A lot happened during 2021, including the Capitol riots, Reddit Vs Wall Street, and the Battle of the Joshes. But nothing hit quite as hard as the November NFT boom, which saw the crypto market reach new heights and blockchain technology finally find mainstream traction. When you compare NFTs to other digital innovations, they’re at an infantile stage, but that hasn’t stopped the application of NFTs in business from becoming a hot topic.
What Are NFTs?
If the NFT train somehow left the station without you, we need to catch you up. NFT stands for non-fungible token. As the name suggests, they have no value in the real world. By leveraging smart contract technology bought to life on blockchains, unique digital codes can be added to a wide range of digital media and added to decentralized marketplaces. When someone purchases an NFT, the transaction is added and encrypted to the blockchain, and proof of ownership is demonstrated with the unique code. This NFT guide for dummies has more info.
Create and Sell NFTs Digitally
The most obvious way to integrate NFTs into your business is to create a line of unique NFTs, whether it be digital art, videos, or music. Minting an NFT is as simple as opening a crypto wallet and uploading your work to an NFT marketplace. Alternatively, you can enter the Metaverse by creating unique branded items to be sold in games like Decentraland. The NFT world is in a constant state of flux, which is why you need to follow the latest NFT updates.
Physical Products as NFTs
“Hold on a minute, I thought NFTs had zero real-world value”, is what you’re probably thinking at this point. This much is true in that NFTs can’t be converted into real-world assets as cryptocurrencies can. However, businesses can create virtual interactions with physical products and mint them as NFTs. Then, having the unique NFT stored in a digital wallet proves ownership beyond doubt. The best example of this can be seen in real estate, where property portfolios can be minted into NFTs and sold without the need for third parties, making the market more liquid.
Counterfeiting costs companies in the US billions of dollars, and it happens across almost every industry. The emergence of NFTs has opened doorways to a new strategy that may prevent counterfeiting completely. This concept has already been adopted by premium winemakers Acker wines, who now sell NFTs with their fine wines. This technology can be applied to any business hoping to reduce counterfeiting including event tickets, licenses, ownership certificates, and much more.
The NFT landscape captures the eyes of thousands, so use it to boost brand awareness. Fast food giants Taco Bell released a collection of 5 brand-themed NFTs dubbed “TacoBellNFTs, and they sold out within minutes. Exposure within the crypto landscape increases audience awareness and drives traffic to their restaurants.
Blockchain technology is gearing up to change the face of businesses forever, but it will take time. If you want to get involved in the fun of NFTs, then explore the options outlined above.