In the field of business and entrepreneurship, you are not just left awestruck, but most of the time, you are left completely baffled and confused. Every time you think you have understood a new topic in business, something else, more confusing shows up.
It has been a while since NFTs have been the talk of the town, but it is still understandable how most people don’t know about it. So, how did it suddenly erupt into the market and now are selling like fancy antiquities? Is it even worth it? Is it some bubble ready to pop after they fly up to a certain point?
So, let’s start answering the fundamental questions regarding NFT and then move on to understanding 5 helpful NFT use cases for entrepreneurs.
What Is An NFT?
The full form of NFT is a non-fungible token.
In simple terms, non-fungible means something unique and cannot be replaced with something else. NFTs can digitally represent crypto, digital art, game avatars, even real estate. They represent digital and non-digital collectibles.
As we mentioned, NFTs are unique. Let’s take an example, cryptocurrencies and physical money are both “fungible,” meaning they may be purchased or exchanged for each other. They’re also worth the same amount of money—one dollar is always worth another dollar and one Bitcoin is still worth another Bitcoin. The fungibility of cryptocurrency makes it a secure way to execute blockchain transactions.
How Do NFTs Work?
NFTs are usually programmed in the same way as cryptocurrencies like Bitcoin or Ethereum. However, they exist on a blockchain – especially on the Ethereum blockchain. These tokens are like collectibles; the difference? They are digital.
So, if you buy an antique piece of a vase, you get a digital file with the vase. But, you also get exclusive ownership of the item. This has helped businesses and artists all around the world. For example, a painter no longer has to have auctions and physical gatherings to sell their art.
With this method, businesses have been able to cut down hundreds and thousands of dollars, it is easier to do business – more systematic, and it is safer to work this way.
How Does NFT Help Businesses?
NFTs are the new hot takes in the market these days. Why wouldn’t they be? They last just as long as blockchain; it is safer as it can conform to anyone’s authenticity through blockchain, giving you provable ownership of items and so much more.
So, here are 5 ways why and how NFTs are important and can help your business or you as an Entrepreneur:
1. Gives Your Business More Market Playing Field
The digital way is the way to go these days as virtual products are hyped up in the market. However, one of the most critical pieces of knowledge is adaptation as an entrepreneur. With the craze of digital products, businesses and startups are creating NFTs tied with physical products. This gives businesses more leverage in marketing their products virtually; it also helps the companies cover more markets.
For example, if you run a flower business, you can ask your customers to purchase flowers and an NFT version. NFTs don’t cost much to make bit their profits can be a lot. This can help make easy purchases and transactions for your customers and your business by giving you a more comprehensive range and target audiences.
2. Helps Your Business Get The New Aged Marketing
Marketing without any argument is essential to growing a business – it plays an indispensable role in improving business. A good marketing strategy can help you skyrocket your business in no time.
With the changing weather in the marketing industry, the increasing popularity of NFTs and digital creators to mint, create, and sell digital assets has increased the marketplace demand. Today, even NFT marketing agencies can help your business, and your digital creations reach hundreds and thousands of collectors.
3. Gives Your Business Proof Of Authenticity
The market today is elementary to duplicate. Every product you see can be copied and sold off. Adidas becomes Abiabs, Nike becomes Bike, Louis Vuitton becomes Luis Vuitton, and so on. If a customer did not know any better, they would be buying Abibas thinking it is Adidas.
NFTs may help you and your business deal with such counterfeiting of products. NFTs live on the blockchain, making it easy to verify the validity and ownership of any product. When your product is tied with NFT, it becomes a sign of credibility and authenticity. For example, Nike has released CyptoKicks – with every pair of Nike you buy, you also get a digital pair of kicks. This helps the customers pick the original item.
4. Helps Reduce Insurance Fraud
As an entrepreneur, it is vital to understand the whole insurance deal. With good products, there comes a warranty, guarantee, and insurance. Unfortunately, the insurance market is enormous, and with insurance, there also comes the risk of insurance fraud. There can be ghost claims that usually cannot be tracked back into and businesses have to give in.
When a business joins NFTs, enterprise NFT technology can help a company get accurate records. This allows businesses to inspect and understand if any insurance claim is correct or not.
5. Gives A Boost In Supply Chain Management
To keep track of all the flow of goods and services, transforming raw materials into final products is crucial for business. When a company has an NFT attached to its physical product, it becomes easier to track the outcomes. As a result, companies can save capital in terms of man-hours, and it can also be effortless to update the system.
As NFT lives in a blockchain and the information is visible to everyone. Customers can also confirm the details of the products, which only increases the credibility and authenticity of the business.
NFTs are the next big thing – understanding how NFTs work, why they are essential, and how to use them will help you escalate your business and take it to the next level. It will only increase brand loyalty, brand recognition, and improve your overall working mechanism.
NFTs are set to disrupt the market, increase customer satisfaction, build a better supply chain for businesses, and increase brand loyalty. Soon enough, NFTs will play a vital role in leading the digital world to flourish.