The boom around NFT has led some to assume that this technology is short-term and hype, nothing more. However, its usefulness & practicality says otherwise.
What is NFT anyway?
A non-fungible token is a unique digital certificate or an asset that is stored on a blockchain, gives exclusive rights and guarantees authenticity.
In simple terms, every entry on a blockchain is called a token and all tokens like coins of the same monetary value are equal and interchangeable. And cryptocurrency work exactly on this principle: one Bitcoin or Etherium can be easily replaced with another one. But an NFT mechanism is different.
A non-fungible token is a special digital coin that CAN’T be changed or replaced – each NFT is inseparable, unique and exists in the only copy.
Currently, NFT tokenization is a way to transfer unique items from the real world to blockchain environment where they can’t be stolen, forged or deleted.
The practical applications of NFTs
Non-fungible tokens have already stimulated the developing of new business models and concepts, attracting more and more investors to the industry. NFT space is transforming from raw and experimental into useful and massive scope.
In fact, almost any asset can be converted into NFTs: virtual real estate, works of art, musical compositions, trade secrets, program codes, engineering schemes, etc. And, presently, most of digital collectibles and crypto art are stored on specialized NFT marketplaces but this is not the only usage of NFTs.
Tokenization of the assets can be used to confirm the authenticity of unique products in a wide variety of areas from retail to real estate. For instance, it can certify the right to receive confidential data or provide access to an exclusive club, serve as club card or ticket to the event and allow the owner to receive financial benefits & rewards.
NFT technology can also be effective in the logistics. Full transparency and immutability of metadata guarantee the validity of information in the supply chain. This data can be very important and valuable for customers of food, medicines and other perishable goods.
Why your brand needs to use NFT
NFTs open up a completely new world of brand interaction with customers. It is even similar to starting a new business. The release of NFTs is about generating a unique digital experience for audience, collaborating and building your own loyal community. NFTs are forming a completely new segment that allows to retain control and copyright over the assets without fear of copying and fakes. This is really a revolutionary model of monetization and ownership of digital property, isn’t it?!
So let’s look how well-known brands dive into NFT.
The competition for organic reach has become a great headache for many digital marketers and companies. NFTs help to grab the attention of clients easily and unobtrusively! The brand will be mentioned in press (almost for free!), discussed in crypto communities and figured in industry materials that necessarily result in increasing sales in a short period of time.
Such major brands like Pringles, KIA, Taco Bell have released NFTs just to hype and show that they come up with the times.
Hubs and communities are actively formed around NFT products. For brands, they are a new channel of communication with a loyal audience and opportunity for profit.
NFTs can be used as authentication certificate or membership card that provides access to rare thematic products or special events. The NBA TopShot marketplace, for example, allows basketball fans to buy NFTs with moments where key events and achievements of the National Basketball Association has happened.
Personalization & product configuration is one more advantage that brands can extract from the Metaverse.
Product configurator is a tool that purchaser can use to adjust the product to their requires in real time and, for example, try it on. Thus, a customer gets the opportunity to understand whether this product is really what he needs.
The special usefulness of non-fungible tokens is that they represent rare items and unique experience. They can be used to track and monitor goods during the delivery process, for example, to view detailed information about the order, route and point of sale.
NFT is a great way to raise money for charity.
The Coca-Cola company sold a collection of NFTs for $575 thousand and sponsored the Special Olympics, an international organization that organizes competitions for people with mental disabilities.
The metaverse is a source of new audience & the formation of another revenue stream. Selling virtual goods, clothing items and in-game products are great ways to attract youngsters that will most likely be the main part of users of virtual worlds.
Many digital artists have already selling their art for hundreds and thousands of dollars. The principle of exclusivity turns NFTs into a great way to enshrine the rights to any unique object.
If your business involves creating something rare and unique, NFT can serve as an additional monetization opportunity.
In the near future, a huge number of different scenarios will be implemented with the help of NFT. And the sooner you realize it, the faster you can take advantage of it!
So if you see huge growth prospects for your brand in NFTs and the Metaverse, Web3soft expert team will be happy to take you by the hand and guide through all the stages of launching your thriving NFT project.