In a Nutshell – What is an NFT
Let’s start with the absolute basics. NFT stands for “nonfungible token.” In other words, an NFT is a non-interchangeable digital asset.
NFTs are powered by Blockchain technology and it’s this tech that helps keep perfect records of who owns what.
A superb analogy for this is one I read on Forbes. It explains that if someone claimed to own an original work of art by Picasso, for example, an inspector would have to come out and verify this manually in person to check that really is the authentic original. Blockchain tech takes care od this authentication, so it’s easy to verify who the original owner of any single NFT is.
In the USA, just over 12% of adults either have done or plan to trade NFTs.
But how can NFTs be used by business? Let’s take a look.
1. Ticket Sales
With Blockchain technology facilitating easy authentication of the owner of any NFT, it’s arguably more secure than many other more common methods for ticket sales.
And it’s not just theatres and festivals that could benefit from the use of NFTs to sell tickets. Anything from business conferences to small restaurant private parties would be suitable use cases.
2. Loyalty Programmes
We all know that rewarding customer loyalty can lead to improved customer retention. And there are a whole host of different reward schemes that businesses of all sizes implement. But we were particularly interested in seeing how Burger King applied NFTs to theirs. The Royal Perks programme allows customers in stores to scan a QR code on their meal packaging and collect NFT game pieces.
Essentially, customers have three pieces to collect and once they collect the three, they’ll automatically receive a 4th. That 4th could be a digital collectible NFT, or it could be free Whoppers for a year or even merchandise.
But this is just one example of a company using NFTs to power its loyalty program, with Starbucks adopting something similar.
3. Fundraising
Charities such as Unicef have used NFTs to raise funds. But equally, other businesses have used them as a means of almost carrying out Kickstarter-esque funding.
Of course, there are obvious routes too like selling or giving away digital merchandise or art work and creating PR centric NFT led campaigns too.
But with the statistics showing nothing but growth for this already astronomical market, the only real limitation to how you use NFTs within your business is your imagination.
