Unless you’re living in a different time and place, it’s difficult to avoid the current cultural zeitgeist that is…NFTs. From our daily news consumption to the advertisements on TV, the three letter acronym surfaces in everyday conversation and media.
At this point, you probably have an idea of what they are, but do you know about the different ways you can benefit from them? Whether you want to eliminate the paper deed to your home or instantly know if an expensive product you’re buying is authentic, in this blog we’ll quickly recap what an NFT is, then break down five ways NFTs can be applied.
What is an NFT in simple terms?
An NFT — non-fungible token — is a digital asset that is stored on a blockchain, a form of digital ledger, that can be traded or sold. In some cases an NFT represents a real-world item like music, art, or videos. These tokens are bought and sold online, typically with cryptocurrency like Etherium.
Now that we know what an NFT is, we can talk about five popular use-cases for them.
1. NFTs Connect People to Art
From Crypto Punks to Bored Apes, you’ve probably seen caricatures of these illustrations all over. These particular pieces fall under the PFP (profile picture) category. They typically come in the thousands, and are randomly generated. It’s common for a portion of what’s created to have rarer traits, which prompts the value to be higher
In other instances, NFTs in the art world can allow artists to get paid directly for their work. Having a digital component to your art permits a one-on-one transaction on the blockchain that cuts out any third parties. Critically, it also allows the creator to make money every single time the asset changes hands. Imagine if Picasso or his descendants could make a small cut every time a painting passed from owner to owner. NFT’s present an opportunity not only for artists to get paid directly for their work, but also to get paid in the future for their work. Every artist should be thinking about how to use NFT’s to change how they interact with their patrons, fans, and customers.
How can artists promote their NFTs?
While NFTs live in the digital world, it’s common to promote them in the real world. Many artists are using custom QR codes to send users in the offline world (you know, like walking on the street), to a digital landing page where you can acquire an NFT. With tools like Flowpage, the artist can also showcase the NFT’s they own seamlessly.
2. NFTs Build Relationships with Fans
NFTs are becoming more popular in the music industry. Many musicians are using them as a way to build loyalty programs, connect with fans, and offer something exclusive for their biggest supporters .
Because so much of fan interaction with musicians exists in the real-world, it’s common for artists to use QR codes as a way to connect their fans to digital products, tickets, and now — NFTs.
In fact, at a recent Kevin Gates concert, at Red Rocks Amphitheater, the artist gave fans access to 416 NFTs via scanning a Flowcode QR code that was on stage. Within minutes, there were nearly 3,000 scans from the crowd and all NFTs were minted.
Wait, what does “minting” an NFT mean?
Good question! It’s basically taking a digital asset and converting it into a digital file that is stored on the blockchain (aka, your digital wallet).
Okay, back to NFTs for fans — these interactive experiences at concerts are getting more popular by the day. Providing fans with both an offline and online experience is a way not only to build excitement and engagement, but loyalty too.
3. NFTs Ensure the Authenticity of Products
Trying to avoid ever having a fake product? Well, NFTs can help. NFTs can be used to ensure the products you purchase are authentic. It all comes back to the blockchain, which is a digital ledger. Blockchain can permanently store information about a product, including the rarity and authenticity.
In a very short amount of time you’ll be able to know if a product is fair-trade, information about the manufacturing process, and tons of other granular details about something you’re purchasing.
4. NFTs for Real Estate Transactions
Can you believe you still have a paper deed to your house? You’re not alone. Real estate and NFTs can be thought of as fast friends. Whether you want to transfer a land deed or proof of ownership, NFTs can serve as the tool to do so.
Because of the secure and private nature of the blockchain, NFTs in real estate can be used to speed up transactions, build out contracts, or even keep track of property value as time goes on. The options are endless.
5. NFTs for Events
Whether you’re planning how to sell tickets or mapping out live experiences, NFTs hold massive potential for the events industry. Let’s take tickets as one example. By selling tickets as NFTs you’re guaranteeing the authentication of them, and eliminating any chances of fakes. This also mitigates resale fraud.
Another option? Selling them as merch! NFTs can serve as memorabilia from an amazing game or concert experience. Some forward-thinking marketers are taking it a step further, and leveraging NFTs as a way to unlock physical products, allowing NFT owners to claim merchandise from an event.
So, How can NFTs be used?
From selling digital art and real estate transactions to validating products and event planning, the use-cases of NFTs goes far and wide. As we progress into the era of Web3, we’ll only see NFTs being used more and more across countless industries.
When bringing people from the real world to your digital universe, effortless connection is key. Remember that QR codes can be a quick and seamless tool to bridge the gap from the offline to online.