Talk of NFTs is everywhere, but many still ask, “How can I apply NFTs to my business today?”
In order to answer that question, we’ve compiled five of the top use cases to date for NFTs that we hope will inspire you to consider relevant applications for your business.
- Art NFTs
Prior to NFTs, digital art could easily be copied or stolen on the Internet because it was easy to bypass copyright restrictions. Because each NFT is based on the blockchain, they cannot be copied or stolen, with their authenticity and ownership being verified digitally. So while Internet users will still be able to copy or download a piece of NFT artwork, when it comes to ownership, the digital ledger keeps the assets in the hands of their owners. For instance, the anonymous digital artist Pak created a number of NFTs that each had a different value based on their titles, like “The Expensive” and “The Cheap”. The possibility of having anonymous artists and such ambiguous titles would not have been possible if they were not tied to NFTs.
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Art NFTs can be a source of creativity for brands and businesses, working with artists to create exclusive releases and limited edition collections. Art NFTs can be particularly powerful for generating demand by consumer brands that constantly look for ways to stay relevant in the rapidly evolving world of the Internet.
- Music NFTs
Even prior to NFTs, music royalties were strictly enforced, but still there were major artists that could get away with “plagiarizing” music – like Robin Thicke and Pharrell Williams’ “Blurred Lines” Marvin Gaye controversy. Now with NFTs, music can be accurately tracked and it is possible to issue “limited edition” releases of music. These will be made possible once there are more blockchain-based streaming platforms (like Spotify, but on the blockchain) or blockchain music royalty tracking. More musicians are considering tying their music to NFTs so that they can keep track of the royalties that they should be paid, and this is likely to be one a go-to method for musicians in the future.
Businesses can connect to music NFTs by working with artists to create unique songs or albums that are tied to a NFT. This can help generate hype among potential consumers for the brand, such as by featuring the music in a commercial or online ad. While the space is still developing, brands that connect to the NFT music scene early on are likely to benefit once it goes mainstream.
- Collectible NFTs
Some ask, “How is it possible to have collectibles on the Internet?” The answer is that soon, the metaverse will take over and the virtual world will have as much (if not more) weight than the “real” world when it comes to marketing potential. The NBA has already seen success by using collectible NFTs to generate NFT collectible trading cards called NBA Top Shot as has one of the leading baseball card companies Topps.
Once consumers get their hands on these virtual collectibles, they will have the same, if not more, value than real-world collectibles, making it a very lucrative area for businesses to access especially before the practice becomes commonplace. Consumer goods companies should try to find ways to make limited-edition collections that could become highly valuable collectible NFTs.
- Real-world NFTs
NFTs may be in the virtual world, but they are already seeing real-world applications, and brands should take notice. For instance, it is possible to tie a real estate deed to a NFT or smart contract so that there is no question about who the owner is. Other applications include using NFTs to track ownership of precious assets like jewelry, using NFTs to verify if a diamond is real.
There are a multitude of ways that businesses can connect to real-world NFTs, though the area is still in development. Soon, it may be possible for companies to make their office experiences connected to NFTs, so that only those who are part of “the club” can access them, creating an air of exclusivity around the business.
- Logistics NFTs
Soon businesses will be able to track shipping and other logistics using NFTs and smart contracts. This could really improve the operation of the supply chain and increase accountability between consumers and businesses. It could work wonders in industries like food perishables and unique goods, and has potential to dramatically improve consumer experiences in the ecommerce industry. It’s still early days for these NFTs, but businesses could start looking into how they might accurately track elements of their supply chain to improve their reputation and create a unique offering for their customers.
We hope that you’ll use some of these NFT use cases in your business considerations, and stay tuned for more awesome content on the Web3/metaverse revolution!