If you have investigated the world of tech in the past year or so, then the chances are that you will have seen the term NFT pop up. Of course, it’s one thing knowing that they exist, but another thing completely knowing what they are, and how they can be used from a business perspective. If you are confused by what NFTs are and how you can get involved in them, then you aren’t alone. All will be discussed in more detail below.
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What Is an NFT?
An NFT stands for a non-fungible token. To better understand what one is, you should consider the word fungible. When something is fungible, that means that they are easy to interchange with another item which is almost identical. For instance, if you consider a dollar, then it is very easy to replace this with another dollar. As such, when something is non-fungible then it means that it cannot be replaced. This is most easily seen in the art world, as sure, you can own a copy of the Mona Lisa, but you are unable to own the actual Mona Lisa. The same applies to an NFT online, as they are digitally unique, meaning they are unable to be replicated.
There are many of these one-of-a-kind assets now. People use them to sell and trade for a profit on different websites. For instance, if you head over to sites, such as https://www.okx.com/web3/nft/featured, then you have the perfect place to look at, to see what NFTs are doing well, as well as buy and sell different NFTs. The value of these NFTs can climb given that they remain unique.
What Is It That Makes an NFT Unique?
One of the first things that makes an NFT unique is that they are exclusive. They also have a provenance, which means that they have an official origin and a history behind them and their creation. Finally, as previously mentioned, NFTs can be traded, sold, and resold in the same way that any other commodity can, which means that there is a universal marketplace they exist in, which can add to their value.
How Are Retailers Using NFTs?
When it comes to NFTs and Ecommerce, there are several different ways that retailers are taking advantage of the new popularity of NFTs. Some of these include:
- The Sale of collectors’ items
- Providing digital duplicates within the metaverse
- Loyalty programs for people who purchase NFTs
- It is easier to prove ownership in transactions
- The prelaunch of physical products but digitally (consider record labels selling unique downloads of albums in the same way people used to buy limited edition records)
- Having NFTs be redeemable in the physical world
NFTs have become incredibly popular in recent years and, as such, eCommerce businesses have been capitalizing on this by selling them in several different ways. Thanks to the uniqueness of NFTs, and the marketplace that they exist in, people who work with such eCommerce businesses can end up re-selling the NFT for a profit.
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