NFTs and cryptocurrency have been the major headline news globally for a couple of years, paving their way into the international economy, social life, and international interest. People’s interest in them is growing daily; some have tried to make fortunes, and others are utilizing this blockchain technology to make extra income. Even though some would discourage investing in them, we cannot deny the efficiency of this new method, which might be the future of our lives.
What are NFTs?
Essentially an NFT is a one-of-a-kind digital file.
It is a technology that can be used to validate the ownership of something, especially digital assets since they enable digital property to be sold. They are built on the blockchain and stay in the decentralized ecosystem.NFTs are mainly focused on art and digital collectibles, but in the future we are going to see a wild variety of uses for them, starting with NFTs & e-commerce.
How NFTs Can Change the Future of the E-commerce Industry?
NFTs can make things verified and efficient.
Since NFTs are based on the Blockchain, it makes them unique, immutable and more important – trackable.
Aligned to the previous point, managing data storage and inventories becomes simpler as NFTs are uniquely identifiable assets.
The transactions that take place to validate an NFT before transferring it to an owner can also be visible on the respective blockchain, as indicated above. This means that you can usually trace the NFT back to its source. This gives everyone, especially buyers, a solid way to confirm the validity of an NFT as well as its previous ownership history.
Based on Blockchain technology, NFTs can indisputably verify the original version of a digital product, which is attributed to a one-of-a-kind token of ownership that has a unique value. So, when people are trading NFTs, what they are really doing is buying and selling their virtual ownership of something. Based on this formula, we might have a clear idea about the future of our world with this type of technology.
How NFTs could contribute to the e-commerce industry?
1- Reducing Customer Lifetime Value
Customer loyalty is the core of every e-commerce brand. Ecommerce brands can bound NFTs with their offerings to attract more customers. These NFTs could unlock rewards and unique benefits. They can also allow buyers to gain early and exclusive access to new merchandise, discounts, offers, features, and new products.
2- Reaching new audiences
Launching an NFT can boost a brand’s image for existing customer base while attracting a whole new generation of audiences as it shows that the brand is on top of the current trends and speak the same language as the existing and new fans, and that could increase effectiveness in reaching targeted audiences.
Crypto currencies ( Digital money)
1- Social tokens
Similar to an NFT, a social token is a digital entry pass that allows fans and collectors access to exclusive content; this permits content creators to issue media directly to fans, giving them a more significant share of the revenue. At the same time, social token holders also gain an appreciating asset that proves their fandom. An example of this would be the $RAC token issued by producer RAC, which gives token holders access to an exclusive Discord server and discounts on merchandise.
2- Social media marketplaces
NFTs can’t be purchased directly through social media, but any celebrity can use Facebook, Twitter, or Instagram to advertise their NFTs to a much larger audience than what’s found on NFT marketplaces. In fact, social media itself can be an NFT; for instance, Twitter founder Jack Dorsey sold his first tweet as an NFT. Inevitably, social media platforms will be able to directly sell NFTs, something Facebook parent company Meta is already testing.
3- Unique items
Clothing designers and artists can issue unique items that come with an NFT, solidifying the authenticity of the items and tying the purchaser to the creator. These items can be marketed and sold on social media as exclusive and distinctive to the retailer, the creator, and the buyer, resulting in a once-in-a-lifetime purchasing opportunity. A company specializing in handmade merchandise can use NFTs to convey a sense of authenticity, uniqueness, and modern thinking to interested consumers.
From strengthening ties with consumers to changing the economic system of the world, there’s no doubt that NFTs and Crypto are directing the path to our new world with more changes yet to come, and they might be the headline in the news for the next few years.