You’ve probably heard of Bored Apes and CryptoPunks and know them to be weird – and sometimes ugly – images that have been trading for a lot of money. These JPEGs are not just digital pictures, but NFTs, or non-fungible tokens. NFTs are just one of the many assets in this new world of web3 that leverage blockchain technology.
To put it simply, blockchain is digital information on a public network. The unique nature of an NFT is that it has verified credentials associated with its owner, which is why a CryptoPunk can sell for millions of dollars even though someone else can simply copy and paste the image. It’s the difference between buying an original Van Gogh versus a print of one of his masterpieces.
But NFTs as JPEGs that sell for a lot of money are what we refer to as “NFT 1.0.” It’s an entry-level use of blockchain, and even though it has generated wealth for early adopters – and headlines – it’s perhaps the least productive use of blockchain.
New NFT use cases are emerging, and they have already demonstrated their capacity to serve businesses. We call this “NFT 2.0:” NFTs as digital assets that can yield measurable, positive outcomes – think customer acquisition, increased engagement and loyalty, ticketing, or exclusive access to goods and experiences. Rarity plus authenticity equals value. NFTs will unlock completely new revenue streams for the businesses and brands that maximize the opportunity to use them in practical ways.
Leading brands are already experimenting and paving the way. Nike bought a whole NFT design studio to create their NFT platform. Lamborghini is auctioning the last model ever produced of their Aventador Ultimae Coupé along with an NFT. Why? So the lucky buyer can flaunt their latest trophy in the real world and in the metaverse. Snoop Dogg is even getting into the game and monetizing one of his favorite pastimes – smoking weed.
There was a time when email was a novelty. You may or may not remember how cool it was when Google rolled out an email service and you needed an invite to get a Gmail account. Now, Gmail is standard and having an email address is basically a requirement of modern-day life. Furthermore, many of us have more than one email account to separate work from our personal lives.
Similarly, we envision a future where everyone has a digital wallet; and probably more than one! These wallets will contain NFTs that reflect your purchases, experiences, and interests. Right now, if you want to know what someone is like or what values they hold, you go to their social media accounts. In a few years’ time, you’re also going to look at their wallet.
Took a trip to Brazil? Your boarding passes will be in there. Hold season tickets for your favorite sports team? That will be in there, too. And your related NFT will get you special access and discounts at stadiums. Do you love Billie Eilish or Jon Batiste? You might have a limited VIP Fan Club NFT that you could resell to another big fan who’s willing to pay for all of the benefits it unlocks.
All of this technology is still relatively new and the hurdle to adoption is that anyone who wants to make use of it does not quite know where to begin. There is a lack of expertise and talent in the nascent realm of web3, and the path to success is still being created.
Leveraging NFTs for your brand starts with a hunger to learn more and a web3 partner that provides simple, yet effective ways to launch your NFT strategy. A no-code platform that enables you to build your NFT storefront may be the head start your brand needs to adopt NFTs early, giving you a competitive advantage.
Ready to build your brand’s NFT marketplace? Contact us today.