Cryptocurrencies, Blockchain technology and NFTs, have been all the buzz lately. They are finally beginning to be used and adopted as legit payment methods by regular people, not just techies. So for some, it might be time to wonder if it’s the right moment to incorporate them into our businesses.
In this article, I will focus on NFTs or non-fungible tokens, but before diving into how we can use them in our business, let us first define and explain them.
NFTs are a potent type of token said to revolutionise digital assets and ownership. They can represent physical and digital assets on a blockchain, and their main properties are that they are unique, traceable, rare, programmable and indivisible. They allow for digital scarcity and demonstrable ownership of individual assets.
NFTs can be anything digital: a photo, a video, a GIF, a piece of art, a cartoon, etc. And while anyone can copy or download that file (just like many copies of physical art), buying an NFT provides proof of ownership of the digital asset.
People can buy, sell and trade NFTs in marketplaces supported by blockchain technology, like when we were kids and used to trade baseball or Pokemon cards back in the day. All transactions are recorded on the blockchain so that there is verifiable proof that the owner of the NFT actually owns it, authenticating the whole process.
So, why are NFTs beneficial for your business, and how can you begin to benefit from them?
Well, since NFTs can take so many shapes and forms, they are very adaptable to represent any type of innovative product, like digital properties (real estate in the Metaverse), fashion design, a novel, a poem, a poem, a drawing, etc. Incorporating NFTs into your business will allow you to interact and give your customers one-of-a-kind experiences. Your customers can be sure their experience is unique or that they cannot get the same experience from another company because of the characteristic individuality of NFTs.
NFTs open up a whole new world of possibilities for generating revenue for your business and attracting new clients. For example, you can create NFTs for your business based on your logo, distinct font type, artwork, company mascot, etc. An excellent example of this is Disney, who now and then set loose a new collection of NFTs relating to many of their famous characters, like Star Wars, Mickey Mouse, etc. Another good example is the fast-food giant Taco Bell, which also released a set of GIFs based on their menu, which sold out within minutes. The restaurant chain donated all the proceeds to their charity organisation, the Taco Bell Foundation.
Since NFTs are still not so widely adopted and accepted by the majority of people, but on the other hand, are predicted to increase in popularity and influence the way we think about ownership in the future, if you jump on the train now, you can benefit a lot more by being a veteran in the space when they become commonplace.
Here are some ways you can use NFTs in your business:
One of the most natural uses for NFTs for businesses is loyalty programmes. You can leverage NFTs as a brand loyalty device in the same way we use membership cards, whether physical or digital.
Offering NFTs before the launching of a new product will generate hype around your product and attract potential customers.
Proof of Purchase or Proof of Membership, brands can offer their customers NFTs when they purchase, like belonging to a club or community because you bought from a specific company. And people love
Companies can offer their NFT holders special terms and conditions, like discounts and access to events and communities.
NFTs can also provide a competitive advantage to brands through loyalty-focused efforts.
You can also sell your business’s NFTs to raise money for charity.
Somi Arian is a tech expert, founder of FemPeak, author of Career Fear (and how to beat it), owner of the Somi Arian Podcast and is a LinkedIn Top Voice.