How does business use NFT today?
How does business use NFT today?
Digital art is far from the only sector that can benefit from NFT. This technology can optimize and reduce the cost of many processes that are important for a business, regardless of its size and direction.
Marketing and Advertising
The most obvious and affordable way to use NFT in business is marketing support. Due to being a hot topic, tokens are used by many brands to draw attention to a project or company as a whole. For example, in the summer of 2021, Coca-Cola introduced an NFT collection called ‘Friendship Chest’ (a box stylized as a soda machine), from which you could pull out unique branded clothes for the Decentraland game. In addition Coca-Cola released a collection of Christmas NFTs at the end of the same year.
Similar advertising campaigns have been launched by Pepsi, McDonald’s, Nike, Adidas, Bacardi, Warner Bros, Louis Vuitton and many other well-known companies. Small and medium businesses also use NFTs to advertise their products and services.
For instance, Ukrainian artist Vasya Kolotusha has created a limited collection in collaboration with Pringles and auctioned it (the price for one easily exceeded two thousand dollars).
Since NFTs provide traceable proof of ownership and authenticity, it’s a great tool for improving loyalty programs. If reward cards are implemented in the NFT format, this will simplify their use and make them more secure. More importantly, though, it will increase sales as customers will no longer lose and forget their loyalty cards. They can simply download a specific token to their mobile wallet and use it during purchases, for example by scanning a QR code.
Moreover, businesses can also create their own NFT collections and do giveaways among the loyalty programs members only, like Taco Bell, Burger King, Clinique, Louis Vuitton, Marriott Bonvoy and other brands have done. For example, Burger King added 6 million packages of ‘Keep It Real Meals’ with NFTs inside; collecting them converts to bonuses.
Burger King Launches ‘Keep It Real Meals’ NFT Campaign With Digital Collectibles Market Sweet.
Increasing the liquidity of goods and services
NFTs are essentially cryptocurrency tokens that are easy to buy and sell on any relevant exchange, and even easier to just transfer to someone. With this simplicity, NFTs can be used to tokenize any physical, digital, and smart asset and use them to transfer ownership of the original asset. With this approach, buying and selling all tokenized assets will be as easy as trading crypto.
For instance, you can create an NFT that is a certificate of ownership of a property. With the traditional approach, selling this property will require a lot of time, money and effort. Whereas selling a property through NFT will take seconds. The same is true with the sale of cars, furniture, copyrights or services — the use of NFT simplifies any trading operations with these assets.
The interior of an apartment in Kyiv (Ukraine) that Michael Arrington, founder of the TechCrunch online publication and Arrington hedge fund, sold with NFT for 36 ETH ($93.4k)
Improvement of Supply Chain Management
The main function of NFT in the supply chain is to authenticate products to verify their quality and origin. For example, if you sell food, it will be important for you and your customers to have a way to check under what conditions these products were stored and to confirm their origin. Thanks to NFT, this will be relatively easy to do thanks to special sensors that will track location (via GPS), temperature, humidity and other parameters, and then record them on the blockchain and attach them to the NFT of the product.
Beyond food, NFT technology can also be used in the supply chains of electrical engineering, fashion and footwear, automobiles, furniture, building materials, medicines, perfumes, tools, equipment, toys, and more. There are many industries where NFT can be a great tool to identify specific products and track their quality and authenticity.
Safe fundraising for any purpose
If your business is in need of additional funds to upgrade production facilities, open a new office or production facility, launch a new product, or for any other purposes, you can use an NFT campaign as a low-cost alternative to a traditional bank loan. Think of it as a simple and secure crowdfunding campaign the terms of which can be written into your token. For example, you can specify that your NFT will give the right to receive dividends or the right to own a part of the business (like shares).
NFT is also a great tool for raising funds for charity and social projects. For example, they have already been used to raise money to help the women of Afghanistan after the US left the country. A similar program could be replicated at town, city, or state level to support local charities.
Coca-Cola donated all the money raised through the release of the Friendship Chest loot box with NFT inside to charity
Licenses, certificates, registrations
Many of us are happy to accept an official-looking paper certificate at face value, whether it’s proof of ownership, a medical prescription, a high school diploma, or a university degree. But, alas, the sale and use of fraudulent qualifications is now very widespread: Every year, “diploma factories” around the world sell 200,000 fake certificates to their “students” (more precisely, their customers).
More than 75% of HR managers have identified falsifications in applicants’ resumes.
The Internet is full of websites offering to buy fraudulent diplomas.
The cost of fake degrees ranges from $500 to $2,500.
In the era of paper documents, the issue of authenticity and security was solved with the help of special paper, unique seals, holograms, signatures with wet ink, microperforations, microtexts and other tricks. But none of them, as well as their combination, will not give a 100% guarantee of the authenticity of the document, since any paper document can be forged. Moreover, none of these security measures can be transferred to the digital world, which makes the situation even worse. NFTs can solve this problem. You just need to issue all certificates, licenses, attestations, diplomas and other important documents not only in paper form, but also in the form of NFTs, and this problem will disappear or will not be so acute. Good examples of NFTs used this way are vaccination passports in the Republic of San Marino and diplomas from the Indian Institute of Technology Kanpur.
Copyright and patenting
When it comes to intellectual property and copyright, having a record of it belonging to you can help a lot in case your rights are infringed. But the very process of patenting and confirming intellectual property rights takes a very long time, and the transfer of these rights to another person or company can take even longer.
All this greatly complicates any transactions with patents, so much so that some contracts for their sale and purchase are delayed for many years. Especially if the patent is obtained in one country, and you need to prove something in another country. Thanks to the NFT, all this bureaucracy can be reduced to a few mouse clicks.
In addition, NFT will also help in the future to maintain the continuity of someone’s identity when moving from one Metaverse to another, as shown in the Meta (formerly Facebook) video presentation, in which Mark Zuckerberg spoke about his plans to create the first real Metaverse.
In the video, Mark Zuckerberg’s avatar kept his appearance and clothes as he moved from the virtual office to the virtual sea — an example of identity continuity
Tickets, membership cards
The sale of tickets for sports, music, information and other events in recent years has suffered from counterfeiting and scalping (resale of tickets by speculators). So, according to polls, every tenth ticket in the US is a fake, and speculators buy up to 40% of tickets for popular events. These are not all the problems of traditional paper tickets, though — they could be 27% cheaper if they were issued only as a digital version, that is, if there was nothing to be printed, delivered, or organized.
The immutable and “unreliable” nature of blockchain technology and NFTs promises to help solve some of these problems. By issuing tickets in the form of NFTs, you can make them immediately linked to a specific person, or you can make it so that an NFT ticket can be sold only once. Alternatively, you can set up a system where the organizers of a concert or other event receive their commission with each new transaction (i.e. resale of tickets.)
This approach can work similarly with membership cards and other documents that give the right to access to some event and / or space (for example, the VIP area in a nightclub or country club).
In the digital space it can be just as important, as the organizers of eSports events can also sell tickets to their tournaments in the form of NFTs.
The insurance market suffers from fraud every day. Ghost claims etc distort the truth and are a common problem for insurers. NFT technology can accurately record claims such as car accidents, disability, or illness, and verify ownership of insured items quickly, securely, cost-effectively, and automatically without playing around the bush.
If you are planning to launch an NFT project or use this technology in your business but don’t know where to start, please contact us.