NBA Topshot Explained in Simple Words

 What is NFT? How does it work?

NFTs, Cryptoassets, Blockchain – all these words are trending in the news. Starting just last October, NBA Topshot has completed more than $230 million worth of transactions of their digital collectibles. It has taken the sports world by storm for the last few weeks, selling collectibles at sky-high prices.

One could wonder what is the fuzz about it.

NBA Topshot is a blockchain-backed platform, which enables NBA fans to buy, sell, and trade their officially licensed moments, such as video highlights.

In June 2019, NBA, NBPA, and Canada-based Blockchain company DapperLabs joined together to create the platform Topshot. DapperLabs CEO explained it will make the unforgettable moments of the game collectibles and allow the fans to own them forever. Blockchain technology will ensure that.

It could be compared to the physical sports card. Fans have been collecting sports cards of their favorite teams and starting forever. These are virtual cards of individual highlights, backed by blockchain, which ensures unique and one-and-only ownership.

Highest Rate highlights atm in Topshot marketplace

How does it work?

NBA creates official highlights of unforgettable brilliant moments. DapperLabs then works with them in detail; they decide what highlights will be converted to digital assets, and how many of them are they going to sell, and number them accordingly.

Like regular trading cards, DapperLabs arrange them in digital packs and put them on the Topshot platform for sale. The prices vary in a range of matters such as the type of the star, the fanbase, the quality of the highlights, etc. Users can buy the packs or they can buy individual moments from other users. Not every moment cost that high.

Up for resale

Upon purchasing, these digital collectibles go to a secure digital wallet, where they are exhibited or re-sold on the Topshot marketplace. All the Topshot highlights are officially licensed.

NBA generates revenue from the sales while DapperLabs receives a transaction fee and players get their cut. And, the Topshot buyers can make money through resell. Users expect to make a monumental overnight profit through resell.

This could be described as the future of the sports trading business.