Wednesday, February 21, 2024

Does your business need NFTs? Here are some benefits and use cases

Here's how your business can explore NFTs with some benefits and their use cases.

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Blockchain and Web3 are too powerful for businesses to not have at least some integration of them into their ecosystem. Web3 and NFTs are dramatically changing the landscape of the internet and how users will interact on it. Avoiding these growing technological advancements could set you back from competitors who adopt this technology early on.

Additionally, NFTs represent a fundamental shift in behavior and expectations online. This drastic change in offerings requires creativity and know-how that can only come from doing. The first entrants into Web3 and NFTs in a business vertical will likely make some mistakes or even suffer some small reputational risks from doing so. They will be ready, however, and battle-tested once most users transition from Web2 to Web3.

The first entrants into Web3 and NFTs in a business vertical will likely make some mistakes or even suffer some small reputational risks from doing so. They will be ready, however, and battle-tested once most users transition from Web2 to Web3

Before a business takes this step, it should carefully consider the specific changes that Web3 is bringing compared to Web2. Web3 refers to a crypto-native internet, whereas Web2 refers to the internet we are all using today. The core tenants of web3 are that it is decentralized, and sites are individually owned/funded, as opposed to web2 where giant companies own the websites and own your data. Web 3 sees individuals connecting a cryptocurrency wallet to a website to interact with it, and in many cases that individual purchasing or funding the site with cryptocurrency from that wallet. Web 2 funding comes primarily from advertising.

The drastic shift in ownership and in monetary involvement of a site’s users represents a fundamental change in structure. Websites, like YouTubewhich posts incredible amounts of content all for free, now are being switched to sites where a user has to own a token to view content. The major benefit of this change is that the user base is willing to own information and pay to interact online.

Virtually every type of business is now or can be, leveraging NFTs to drive new types of engagement with their customers/fans, and new types of revenue. “Web3” technologies such as NFTs and cryptocurrency payments will no doubt be a part of every business’s future, just like having a domain name and website is today.

Virtually every type of business is now or can be, leveraging NFTs to drive new types of engagement with their customers/fans, and new types of revenue.

NFTs represent exciting new opportunities…

  1. Ownership – The number one utility of a non-fungible token (NFT) is the ability to prove ownership of something intangible. The most common use case of this is digital art, but that is certainly not the only use case. You can leverage NFTs to reimagine how ownership is granted, tracked, and verified for anything from equity shares in a company to owning a star in the sky.
  2. Access Gating – Similar lines to ownership, NFTs provide a powerful way to prove that someone should be granted access to something, e.g., access to an online community, or the right to unlock/view a digital file, or even the right to access a real-world event. Token-gating should, and will likely, replace email and password authentication because it offers a more secure way of proving that someone should be granted access,

The possible applications and use cases of NFTs are many, but some include:

  1. Fitness – a high-end fitness club could have a limited number of memberships for sale and the ownership of those memberships could be in the form of an NFT. Once they are sold out, current membership owners could sell their memberships/NFTs on a secondary market, thereby creating a more equitable proposition to membership purchasers, and driving additional revenue for the club through commissions on secondary sales.
  2. Music – bring back ownership to music lovers, just like the good ol’ days when you bought a CD – you owned that CD and could listen to it as many times as you wanted, for free. Why should things be any different now?
  3. Writers – the same concept of music ownership applies to e-books.
  4. Ticketing / IRL Events – leveraging the power of proof of ownership, tickets to events can see a significant improvement in security. By leveraging the blockchain, you can prove that the person attempting to enter an event is in fact the person that should be granted access – the idea of copying or stealing someone’s ticket is no longer possible. Similarly, the ability to sell fake tickets on the secondary market is no longer possible. All tickets are verified on a blockchain.

The future of Web3 is largely undefined and it likely will take some trial and error to enter in a novel way specific to one business v. another. The best bet is not to fear trying something new and in that process, companies will likely find the right format for an NFT to fit well into its business vertical.

About the author:

Grant Powell is the CEO of Curios, a Web3 platform that allows users to mint and sell their own NFTs with ease. Curios has powered more than 8,000 registered NFT marketplaces, businesses, and creators selling over 1 million NFTs to date on their branded platforms.

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