NFTs, or Non-Fungible Tokens, may be in the news mainly for the high prices some people pay for collectible digital art work, but they can be used for much more than selling pictures of bored apes.
Basically, an NFT is an unalterable record of ownership represented by data stored on the blockchain. The record can't be faked or destroyed, but it can sold. NFTs can represent physical assets as well as digital ones.
Smart contracts can be built into the NFT. A contract can stipulate that the originator or a selected charity gets a percentage of any sales, for example. If someone sells your NFT at a later date, the original stipulations can't be changed - the originator or charity will still get the percentage of the sale.
How Can Your Business Use NFTs?
Owning a collectible NFT can be a great incentive for signing up for a newsletter. Contests or giveaways with NFTs can be used to drum up brand recognition.
Proof of Ownership
An NFT could be packaged with large ticket or luxury items. If the original buyer wants to sell at a later date, the NFT would reassure the new buyer that the item was authentic.
Large real estate projects or other assets that have multiple owners could use NFTs for proof of ownership of a certain percentage. The asset is divided into shares that can be sold to investors, represented by digital tokens that exist in the blockchain.
Loyalty and Membership
NFTs could be used to build a community. Blockchain-based coupons, promos, and access codes could be created which are easily trackable and can’t be counterfeited. Your company could use NFTs to offer member-exclusive deals to your community.
More than ever, many consumers are concerned with buying from manufacturers or retailers that reflect their own political or moral choices. Supporting charities that appeal to your potential customers is a great way to demonstrate your commitment to their causes. NFTs could be sold for fundraising, with the earmarked percentage donated to the charity permanently baked into the sale no matter how often the NFT is resold.
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