Non-fungible tokens, being one-of-a-kind digital assets, find use in various contexts and markets. But before we get into specific cases of NFTs, let’s talk about why they’re useful and what we want to accomplish with them.
1. Address licensing concerns
NFTs have been widely debated for their potential to revolutionize the licensing industry.
For instance, creators may avoid haggling over royalties with licensing companies. Thanks to today’s sophisticated technology, artists may now upload their works to an NFT marketplace with only a few clicks. Due to the use of a smart contract, they can customize the transaction’s parameters and eliminate the risk of fraud.
NFTs provide businesses with a plethora of premium licensing possibilities, such as:
- Simple management of their resources
- Keeping tabs on royalties at a lower cost than with conventional licensing
- Payment terms streamlined across several regions
2. Establish product authenticity
NFTs are also connected to tangible items, expanding the blockchain’s promise application for monitoring products and establishing their validity. As such, NFTs may serve as digital certifications of authenticity, stored and tracked by the blockchain. In contrast to a traditional paper certificate, a token may display the whole lifecycle of the goods, from production to retail sale.
This is particularly useful for logistics and supply chains since it allows organizations to monitor their items in real time as they move through manufacturing and transportation. Enterprise NFTs (ENFTs) are digital tokens designed to address problems in the supply chain, manufacturing, and other sectors and may be used by enterprises for this purpose.
ENFTs may be used to:
- Represent ownership of items
- Keep tabs on your assets using customer relationship management software
- Make sure you’re getting a genuine product.
- Identifying and documenting property ownership
Luxury product manufacturers that risk having their products counterfeited might also profit from employing NFTs to authenticate. For example, when buying a physical thing, a consumer may be given a token to further verify the commodity’s legitimacy. By applying the same logic to the problem of counterfeit medications, we can speed up the authentication procedure and put an end to the problem more effectively.
3) Achieve your marketing objectives
The use of blockchain technologies may help firms get on the top pages and acquire tremendous brand visibility, which is something that businesses are already aware of.
Some examples of how marketers may make the most of NFT are as follows:
Establish a private membership area for your brand. Use NFTs as membership credentials to your closed network and provide your NFT holders exclusive access and privileges. Some of your services and goods could be available to NFTs for free or at a discounted rate. This way may offer webinars, video conferences, behind-the-scenes images, and blog articles with exclusive brand material.
NFTs are being sold by a few major restaurant chains, granting token holders access to premium membership benefits like discounts on food and activities. Nearly 1,500 tokens have been sold, raising $14 million for Flyfish Club, the first NFT restaurant.
Consider employing the proof of attendance protocol (POAP) when generating NFT invites. A proof-of-attendance protocol (POAP) is a non-fungible token (NFT) that serves as a memento and evidence of participation in a particular event, whether that event takes place. These tokens may be used in place of checking in or marking your location on social media without disclosing any personally identifiable information while still serving as tangible mementos like concert tickets. A company may use POAP badges to entice tech-savvy leads, recognize their most loyal customers, and get more people to attend their online or in-person events.
Provide digital collectibles. Trading cards and vintage toys are two of the most popular types of collectibles to buy and give as presents. Since NFTs cannot be duplicated, traded, or split, they have also become highly sought-after by collectors.
NFT airdrop may be used to disperse digital tokens. It operates in the same way as a cryptocurrency airdrop, in which a firm rewards its community members for participating by distributing crypto tokens directly to their wallets. NFT airdrops provide a wide variety of marketing options, many of which are industry- and idea-specific. For example, encourage your followers to participate in social media campaigns by offering them exclusive NFT collection goods as prizes.
4. Strengthen cybersecurity
Since NFTs are built on blockchain technology, they can automatically encrypt and store data to prevent unauthorized access while maintaining full transparency. Therefore, sectors like insurance and IP protection are optimistic about the future applications of these technologies. For instance, in the case of an accident, ENFTs may serve as evidence of ownership of insured items and a reliable record of claim events.
Other uses for NFTs in cybersecurity include making digital signatures to authenticate transactions and using them for authentication to get access to private data. By using NFT features like validation and smart encryption, these tokens may be used to bolster the safety of digital assets.
The potential applications of today’s cutting-edge technology are limitless. Since blockchain proponents are always thinking of new ways to implement NFTs, the range of practical applications for companies is certain to grow.
NFTs’ effects on a company will vary widely from one sector to the next.
Conclusion
If a company wants to expand and enhance its offerings, it must adopt new technologies such as NFTs. It may only be worthwhile to put in the time and money required if you first do enough research and thoroughly comprehend the commercial value.