NFTs are in their essence digital items which exist for several years now, the same thing goes for Bitcoin and blockchain, but for some people is not quite clear how they are worth so much money.Lately, many and many companies joined this challenge and the amount of money they gained is quite large.
Before starting to invest in any business it is very important to know as much as possible about it and to develop a business plan. In this article we will start with the beginning and we will help you understand what NFTs are and how you can use them in your advantage.
NFT stands for non-fungible token and we will explain exactly what this means. Fungible is something that can be trade in exchange to something else, that has a certain value very similar to the object you are about to trade. The fact that your product has “non” in front, clearly suggests that the object is unique, has only one owner and it cannot be trade for anything.
To understand better we will give you a good example: if you purchase a DVD with a certain movie from a store, you get in fact a fungible token as there are many products like yours and everyone who wants can have it. If to say you buy a customized ohandmade object that belonged to a certain person, this is for good a non-fungible token, as this was made by a unique person in his own way.
Non-fungible tokens are created with a blockchain technology and they are unique and can be identified by a certain code and metadata. NFTs definitely represent a great tool in developing a marketing strategy for a company and can be almost any type of file.
There are many aspects that can help a brand in using the NFTs:
• develops an unique brand experience
• increases loyalty and brand awareness
• encourages interaction and community build-up
• creates/refreshes brand’s image and support social causes
• changes the level of interest in your brand
Non-fungible tokens have opened up a entire unused showcasing field for brands. This permits them to discover inventive ways of locks in their devotees, to extend brand awareness but also to form unused sources of income. NFTs are a win-win situation for both brands and customers, empowering the possession of an interesting piece of a brand that isn’t one of its items which they can moreover exchange at a benefit, being unique.
Of course, the issue of environmental impact of NFTs is important, and brands need to consider how to balance trends with their consequences. Given the high interest in tokens, it is expected that more environmentally friendly methods for creating tokens will soon be developed.