In 2022, non-fungible tokens (NFTs) have become widely known and used. Your favourite NFTs can now serve as your Twitter or Reddit profile photo, with Facebook and Instagram getting involved in the near future. Mass-market players and premium labels are launching NFT collections at a dizzying rate, driven partly by a ‘fear of missing out’ reminiscent of the dotcom angst of bricks-and-mortar businesses in the 1990s.
Most of the general public still find it challenging to understand the 2021 NFT world of Bored Apes and CryptoPunks. Additionally, the usability of the underlying blockchain technology is still far from being user-friendly for the average person.
However, we advise that you avoid thinking that NFTs are a transitory trend. NFTs may be the Web3 killer app and its entryway into traditional commerce, even though crypto-millionaires and TikTok-obsessed Gen-Z users may be the ones propelling the present hype cycle. The truly fascinating aspect of NFTs is the technology that powers them, which indicates their more significant potential as a means for businesses to escape the platform-centric marketing environment of Web2 and retake control of their online consumer interactions, according to experts from Bitcode Method.
How Can Companies Use NFTs?
NFTs aim to open up additional business options in addition to the sale and purchase of GIFs. NFTs offer new ways to invest in digital assets, trade money, and fund projects.
Currently, there are two primary ways that businesses can employ NFT technology:
- Create an NFT marketplace and generate revenue from service charges. NFT markets let consumers browse various products for sale and buy them. They also let NFT developers sell their digital tokens. Since NFTs can represent digital works of art, musical recordings, and even tweets, marketplaces vary depending on the blockchain platforms they utilise and the types of digital assets they list.
- Make your own NFT tokens and mint them.
Although you may lament the sluggish consumerisation of the underlying Web3 technology, you can, nonetheless, start making incremental improvements to NFT connections with your goods or services. You could give away a tangible item connected to a digital collectable NFT to flip the notion of an NFT as a digital token of ownership of a physical commodity.
How Do Companies Benefit From NFTs?
Having NFTs brings awareness to your company. Even though the NFT buzz started in 2018, initiatives that produce non-fungible tokens continue to garner clickbait headlines in the media and audience recognition. Some businesses start an NFT project to increase the value of their products and services or for marketing reasons. Either way, you may significantly promote your brand and raise your chances of attracting new clients.
If your brand has NFTs, it allows transparency of your product lifecycle. Blockchain technology is already used by businesses to guarantee the accuracy of supply chain data. To gain your consumers’ trust, you can utilise NFTs to track products during their entire lifecycle and prove their authenticity.
According to the Bitai Method official site, Businesses that use NFTs undoubtedly gain additional income. A collection of NFT products may provide additional revenue. For instance, you may market digital artwork based on your company’s mascots, goods, and services. Some companies offer customers discounts or complimentary products while selling NFTs to boost sales. Alternatively, you might provide brand-related NFTs as tickets to exclusive community gatherings.
Your company will have further data and transaction security. NFTs continue the blockchain’s legacy of secure data storage while maintaining transparency. Each token’s individuality can be used to ensure data immutability and record correctness. In addition, your business can easily prove product authenticity as Blockchain promises tracking and a more secure history of products and services, including their transactions.
Lastly, as a company, you can attract capital. NFTs can be used to raise money for starting new ventures. A ground-breaking example of employing NFTs for crowdfunding in the film business is the film Antara. The Antara Movie NFT, the first NFT that partially enables buyers to own the rights to a Hollywood picture, will go on sale in January 2023, according to the Antara producers.
It will initially seem intimidating to wade into the murky waters of Web3. Through trial and error, extensive research, and observation of what succeeds and fails for others, brands must gradually learn what works for them. Remember that sincere exploration and adoption, like with Web1 and Web2, will bring you more significant results. Go easy on the WAGMIs. Faking community involvement using NFT terminology in social media posts can backfire and make one appear out of touch. Your token NFT art collection efforts will likely not get you further than your dotcom period vanity websites.
The good news is that there will be plenty of time to understand the space because the full impact of NFTs will emerge gradually over the coming years. The entirety of your current and potential clients make up your eventual audience, not just the current crypto community. Therefore, avoid gauging your performance by your NFT prices on OpenSea. Instead, focus your measurements on those that more clearly depict a future in which NFTs serve as the foundation for all physical products and experiences while extending them into the digital environment of your choice.
Author: Hannah Parker