the growing creator economy, smaller groups of enthusiastic fans increasingly gather and build a community around a creator and their work. This means that you don’t have to be a traditional commercial success as an artist anymore – rather, a niche but dedicated community that supports and identifies with your work can allow you to thrive as an artist.  

In such, NFTs have potential beyond their hype, and beyond just being another revenue channel. The flaws of the current technology notwithstanding, the development of the NFT market regarding creators needs to be observed.   

###### To reiterate what sets NFT technology apart: A non-fungible token (NFT) is a digital certificate of ownership stored on a blockchain. They are used to reliably authenticate and transfer asset ownership. This means that current and past owners, as well as the creator of an NFT, can always be verified. 

What value can creators derive from selling their work as NFTs? Let’s look at two advantages which carry notable potential:  The selling of digital assets as such, with all its benefits, and using NFTs to develop fan engagement and loyalty.  

  

##### 1. Digital asset sales.  

With NFT technology, selling digital media directly as digital file is finally a viable option for creators. 

Digital art can be bought and owned digitally, making the purchase of physical assets elective, instead of obligatory.  

Furthermore, NFTs can be linked to any type of media, so they are accessible to many types of creators. This invites new hybrid ways of making and displaying art: i.e., linking traditional art with time-based media like audio, video, or 3D art.   

These digital NFT sales can generate additional revenue, without costing much extra work – if you use the right tool.  

##### 2. New ways to drive fan engagement.  

Because ownership of the token can be verified in real-time, a unique connection between owner and creator can be formed.  This direct connection allows the creator to build engagement through continuous involvement and rewards, all while receiving reliable feedback. 

Let’s provide some hypothetical examples of how to build collectibles and gamification mechanisms for more engagement and reward your fans with exclusive content: 

*   Access to an exclusive event, for example a meet-and-greet, as a reward for holders of high-value artwork. 

*   You could surprise owners of all parts of a collection with continuous additional content.  

*   A collection, in which each illustration, for instance, unlocks a unique behind-the-scenes video.  

*   Access to an exclusive event, for example a meet-and-greet, as a reward for holders of high-value artwork. 

*   You could surprise owners of all parts of a collection with continuous additional content.  

These are just examples of how you could use NFT technology to incentivize and reward your fan community.

Because your fans are rewarded for their personal engagement and loyalty with unique benefits, they would come to associate something personal and uniquely valuable with your art. They can now express themselves and represent their identities by displaying the collections from the artists they support. (With developing technology, these rewards could in the future be personalized specifically for each fan.)  

Apart from that, creators can gain reliable feedback about the preferences of their community by seeing who buys their work and how its market value develops through this process. 

In such a way, NFT technology presents an opportunity for artists and creators to sell their art digitally, all while growing their communities around their brand. Artists connecting with buyers, getting feedback, continuously sharing their work, and growing with their communities – all this has real value for artists and fans alike. 


NFTs for Creators

Conventionally, malicious actors have multiple ways of tampering with NFTs. It is vital to develop technology which prevent these kinds of tampering and thus secure the tokens themselves as well as confirm their ownership.  

#### SECURE TOKENS 

##### 1. NFTs can only be as secure as their underlying technology.  

Algorand has chosen a fast but very secure consensus mechanism: It uses a decentralized Byzantine Agreement protocol that leverages pure proof of stake (Pure POS). This means that it can tolerate malicious users, achieving consensus without a central authority, as long as a supermajority of the stake is in non-malicious hands. This [consensus protocol](https://developer.algorand.org/docs/get-details/algorand_consensus/#:~:text=Algorand%20consensus%20The%20Algorand%20blockchain%20uses%20a%20decentralized,supermajority%20of%20the%20stake%20is%20in%20non-malicious%20hands.) is very fast and requires minimal computational power per node, giving it the ability to finalize transactions efficiently. 

Further, Algorand does not fork, thus guaranteeing that every transaction on the blockchain is final. This adds a level of security and stability that doesn’t exist on Bitcoin or Ethereum. 

  

##### 2. NFTs are only as secure as their definition.  

On most blockchains, NFTs are defined by their interface. That means that the level of security is extremely low because the implementation is not standardized, and the contracts are not peer reviewed before use. This gives malicious actors a large amount of attack vectors. NFT contracts can, for instance, contain code that allows specific accounts to control them. They can even contain malware and attempt to steal cryptographic currencies stored in the same account as the NFT. Also, NFTs on most chains can simply be dropped into an account, creating new opportunities for spam and online harassment. 

To prevent this, we are using Algorands Layer-1 NFT implementation, and consequently, the behavior of our NFTs on Algorand is defined by a standard implementation that cannot be tampered with. Rather than writing a program to control the lifecycle of an NFT, we configure it. NFTs on Algorand cannot simply be dropped to an account. Instead, the account needs to initiate a transaction to accept them. 

  

#### SECURE OWNERSHIP 

NFTs are simply a token on a chain that has been created by someone claiming to have ownership of the media the NFT represents, and the intellectual property that underlies it. 

There is currently no technical means of proving ownership. It is thus vitally important that the implementation provides opportunities for that ownership to be checked manually by a prospective owner. 

