Repeat after me: NFTs are more than just JPEGs.
It's easy to forget that behind each token is layers of technology supported by the blockchain. Artwork NFTs were predominant for a while, but other use cases have started to take hold as brands realize their potential beyond generating revenue.
We've written a lot about many of the "big picture" topics around NFTs. And we have made a lot of mention about utility, and how that's the biggest value unlock for these assets. Now, we want to go in-depth and explain what that means, how it works, and detail some types of utility and how brands can, well . . . use them.
NFTs were the seemingly overnight sensation of 2021. They made splashy headlines and created a wave of hype and speculation that held the potential for quick riches. And then it all came crashing down earlier this year. But that does not mean these assets don't have a future – quite the opposite. Speculation can only last so long. The opportunity for NFTs that connect communities and create real utility is so massive. However, as with anything, they are no silver bullet. What makes NFTs a suitable tool for brands, businesses, and creators?
Working with and getting to know our customers is one of the best parts of my job. And it's been really fun to work with the team at Charlie Hewitt Studio, who are releasing their first collection of NFTs later this month. Art is nothing new to the world of NFTs. But what is different about this project versus the JPEGs seen in the early days of NFTs is the motivation behind it.
The conversation around NFTs continues to evolve. These novel assets first made their mark on the world in the form of fun, colorful (and, let's be honest, sometimes kinda ugly) speculative digital pieces of art. But fads fade and bubbles burst. Lately, the focus has been on giving utility to NFTs. Speculation is not a long-term play, but functionality is. So what does that utility look like? At Chainstarters, we're helping brands easily deploy their NFT collections and shaping the future around the next generation of customer engagement.
Finding the best solutions is critical when building software. Adding to a tech stack can either make life much easier or infinitely more difficult. (Guess which one we prefer?) Chainstarters wants to take web3 mainstream, starting with its easy-to-use NFT solutions. So when we were building our platform, we wanted to incorporate tech that would allow our product to perform and provide users with a great experience. And that's why we chose to partner with Alchemy.
Welp, it's time to address the elephant in the room.
You probably know that 2022 has seen a reckoning in markets across the board. Almost no one has been spared. And even if you don't keep a close eye on the news, you are likely feeling the pain at the pump or any time you go to purchase something. Inflation hit a 40-year high in March, and average gas prices hit a new milestone of $5 per gallon in the U.S. Companies like Coinbase – once the heavyweight of the new tech era – are now incurring massive layoffs. In short, it's not a pretty picture.
The hospitality industry took a huge hit during the pandemic. Traveling was not an option for most; and for those that had to, it was scary for quite some time. But the industry is coming back in a big way. It's officially the summer travel season, and this is the first time since 2019 that most of us feel safe to get out of town. Memorial Day numbers reflected that, as more than 39 million people got away for the long weekend.
The hotel experience has been forever altered, and now is the right time for hotels, resorts and rentals to make use of NFTs to engage their guests and encourage more business. But before we get into the details, let's take a step back. Why should the hospitality industry care about NFTs? What do JPEGs have to do with hotels and travel? Remember, NFT 2.0 is about utility and engagement. They are the newest marketing tool; it just so happens that they use technology that currently feels a little complicated. (Once upon a time, we all felt that way about email, too. And now we cannot live without it!)
Sports fans are passionate. And without them, sports would not be the thriving, exciting industry that it is. Teams thrive on the energy of the people cheering – and sometimes jeering – them on. If you spot someone wearing a jersey of your favorite team, there is an unspoken bond. See a stranger wearing a baseball cap from a rival? You might wish you could say a few choice words to them.
The sports industry is undoubtedly a valuable one, estimated to be worth in excess of $80 billion this year in North America alone. And we’ve said this before, but we’ve come a long way from the pandemic. People want to engage with the real world again. And that means heading out to games in person, eating hot dogs in the stands, cheering from the sidelines, and being around other excited spectators.
Chainstarters sees a big future for NFTs and how they can be leveraged by brands. One of the biggest areas of opportunity for “NFT 2.0” is in the retail space – especially for brands that sell high-end luxury items.
Imagine going into a store, buying a new handbag and minting an NFT that is tied to the physical item you just purchased – right then and there. That NFT serves as proof of authenticity for the item and is something you can show to your friends. If the brand has a presence in the metaverse, it may also grant access and unlock special offers within.
