March 29, 2023

How NFTs Will Change The World for Businesses & Consumers

How NFTs Will Change The World for Businesses & Consumers

Unless you’ve been living under a rock, you’ll have heard of, or been swept up by, the hype surrounding NFTs, the metaverse, and cryptocurrencies. NFTs became incredibly popular in 2021, but the vast majority of people only understand them to be digital artwork. While digital artwork is an important part of NFT culture and one of the reasons it became so popular. They’re actually much more than this FOMO-driven, crypto millionaire craze.

It’s a bold statement to make, which is why we’re going to explain how NFTs will change the world. Current and NFT future uses will transform the way businesses and consumers interact. Brands and NFTs are a match made in heaven. They have the power to provide customers with better experiences and additional products, while building trust through transparency and security.

Anyway, let’s learn how NFTs will change the world.

What Are NFTs?

Firstly, we can’t tell you how NFTs will change the world without first introducing what they are. NFTs are Non-fungible Tokens. These completely unique assets can be digital or physical items and can be used to establish ownership.

Every NFT is stored on the blockchain, which is a single source of truth that can never be tampered with. Essentially, the blockchain works as a ledger for the history of any NFT. You can see every time it was bought and sold, how much was paid for it, the wallet it was transferred to, and much more.

There are a multitude of brands already using NFTs, and we’ll get into discussing how they’re using them now.

How Are Brands Using NFTs to Benefit Customers?

Branded NFTs are a relatively new concept, but there are some big-name players already in the space, including Adidas, Nike, and Gucci. The adoption of NFTs will continue to expand as these established brands prove the concept for others to buy into.

Building Engaged Communities

NFTs are an investment. Depending on their popularity and the benefits they provide, they can be costly. However, with that in mind, brands are able to find their most engaged consumers from across the world and build a community for them. This provides benefits for both the brand and the consumers.

Usually, anyone holding brand NFTs has a strong connection to the products or services provided. Brands can leverage this by using them as a focus group for feedback, idea generation, and marketing campaigns.

In return, NFT holders will be part of a community of like-minded people and have the power to influence the activity of their favorite brand, making them feel truly valued.

Exclusive Benefits

Much NFT marketing revolves around holders being part of an exclusive VIP club. Membership in this club comes with a range of unique benefits or utilities. For example, brands might offer exclusive products, one-off experiences, early access to new releases, and much more.

Rather than simply buying an NFT for its art, for brands and consumers, it's the utility that drives value. If a brand can provide benefits their target audience would pay for – this will see their NFT project take off. However, if you’re reliant on just art, you’ll likely fail.

Corporate Social Responsibility & Giving Back

Consumers buy from brands that share their values. Whether that be sustainability, supporting children's charities, or fair pay for all suppliers. NFTs and the blockchain can bring transparency to the world of corporate social responsibility.

In a time when greenwashing is rife, NFTs can bring accountability.

Already, many NFT projects use proceeds from second-time sales to fund charitable efforts and supporting causes. Better yet, this can all be tracked by the blockchain. Now, brands can’t hide and consumers know they’re honest and can select companies who share their values.

Item Authenticity & Receipts

Currently, when you buy a high-value or rare item, you’re often provided with a certificate of authenticity. Typically, this is a bit of paper that can easily be tampered with, replicated, or lost, leading to fraudulent activity and fake items being sold as real.

Branded NFTs conquer this, giving all consumers the ultimate confidence the item they’re purchasing is genuine. As mentioned, blockchain technology is a single source of truth. Any high-ticket physical or digital item can have an NFT created to track its history.

As part of the production process, the NFT could be created, then transferred to its new owner when it’s purchased. From there, it can be passed to each new owner whenever it is sold, with its authenticity never in doubt.

Whatsmore, as technology evolves and more people begin to own digital wallets, it could become the norm that every receipt we receive in a store will be an NFT.

In Summary

The influence of NFTs on businesses and consumers is only going to grow. We’re in the early stages of adoption, but we’re already seeing how they transform how brands interact with their target audience.

Introducing NFTs to marketing and consumer relationships brings the trust and transparency that people need to make a purchasing decision. Furthermore, the additional benefits brands can offer their most loyal followers means they’re building engaged communities like never before.

To get a head start in the NFT and crypto game, why not choose the most secure digital wallet to store your assets? Learn more about Escrypto and get started today.

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