**For this reason, Kollektor.io is adding two innovations to the NFT space to make it easier to check the claims of ownership:** 

###### 1. De-Anonymization of creators 

Typically, blockchains use accounts to identify its users. These accounts are often represented as long hash values, and while they are easily trackable, they are anonymous, or rather pseudonymous. Every creator can have one or several accounts, as can every malicious actor. It is thus crucial to bind the identity of the creator to the account. This is why we document the ownership of artists’ social profiles using the [W3C standard of verifiable presentations](https://www.w3.org/TR/vc-data-model/). 

######  2. Documentation of the creative process 

Kollektor.io is a member of the [Creative Rights Initiative](https://bit.ly/3Mrh6n0). Its mission is to identify who created an artwork, what tool was used to create it, and what interaction the artist had with the tool. Spearheaded by Wacom, CRI will enable NFT collectors to understand how exactly a media file was created, thus making simple copy-and-paste forgeries impossible. 


How we make sure our NFTs are secure

The reason we run Kollektor.io on the Algorand blockchain is that we found it to be the best-in-class when it comes to scalability and low energy consumption.  

If you do the numbers, NFT creation with Algorand uses only roughly 0.0000004 kg of CO2 per NFT, compared to around 163 kg on competing blockchains. That means it is around 400 million times more efficient. 

> “Algorand developed a public blockchain that runs on a version of proof-of-stake, which drives electricity consumption to almost zero. \[…] on a fundamental level,” Silvio Micali said, “I care about the planet.” - CNBC: *Bitcoin and blockchain consume an exorbitant amount of energy. These engineers are trying to change that.*

Algorand is a public blockchain that adds a uniquely scalable consensus algorithm to a proof-of-stake network. 

Our usage of Algorand is based on four principles: performance, direct usage and adoption, instant verifiability, and simplicity. Let’s dive deeper into some of the reasons.  

1\. PERFORMANCE.  Our primary focus early on is ensuring the utmost performance of the Algorand blockchain. However, it is also vital to retain the decentralization of the Algorand blockchain. Whenever operational requirements become too heavy, they commonly fall into fewer and fewer hands. In this way, centralization has a devious way of creeping in, and one of the main avenues for this type of creep is performance.  

2\. DIRECT USAGE AND ADOPTION.  It is not enough to simply develop new tools. The development of general-purpose capabilities is like boiling the ocean in an effort to catch a specific fish. Instead, there must be a rigorous focus on the specific purpose and utility of the tool being developed as driven by the precise needs of the community. Our efforts focus on building those fundamental layer-1 and layer-2 capabilities that will drive accelerated, broad-based adoption of our platform. 

3\. INSTANT VERIFIABILITY.  Blockchain promised transparency by making information available across the entire chain. However, when data on the chain grows exponentially, transparency erodes, leaving critical data hiding in plain sight, lost among the volume of information available across the chain. Sidechains in particular are often implemented by dumping corresponding transactions in general blocks. This obliges the users to scavenge the entire blockchain to reconstruct information relative to the sidechain in question, much like finding a needle in a haystack. Such careful combing of the blockchain may take months, and the time required to verify an assertion greatly diminishes the potential value the blockchain overall. 

4\. SIMPLICITY.  Underlying all our technical innovation is the fundamental principle of simplicity.  Simplicity is the ultimate sophistication, and is the gateway to broad participation, reliability, and trust. An effective solution needs to be as simple as possible.  


Creating sustainable NFTs using Algorand  

We are focusing on ways for NFTs to increase their value over time that do not rely on being hosted on a specific platform, as resale revenue often does. 

Rather, the value increase will come from the interactions artists and creators build with their collectors – using the unique capabilities of NFT technology.  



##### Towards implementing shared revenue for Creators  

NFTs are only once sold by the artist. There is a multitude of ideas that artists can get a share of the revenue that collectors make when reselling NFTs.  

However, there is no existing standard that would prevent an NFT holder of selling the artwork without paying the artist a fee. Rather, the NFT holder must use the same platform to resell the NFT for the artist to receive anything. 

We are working with Algorand to implement revenue sharing as a platform functionality, thus enforcing it regardless of the platform used. 

##### NFTs that connect Artists with their Fans 

Kollektor.io believes that in the future, a lasting value for artists will be created if they can use NFTs not only to sell, but also to connect with their fans. We will enable artists to interact directly with current and former NFT holders and allow them to build and strengthen their community. 

##### Real-world interaction and NFTs 

Kollektor.io has been integrated in various ways with the real-world using QR codes and NFC tags. Real-world interaction can be connected to the creation and distribution of NFTs, as well as a prerequisite for purchasing NFTs. 

##### NFTs as keys to virtual services and the metaverse 

Kollektor.io builds sustainable and scalable NFTs.  

We are building an API and a client library for the API to allow any service partner to check for ownership of an NFT, and thus enable their use in virtual services and the metaverse. 

  

To summarize, NFTs can grow in value in different ways, depending on their implementation. We are building Kollektor.io with all these organic ways of growth in mind, including revenue sharing, community-building, and interactivity spread through the real world and the metaverse.  



What we do