Are you an entrepreneur and still not sure what NFT means and what actual value it can bring to your company? Then you might be missing significant opportunities like profit increasing and becoming a part of the business of the future.
In fact, it’s natural to be confused about completely new concepts that question many traditional foundations. However, the distinguishing features of all great minds are the ability to focus on innovations and be far-sighted, as well as take leading positions long before the changes reach a global scale.
Thus, we suggest you dive deeper into the NFT world and learn about its business prospects without complex terms or excessive information. As a result, no matter what course of company development you decide, this information will still be helpful in the long run. So, let’s start with the definition of NFT and the principles of its work.
What Is NFT Again?
NFT stands for the non-fungible token, meaning that each token (crypto asset) is entirely unique. For example, traditional money or crypto coins are similar to each other — a one-dollar bill is the same as another. But no NFT would be identical to another, so they can’t be replaced by anything. However, NFT is not just cryptocurrency but a certificate of ownership rights on any digital asset built on blockchain technology (which is based on a cryptocurrency like Ethereum).
In turn, blockchain is an incredibly complex data system, where digital information about an asset, its owner, transactional history, and the like is coded in decentralized blocks of chain. In order to keep critical data safe, any block in a chain can’t be edited or deleted but only added. Thus, the system makes NFT a perfect way to get provable ownership rights of an item you are investing in, and don’t be worried about security.
NFT as a Part of Your Business Development
Surprisingly for people far from the NFT topic, this technology has dozens of ways to apply it, improving many areas of our lives. Let’s take a closer look at some industries already working with NFTs.
NFT Art
One of the most hype NFT kinds is artworks, which are digital assets like images, screenshots, and visual/audio files. Usually, this field is an excellent opportunity for independent artists to express their talent and get fair compensation for the work, while collectors buy NFT art for the same purposes as people purchase physical artworks — aesthetics and investments.
In addition, professional companies like 3D-Ace create art for commercial purposes. This way, large-scale businesses and famous brands launch their NFT art collections for fans/community members, opening new income channels. For example, the UFC company sells the most epic fight moments on NFT videos on their marketplace and has an enormous audience of sports fans.
NFT Games
The other name for NFT gaming is play-to-earn, which reflects the main principle of this format — playing games to earn NFTs. It works similar to traditional video gaming since players go on adventures with gaming characters and complete quests depending on the genre.
The key difference, though, is most assets in NFT games are NFT, so characters, clothes, weapons, and props earned during a game can be withdrawn from a personal NFT wallet of a gamer and then sold on a marketplace. A player can also purchase NFT assets in order to affect gaming progress.
NFT Property
The real estate market has always been one of the most discussed among investors, and it still finds ways to bring more profit to its shareholders. Nowadays, NFTs are gaining significant value in this industry, representing physical and virtual property in the digital world. Even though this field isn’t so common yet, it has multiple advantages that are impossible to ignore.
First, purchasing property with an NFT means no bureaucracy and tons of paperwork compared to the traditional process. It literally takes several minutes to complete the deal and get provable ownership rights. Further, NFTs in real estate are a no to cash, and completely secure transactions, which play a significant role in clients’ comfort.
Speaking about the purchases of digital land, it makes perfect sense in terms of long-term investment in a sector that will rock the world quite soon — the metaverse. Individuals and enterprises who become owners of metaverse NFT land can use it as a new monetization platform as well as a digital space for future rent. In other words, when businesses massively migrate to a metaverse and the supply is high, they’ll need to rent a piece of land to accommodate.
NFT Ticketing
The event industry doesn’t stand aside from technological progress, so they use NFT strengths to solve the issue that bothers any related specialist — authenticity. Traditional paper tickets are easy to fake, which causes obvious problems for organizers as well as visitors.
E-tickets should make things better with their QR codes, but sometimes that doesn’t help either. Luckily, NFT tickets are impossible to fake as blockchain doesn’t allow any changes in its system, while any hacking attempt will be recorded and tracked.
NFT in Healthcare
This way of NFT usage might be one of the most surprising and disruptive ones, as it’s hard to imagine what NFTs have in common with healthcare. In fact, an incredibly secure blockchain system can store the patients’ data to work like a unique digital medical card.
In addition, pharmacy manufacturers can encrypt data about medicines in the form of NFT in order to mark them off as authentic and track information about their market availability, etc. And another application of NFT can be for so-called tokenized blood — a system allowing to mark and track donors’ blood on its way to a recipient, and the overall data then can be stored at a digital blood bank as an NFT.
How to Enter NFT Market and Succeed
In case you’re interested in keeping up with the times and ready to become a leader who shapes the market up, there are no more reasons to stay aside. We’ve highlighted the top 3 vital principles that will guarantee you 50% of success on this exciting path. Ready to explore? Let’s jump right into it.
- Conduct deep analysis. Careful preparation is everything for any project. The thing is, it’s not enough to come up with a great idea to conquer the market. It’s essential to learn complete information about the market’s current state as well as competitors, their products, strategies, straights, and downsides. This way, you can build a practical plan that will lead you to all your dream goals.
- Hire proficient specialists. Disruptive technologies could be complicated to work on without any practice. So, developers with deep expertise in NFTs are crucial for having in your team. On the other hand, if you want your project to be done flawlessly but with minimum effort, it’s better to hire a professional NFT art studio with broad experience.
- Pick perfect timing. According to BelCrypto, the NFT market was valued at $100m in 2020. By mid-2022, this had increased by 30x to $3bn, that’s strongly considered dramatic market growth. This means that starting a project in 2022-2023 would be an incredible opportunity to gain a priceless experience with competitors and launch a new, better product by the pick time. However, if you’re an individual who’s going to invest in any NFT field, then it’s better to do this when the market is a bit down.
In conclusion, one more thing is essential to know at the beginning of any NFT project. The world is changing quickly — twenty years ago, we couldn’t imagine paying for goods and services by contactless phone transactions. Thus, NFT is the new level of technological development, so modern tech leaders decide what our life will look like in the following decades.