An Introduction to NFTs for Brands

NFTs are non-fungible tokens, which is essentially a term that’s applied to a specific type of digital file where its ownership is documented and stored on a blockchain. Blockchains are incorruptible ledgers that are totally decentralised, so that no single entity has full control over it. Confused? Well, that happens. The best way to illustrate both NFTs and blockchains is to give examples. You can think of a blockchain as being like an unhackable database with version control built right in. It’s the system that underpins cryptocurrencies, but it also has all sorts of other potential applications. For example, it could be used in the healthcare industry to create interoperable healthcare records. NFTs are stored on blockchains, and they basically allow the ownership of digital files to be tracked. Most notably, they’ve found favour in the last eighteen months or so as the mechanism by which digital art is sold. NFT artist Beeple sold one NFT for $69 million. Why Brands Use NFTs Brands have always been keen to be seen as innovators, and so perhaps we shouldn’t be surprised that so many of them are looking to get involved in NFTs. But what exactly are the benefits? Perhaps the biggest and most obvious advantage to branded NFTs is that they can reserve and sell branded assets. They can control supply and demand, cryptographically verify ownership and store transactional data in a publically accessible blockchain. Historically, when brands have created and shared content, they’ve been limited by the platforms that they share it on. This can often mean that unwanted ads are displayed alongside their content. Now, with NFTs, brands can tap into new ways to engage with consumers and to compete with other brands while maintaining a greater level of control over the content they create. For example, clothing brands can offer NFTs that unlock the option of purchasing exclusive merchandise. Brands could also work with creators to provide exclusive access to creative content like music or pieces of artwork. They can even assign a percentage of each sale to charity. And so with all of this in mind, let’s take a closer look at three of the top brands for working with NFTs. Top Three Brands for NFTs 1. Adidas Adidas has always gone out of its way to adopt new trends and technologies, and their adoption of NFTs is no different. The brand has created a range of NFTs called "Into the Metaverse", which essentially allow customers to buy both physical and virtual Adidas clothing. Starting at 0.2 ETH, which works out at around $520, the NFTs allow their owners to use this exclusive clothing if they create an avatar inside Facebook’s metaverse. These innovative NFTs first went on sale just before Christmas 2021, and they’ve already proved to be a success. It’s also interesting because as well as being an exciting use of NFTs, the campaign simultaneously helped to drive desire for their physical products. 2. Budweiser Budweiser’s entry into the NFT marketplace comes via the launch of 11,000 NFTs called the "Budweiser Royalty" collection. As part of this, they’ve partnered with 22 up-and-coming musicians to help to boost their careers, selling NFTs for $499. What’s particularly interesting here is that people can’t choose which musician they support, because the NFTs are randomly generated once people make a purchase. According to Budweiser, of the 11,000 NFTs, there are 400 collectible tokens, 99 rare tokens that allow the owner to attend a Discord-based virtual listening party with the artist, and one ultra-rare token that allows the owner to video call the artist. The cool thing about this campaign is that it combined an innovative NFT campaign with elements of gamification and content marketing. It’s no surprise that it was so successful. 3. Coca-Cola Coca-Cola has gone the Adidas route by creating NFTs as hybrid digital and physical products. How? Well, they’ve created four NFT art pieces that were bundled into a loot box. Launched to coincide with International Friendship Day on July 30th, the campaign was designed to raise money for the Special Olympics. It was a short but sweet campaign, with bidding only lasting for a couple of days, but it was all for a good cause and it made it much more manageable. For Coca-Cola, it’s pretty clear that they’re only dipping their toes into the field of NFTs, rather than creating hundreds or even thousands of them and having to deal with the logistical nightmare that this can create. Still, Coca-Cola is one of the most recognisable brands on the planet and so it’s more than earned its place on our list. It’ll be interesting to see whether they stick with it and release more NFTs in the coming months and years. Zfort Group Can Make NFTs for You Now, you might be interested in following in the footsteps of the brands that we’ve talked about, and the good news is that you don’t need the huge budgets of Adidas or Coca Cola if you want to put NFTs to work for your business. But you do need to find yourself a reliable partner, unless you plan on building out your team and hiring an in-house NFT developer. But that can be cost prohibitive, and so that’s where we come in. At Zfort Group, we have plenty of experience at all kinds of development, including working with NFTs, and we’d love to help you to bring your NFTs to life. Get in touch with us today to find out more! Original source:https://www.zfort.com/blog/An-Introduction-to-NFTs-for-Brands

Hello! I work as a software engineer in Zfort Group Software Development Company. I am interested in all news about information technologies, especially NFT and Blockchain. Once in a while, I write articles and create podcasts for a company blog.