Digital assets have grown significantly, but non-fungible tokens, also known as NFTs, have taken the online world by becoming the central theme for many investors.
But, what are NFTs?
NFTs are a unique and unrepeatable digital asset worldwide. It uses the same technology used for blockchain to generate a unique and private unit of data that identifies the digital asset.
Its function is based on tokenization, which uses blockchain to identify a digital asset through a series of metadata to determine its value and guarantee its integrity. By tokenizing a digital asset, you get an original certificate that gives faith in its uniqueness and differentiates it from the rest. Also, it indicates the property rights of the archive.
Since this technology helps companies protect their digital content from theft and copyright, they’ve started implementing tokenization of products in their digital marketing strategy or some specific areas of digital assets.
In content marketing, certifying a video or audio created by a specific brand with NFTs is very simple and helps protect the asset from theft and duplicates. The company can keep the copyright without restricting its free movement through the Internet.
Another valuable use of NFTs for brands is to create limited edition digital objects. This way, the brand can outstand from its competitors, improve the interest in its products and services, increase brand awareness, and increase benefits and income.
Here we have three major benefits of implementing this digital asset in your strategy:
1. It is possible to create NFTs from any digital element such as a JPEG, GIF, 3D animation, virtual reality, or even a tweet. This opens up many opportunities for brand catalogs.
2. NFTs facilitate the direct connection between brand followers and clients. The client can own a small part of the brand, which forges an emotional relationship worth it.
3. NFTs eliminate expenses generated by business activity, same as delivery costs, returns, defective products, or the need to keep warehouses with stock.
NFTs can benefit your business; however, don’t forget that this strategy must go in hand with a well-developed brand.