NTFs: What you should know about them before 2022
Cryptocurrency, blockchain, NFT… You’ve probably heard or read these words at least once during the week, if not more. What became a trend only engineers and gamers understood a couple of years ago is now becoming a huge deciding factor of our economy today.
But not many people know what NFTs are and, even though there are thousands of articles and videos about blockchain, cryptocurrency, and NTF, the truth is it would take weeks to fully understand them. However, you don’t need to become a coding expert to use NFTs in your business, you just have to be well informed.
In this article, we want to go over the basics so you understand how to use NFTs in your business and take advantage of technology in 2022. Let’s get into it!
What are NFTs?
We know we said you don’t have to know everything, but knowing what NFTs are is crucial to understanding how to use them. We’ll try to explain this in the most simple way possible, so bear with us for a bit.
NFT is an acronym for “non-fungible token” and it refers to a digital item that is unique and cannot be copied. "An NFT can be thought of as a certificate that only exists once. It is unique, immutable, and cannot be interchanged," explains Michael Bouhanna, Sotheby's Co-Head of Digital Art and Contemporary Art Specialist.
And it cannot be copied thanks to blockchain technology because the value of NFTs is linked directly to cryptocurrency.
Put it simply, when someone buys an NFT, the blockchain registers this transaction creating a chain, which cannot be copied or repeated, and it’s stored in a block of data, making the token unique and irreplaceable.
So, if you create an NFT and sell it, you’ll make the profit of that first sale and the next ones to come, meaning if the last person who has it sells the NFT again, you’ll receive a percentage of that sale.
NFTs can be anything, from art to tickets for a specific event, so there are endless opportunities to use them to your advantage.
How can you use NFTs in your business?
Part of the charm of NTFs and the reason why everyone is going crazy over them is that NFTs can generate millions as their worth increases, so they are excellent options for small businesses to earn passive income.
You can set up a digital good and earn money each time someone buys it from the last person who has it, and all you’ll need is a tech-savvy person (if you are not one yourself) and a clear strategy of what you want to do with your NFT.
Here are some of the ways you can take advantage of NTFs for your small business:
Create counterfeit-proof promotional tools:
You can create everything, from coupons to event tickets, and use uncopyable blockchain codes that are safer and more exclusive for your clients.
Establish a customer loyalty program:
Using NFTs to grant access to some special program can build up loyalty and exclusivity around your brand. Imagine someone signs up for this program and every time they visit your website they get rewards in the form of discounts or any other benefit.
If you issue only a few spots and the demand increases, you are in for a goldmine and your community as well.
These are just some ideas of what you can do with NFTs, and the more this technology evolves, the more options you’ll have as a business owner to make income out of it.
We remind you this is not financial advice, and AVA does not encourage anyone to buy or sell NFTs. However, we do believe that we should be informed about the development of this technology that offers great potential for business in 2022 to take advantage of it in the future and achieve our business goals for next year.
