You have probably heard about the sale of the first-ever Tweet recently and might have been puzzled. Someone paid $2.9 million for a line of text! This first Tweet is an example of a non-fungible token (NFT).
Let’s define some terms to understand what’s happening here and why NFTs are big for businesses.
Fungible objects are not unique. They’re exchangeable for other items of similar or identical value. Dollar bills, for example, are fungible. Computer parts, tools, and pencils are all fungible.
Non-fungible objects are unique. A Picasso painting is non-fungible. Picasso isn’t alive anymore and can’t make any more paintings, so the one you buy is the only one that will ever be in existence. You can’t exchange it for anything else with a known equivalency.
What surprises many people is that digital creations can be non-fungible, too. Take the example of that first Tweet. There will never be another “first Tweet.”
Because its code is unique and people saw value in that uniqueness, a buyer was willing to pay millions of dollars to own it. Specifically, the buyer purchased a digital certificate that asserts ownership of something that nobody can duplicate.
What does this mean for your business? How can you use the uniqueness of NFTs to your advantage?
The Benefits of NFTs
People pay for exclusivity and rarity — they always have. Gold and silver, fancy cars, and expensive watches are all rare.
The only difference between these objects and NFTs is that people are beginning to realize digital items can be rare and unique, too.
Here are some ways that you can leverage NFTs:
NFTs Create Unique Experiences
Digital artwork — whether a static image, a gif, a video, or a piece of audio — can be made intentionally limited so that only the person who owns it can use it how they wish.
Most digital creations exist as a series of 1s and 0s that can be replicated and shared infinitely, but restricting this ability to copy a product creates a unique property that must be owned to be enjoyed.
NFTs Encourage Interaction
By creating unique digital items, collectors and buyers can enjoy these creations by forming fandoms around them.
Connoisseurs of digital art can enjoy and show off their prizes in a new and unique way within their community of interest.
NFTs Provide Collectors with Value
NFTs are a way to preserve wealth. And because they’re scarce, this makes them very sought after for collecting.
Buyers of NFTs are able to use NFTs as a store-of-value, and in some cases, see their NFTs grow in value exponentially.
Use Cases of NFTs that Apply to SMBs
NFTs don’t have to be artwork; the ability to have a digital item that nobody can copy allows for many practical uses, such as:
Tickets and Reservations
Having a unique code no one can duplicate can get you into events and locations without wasting paper.
Contests involving collectible tokens are already popular with many major restaurant chains and other retail operations.
NFTs allow you to issue items that customers can collect to win prizes for complete collections or even just for the thrill of trying to find them all.
NFTs can be sold, rented, or leased, just like any tangible object. As such, the creator of the NFT can profit from its sale and resale through royalties.
Examples for Small Businesses
Let’s look at some concrete examples of how you can use NFTs for your business:
NFTs for Secret Access
Let’s say you own a restaurant. To generate interest, you create some NFTs that grant owners access to a secret menu.
These items might be special, difficult-to-procure foods that you can make seem even more special with limited access.
Limited Event Entrance with NFTs
For cool, underground, speakeasy-style events, NFTs give you the perfect option to provide them with an air of exclusivity.
Once the patron has entered, the NFT can be removed from their digital cloud space.
If the item is something you’d like them to continue using or you have a tier system, a customer can keep the NFT for future re-use and continual bragging rights.
NFTs as Artist Revenue
If you’re a writer, a graphic artist, a photographer, a musician, or anyone who can create unique digital content, you can sell your work as NFTs. You can even give them to select clients and then profit from royalties when they’re sold.
And you would be able to do this directly in a 1:1 relationship with your fans. This means more profits as you won’t need to pay a distributor any overhead fees.
NFTs that Supplement Physical Products
If you sell products in the real world, you can offer NFTs as part of the experience, such as digital representations of your products or limited-edition schematics.
NFT purchasers could access forums where they can give ideas and feedback on the products, even if they’ve never held them in real life.
Contact With Pulp to Generate Hype for Your Business with NFTs!
Businesses have more opportunities than ever before to create unique items that catch the interest of consumers.
The benefits are real when you’re able to create digital products with real value that people can’t duplicate.
The digital revolution is here, so take advantage of NFTs now. With Pulp can help you step forward into the future, so contact us today and get started creating and minting your NFTs to the blockchain.