What You Need to Know About NFTs and How It Can Help Businesses
BY Chris Loomis
NFTs are becoming more popular these days, although not yet as mainstream. A lot of people are still having doubts about the use of non-fungible tokens, or NFT for short, and whether this is just a fad that will go away eventually. Nonetheless, its popularity is continuously on the rise.
This article will explain what NFT is, where it came from, where and how it is used, and how it can benefit your business. A digital marketing expert will help you with making the most out of your digital resources, including NFTs, to grow your business.
What is NFT?
Short for Non-Fungible Token, NFTs are digital assets that enable users to own digital and even real-world assets such as real estate, computer programs, artworks, and photographs among a few. When you say fungible, it means they are replaceable which is why it is difficult to assign ownership of these aforementioned assets because it is easy to recreate them.
With NFTs, these assets whether real-world or digital will become unique. It somehow resembles an authenticity certificate only that asset has, and that you are the only owner of it. These are logged on blockchains, digital ledgers that show ownership proof of digital assets. NFTs, like cryptocurrencies, can be sold or bought on blockchains and ownership can also be publicly verified.
Ethereum is the most popular blockchain being used for NFT transactions. Cryptocurrency and NFTs are also often used interchangeably but are actually two different things due to the latter’s “non-fungible” nature. Cryptocurrencies are unlimited, while NFTs are unique and only available in limited amounts.
Uses of NFTs
As mentioned, NFTs are unique and help in assigning ownership to digital data and even real-world assets. It can be used to represent digital art including photos, music, videos, artworks, sports highlight clips, and memes among a few. Likewise, it can represent real-world assets such as patents, event tickets, real estate, and invoices.
As mentioned, NFTs are not yet mainstream, and learning how it works may take some time. Blockchains, as also mentioned, are public ledgers where crypto and NFT transactions are documented. NFTs are then minted which later on transfer ownership of digital and real-world assets to the owner.
The minting process involves creating a blockchain, validating the data, and recording the information into the blockchain. You can also store NFTs using a digital wallet (ex. Ethereum wallet) which works like a banking app minus the bank.
How NFTs can benefit businesses
Most people think NFTs are just a fad. But some digital experts believe that NFTs can be profitable in the long run. For one, NFTs can help companies be ahead of their game. Some potential benefits of NFTs to businesses include:
- The ability to connect an NFT with VR and AR for a more customer-centric brand experience
- Helps in streamlining business operations and finances
- Ensuring authenticity and security as NFTs cannot be easily reproduced
- Ease of trade by using NFTs
- Create brand awareness, interest, increase revenue and conversions
Here are also ways to use NFTs to benefit your business.
- Encourage customers to buy limited edition NFT versions of your items
- Create contests using NFTs as a prize
- Contact a digital marketing expert in Franklin TN to get to know more about NFTs and how they can make the most out of your business.
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