NFT was the most trendy product in the crypto world last year. Many celebrities and sportspeople were selling their NFT art and thus earning millions. Digital art is not the only solution to employ this technology. This article will provide you with examples of utilizing the NFT technology to improve your business.
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A brief explanation of NFT
NFT (non-fungible token is a sort of a digital passport (a unique code) that can help to prove the authenticity or the uniqueness of certain physical or digital assets, e.g., digital illustrations, videos, music, texts, 3D models, real estate, patents, loan agreements, etc. Since NFT storage is on a blockchain, it is almost impossible to steal, hack, or counterfeit. Yet, they are easy to trade, just likewise regular currency.
Furthermore, for storing the NFTs, the blockchain provides information on the current owners, the price at which it was sold, and the former owner. This makes NFT the best instrument to prove authenticity and protect the copyright on any physical or digital assets. Many creators and brands began to use it to monetize their art.
How is NFT used today?
Digital art is not the only way to efficiently use NFTs. This technology helps optimize and make various processes more cost-effective, regardless of the size and the niche of a business.
1. Marketing and advertising
The most apparent solution to employ NFT for business is marketing support. Many brand names use this technology to attract the attention of the public and mass media to a particular project. For example, Coca-Cola minted their ‘Friendship Box’ NFT collection in 2021. It was a box stylized as a soda machine. The users who opened it received unique brand clothes for the Decentraland game. Moreover, at the end of 2021, Coca-Cola created a collection of Christmas NFTs.
Pepsi, McDonald’s, Nike, Adidas, Bacardi, Warner Bros, Louis Vuitton, and many other renowned companies launched the same advertising campaigns. Small and medium businesses also employ NFTs to advertise their products and services. A Russian service, ‘Samokat’ for online delivery, created an NFT collection called ‘Pelmeni’ and giveaway it within the community of users.
Rainbow dumplings. Sausages and pasta from the ‘Samokat’ NFT collection. Source
NFTs are an excellent instrument that will help to improve loyalty programs since they provide proof of the authenticity and ownership rights that can be verified at any moment. If loyalty cards were NFTs, they would be more secure and easier to use. Moreover, it would boost sales since the clients will never lose or forget their loyalty cards. They will just upload the NFT into their mobile wallet and use it for purchases.
Moreover, a business can also create their NFT collections and giveaway them to their loyalty program participants, like Taco Bell, Burger King, Clinique, Louis Vuitton, Marriott Bonvoy, and other brands. For instance, Burger King added QR codes with NFTs to six million ‘Keep It Real Meals’ packages. Collecting the NFTs brings certain benefits.
‘Keep It Real Meals’ with NFTs inside. Source
Altering the liquidity of products and services
NFTs are cryptocurrency tokens. Anyone can buy or sell NFTs on an appropriate platform, and the easiest is just to transfer them. NFTs are super-simple, and they can be used to tokenize any physical, digital, or intellectual assets. Furthermore, they help to pass the ownership right for the asset. Trading tokenized assets is just as simple as trading cryptocurrencies.
Create an NFT that provides the right of ownership for real estate. Going the traditional way requires a lot of time, money, and effort, while selling real estate via NFT will take seconds. The same will work for selling a car, furniture, copyright, or services. NFTs make all these operations straightforward.
The interior of a flat in Kyiv (Ukraine) that Michael Arrington, the founder of TechCrunch and Arrington hedge fund, sold for 36 ETH($93.4 thousand) as an NFT. Source
Improving the supply chains management
The primary function of NFTs in supply chains is the authentication of the products and verifying the quality and origin. For instance, your clients should check the storage conditions and source if you sell food. NFTs make it significantly more straightforward thanks to special sensors that will track via GPS the temperature, humidity, etc., and then it will record the data into the blockchain and link it to the NFT of the product.
Besides food, NFT can help with electronics, clothes, shoes, cars, furniture, building materials, medicine, perfumes, instruments, equipment, toys, and other supply chains. In general, NFTs are an excellent tool for any product that requires tracing services and authenticity proofs.
Tracing a supply chain with NFT and QR codes in the Matic Network functions on TO Network. Source
Reliable fund rising for any purposes
If your business requires funds to update the production, open a new office, launch a new product, or have other aims, you might start an NFT campaign as a cost-effective alternative for bank loans. Consider it secure and straightforward crowdfunding, where you can state the conditions in the NFTs. For example, you can note that the NFT gives a right for receiving dividends or a right to own a share of the business.
Moreover, NFTs are a superb tool for charity and social projects. NFTs were already employed to help Afghanistan women after the USA army left. A similar program can be started to help a city or state and support local charity organizations.
All funds received for selling the ‘Friendship Box’ by Coca-Cola were donated for charity. Source
Licenses, certificates, registrations
Many trust paper certificates might look authentic and official, like copyright proofs, medicine recipes, diplomas, and other certifications. However, counterfeiting these documents is popular today.
Before, this issue was solved by special paper, unique stamps, holograms, seals, micro-perforation, micro-text, etc. Nonetheless, it will not give you a 100% guarantee the document’s authenticity since any paper can be counterfeit. Moreover, these protection methods can not be digitized, making the situation even more complex.
NFTs offer a solution. If each certificate, license, diploma, or other important document will be issued as an NFT, too, then this issue will no longer be an issue. The NFT vaccination passports in the San Marino Republic and the diplomas in the Kanpur technological institute in Indonesia are excellent examples.
- Yet ‘diploma factories’ sell about 200 hundred thousand fake certificates to their ‘students’ (read clients).
- About 75% of HR managers found fake information in the candidates’ resumes.
- There are a lot of websites that offer fake diplomas on the Internet.
- A fake degree will cost $500 to $2500.
San Marino green pass issued as an NFT. Source
Copyright and patents
When it concerns intellectual property and copyrights, a record proving that you are the owner will help you a lot if your rights are violated. The patenting process and confirming the rights for intellectual property takes a lot of time. Passing these rights to another person or company is not a bit simpler.
Altogether it makes the operations with patents more complex, and some contracts of purchase and sale take years. Especially when the patent is issued, one country and a person need to prove it in another country. With the help of NFTs, it will all be done in just a few clicks.
The other helpful solution provided by the NFT technology is online person identification. This technology is so developed today that teenagers can falsify any photo or video. For example, it is possible to replace Arnold Schwarzenegger in the Terminator with Sylvester Stallone. It is just as easy to replace a person’s face on an online exam or while taking a loan on the Internet.
The NFTs help to solve this issue. It only requires issuing identity documents as a non-fungible token. It will help prove the identity and give control over using your data. For example, you will be able to control whom to share your data with, and you will get paid each time your data (NFT) is transferred from one company to another.
Moreover, NFTs will help keep the identity from one Metaverse to another, as Mark Zuckerberg showed in his video presentation, where he dwelt on the plans to create the first real Metaverse.
In the video, the avatar of Mark Zuckerberg kept the appearance and clothes while going from one virtual office to the virtual sea. This is an example of the continuity of identity.
Tickets membership cards
In recent years, the ticket industry for sports, musical, educational, and other events has suffered from scalping (reselling the tickets). According to the survey, every 10th ticket in the USA is fake. The speculators buy about 40% of the tickets to popular events. Were it not for the issues of a traditional paper ticket, they could have cost 27% less if there were only online versions. Namely, paper tickets require printing, delivery, and sales organization.