Since blockchain technology came to light, it has been shown to provide various effective ways to enhance business operations. One of those ways is the use of Non-fungible Tokens (NFTs). This is a channel that provides new ways to engage targets and business audiences and generate sales.
Various use cases for businesses in NFT development cut across many industries and niches. Brands can create new income streams away from their main offerings while still maintaining recognition for what they’re traditionally known for. This includes NFT merchandise, games, artwork, and many more.
This has made NFT to constantly attract attention, with research predicting a market growth from $14b in 2021 to $82b by 2026. In addition, an increase in globally recognized brands like Nike, Microsoft, and Coca-Cola in the NFT market has become a driving factor in its acceptance, adoption, and growth.
But how can other ‘normal’ brands benefit from NFTs now and in the coming years? This article looks at ways you can benefit and see if NFTs are something you would want to incorporate in your business.
How to use NFTs in business
The brands that have significantly benefited from NFTs so far include real estate, gaming, music, sports, and fashion. Creating digital assets that are unique to your business can help drive engagement and sales. However, you have to identify proper use cases with the help of NFT development consultants to reap the maximum benefits.
Typically, the working and growth of NFTs rely heavily on the fact that humans are collectors. This enhances the desire for people to want NFTs as they are designed to be unique and scarce. But NFTs also give more control to users than physical assets as they are more secure to store, cannot be duplicated, or used in any other way. Here are the ways your business can benefit:
Create hack-proof promotional material
One of the ways businesses lose resources is when hackers penetrate promotional tools to get promotional codes and receive undeserved discounts from your business. First, this renders your promotion ineffective for failing to reach the people you want both in numbers and genuine interest in your business. Second, it puts your business at risk of future penetration and hacking.
When hackers or unauthorized people get access to your keys, passwords, and logins, they can make their own code through brute force, which can cause a lot of damage to your business, whether big or small. But NFT promotional materials are more secure as they’re one of a kind. Hacking, duplicating, or altering them for their gain is highly unlikely. This means you can buffer your business from losses more successfully.
Whether your promotional tools involve games such as a blockchain game to attract and engage audiences, promotional codes, or other discounts, you can rest assured you are safe from hackers.
Effective supply chain management
This is by far one of the biggest benefits and case use of NFTs in enterprises. Statistics show that in 2020 a total of 4,160 parcels were shipped every second globally. For a long time, effectively tracking products in the supply chain from source to customer has been daunting. But NFTs have changed that with the use of tags and codes that make it easier to:
- Track goods at every stage
- Reduce counterfeits, as any interference within the supply chain, is recorded on the blockchain.
- Collaborate more effectively with chain entities like drivers, warehouses, and shipping companies.
- Ensure freshness of perishable goods through prioritization of shipping and delivery
In addition, an NFT can be developed to provide more information on a product, from how it’s sourced, to manufacturing details and ethics. You can see instantly when there are defective products or anomalies in the supply chain and act before the products reach the market.
Besides, because blockchain data on a particular product can be made public, it boosts transparency as customers, and your targets can check and confirm all information about a product.
Customer loyalty programs
Customer loyalty programs have been in play since the beginning of the business. They are an excellent way to reward customers and keep them loyal to your brand. However, the downside of these loyalty programs is their lack of flexibility in use. But digital loyalty programs in the form of NFTs can change that.
For instance, you can create an NFT digital card that customers can download on their devices and just scan wherever and whenever they shop for your brand. In-store, online, and through partners. Then, the rewards can be other things like push prizes, cryptocurrency, discounts, or blockchain tokens. This is a step up from the redemption reward that is the norm with traditional customer loyalty reward systems.
Better document security
One of the biggest business assets a business owns is documentation. Whether the documents are in paper or soft copies, they are always at risk of loss, duplication, damage, and above all, manipulation. Therefore, you need to have a way to store your sensitive business and customer data better and more securely.
To keep your data more secure, NFTs can come in quite handy. NFTs are made to go beyond the basic functionalities of blockchain with higher encryption to avoid forgery and manipulation. Remember, an NFT is a kind of digital asset, so security is at the top level. Making NFTs out of your sensitive documents will eliminate the risks of data loss through unauthorized exchange or manipulation.
Besides, NFTs can ensure that you store your physical documents in a secure place without having to present them physically each time they are needed. If you are in a business where you need to verify identity and credentials, having your documents in the form of NFTs ensures you carry them without risking your physical documents.
Final Thoughts
While most use cases of NFTs are in the gaming, art, music, and sports industries, the benefits above show that any business can gain from them. If you are unsure how NFTs can fit into your business model, consult with an NFT development services provider for clarity and insights. Otherwise, explore the many benefits of NFTs and identify various use cases and applications for your particular situation and business model.