Why Is It Important for Conventional Business Owners to Know About NFTs?
Across mainstream and social media, you might have come across words like blockchain and NFTs. For someone that is not up-to-date with the technical element of this technology, it can be difficult to make sense of these new phenomena. This article will provide you context into what NFTs are and why they could be the backbone of your business in the future.
Similar to the internet back in the 90s, NFT technology is rapidly evolving to offer unique use-cases to people around the world. These Non-Fungible Tokens are primarily ways to establish proof-of-ownership over assets. NFTs can be used to equate value to digital and virtual items and experiences by relying on a one-of-kind code stored on a public exchange to verify ownership.
In the future, practical applications of the technology are expected to provide businesses with the ability to provide unique value propositions to customers. A major example can be coupon codes that are not just text strings/numbers but coded digital items that are identifiable to provide discounts to customers. Other applications include the ability to assign unique value to video clips, digital content, and transaction.
Companies like Budweiser and Adidas are already implementing NFTs into their digital campaigns by linking their brand presence to the wider concept of digital connectivity. The concept of an interconnected digital metaverse is already taking shape, with leading technology stakeholders such as Facebook (Now Meta), Google, and Microsoft taking the lead. As the recent pandemic has taught us, looking towards future technology can be a great way to expand your business prospects and diversity your options.
NFTs have started to transform the global arts, entertainment, and business landscape in many ways. Platforms like the NBA Top Shot are allowing basketball fans to interact with their favorite stars on a new level by being able to procure timeless video snippets. OpenSea has also emerged as a significant milestone in the NFT world, with over $10 Billion in collective digital art transactions in 2021. The aggressive growth of these platforms in the short time span offers an insight into the expansion of the phenomenon.
The NFT sector is paving the way to the creation of the virtual property landscape. The ability to assign unique identifiers to virtual spaces is allowing brands and creators to engage with their followers in new creative formats. Platforms like Sandbox have managed to attract over 16,000 individual investors in their virtual metaverse with an investment volume exceeding $210 Million. These applications are just the tip of the iceberg in terms of the promise NFT technology can offer in the future. Knowing about the dynamics now can help you have a clear understanding of this phenomenon and gain a headstart over your competition.