Wednesday, September 28, 2022

How would businesses benefit from blockchain and NFT?

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Talk about the most impactful disruptive forces in the latter half of the 21st century and blockchain is sure to take the cake away. The decentralized, trustless, and immutable DLT technology has opened up a sea of possibilities to revolutionize the way businesses operate and transact. Though blockchain is often interchangeably used with cryptocurrency yet these two are not the same. Cryptocurrencies are developed on the blockchain but blockchain uses extend way beyond crypto.

One of the major blockchain use cases that can be a transformative force for businesses in NFT. Read more about what does leverage mean in crypto

The post below offers a brief on how businesses can utilize blockchain technology as well as NFT to scale up and march closer to the web 3.0 future.

To charter in international waters

Blockchain technology, especially crypto, was founded with the aim to democratize the finance scene and make it all-inclusive. In that light, the DLT technology is completely decentralized and is against the involvement of intermediaries or middlemen in transactions. The absence of 3rd parties assures direct peer-to-peer transaction. This decentralized arrangement benefits in two major ways. One, it eliminates the middleman fees that otherwise hike up the total transaction cost in a centralized system. The other benefit is that the decentralized architecture of blockchain makes the process faster than the centralized systems as the transaction is direct and does not have to pass through intermediaries.

Based on the discussion above, it must be stressed that blockchain technology makes international transactions more affordable and faster. This twin advantage provides a fantastic window for businesses to tread into international territories- without losing sleep over the exorbitant price of international transactions. This is especially true for SMBs who are usually unable to touch the global market due to financial constraints.

To create more secured ecosystem

If you are a business that works with an immense amount of confidential data that optimizes security, you can count on blockchain technology. Several blockchain experts stress on the fact that blockchain has been specifically engineered with an eye on optimum possible security. With data theft and breach rocketing to alarming high with every passing year, blockchain assures peace of mind.

So, how can you make the blockchain technology create a secured ecosystem for your business data? Well, the secret lies in the fundamental characteristics of blockchain technology. One, blockchain technology is decentralized that eliminates 3rd parties and eventually risks of data breach by 3rd parties. The decentralized structure also prevents hacking attempts which are otherwise common glitches with centralized systems.

Then, blockchain technology uses advanced cryptographic encryption for every data recorded on its distributed ledger. It means whenever you will enter your business data on blockchain, the data will be layered with cutting-edge encryption for advanced security.

The other factor that will help you to assure cutting-edge security for your data through the blockchain system is the “immutability” feature of the technology. Being immutable, the blockchain ledger does not allow change, alteration, and manipulation of stored data.

The blockchain technology also allows setting access permissions to store data, thereby eliminating risks of unauthorized access to confidential data.

Faster operation through smart contracts

If you are looking forward to making your business operations faster, count on blockchain technology. The DLT technology comes with self-executing codes called “smart contracts” that can automatically process contracts or transactions once certain given conditions are fulfilled.

To bring more transparency

The blockchain technology represents a shared public ledger, thereby ensuring easy transparency across the different people in a single chain. Seamless transparency helps to ensure clarity in communication that rules out miscommunication issues.

How to utilize NFTs for your business?

NFTs stand for “ Non Fungible Token”. It means these are tokens that cannot be exchanged with similar tokens. Each NFT is one-and-only- think of them as limited-edition collectibles. NFTs are developed on blockchain technology and you need cryptocurrency to invest in them. While NFTs have been around 2014-2015 yet they have exploded into the scene since 2022. As per market reports, this blockchain wonder is poised to witness around 33.9% CAGR by 2030.

NFTs are a part of the Web 3.0 and NFT-integration will allow your business to progress closer to the next-gen future lying ahead.

Leverage branding with NFT

Your business can utilize NFT to leverage branding efforts.

You can create digital versions of your popular physical products in NFT formats. For example, a leading sneaker brand has created an NFT avatar of its sneakers. So, every time a customer purchases a physical sneaker, s/he gets the NFT avatars as well. When you will create an NFT avatar of your physical products, you will get another platform to showcase your brand and expand brand exposure.

Besides, technologies like blockchain and NFT are the face of the future. So, when your brand participates in the NFT bandwagon it conveys the message that your brand is open to futuristic technologies.

Powering up consumer connection

The revolutionary blockchain development (NFT) can be used to connect with potential audiences in the virtual place. NFTs offer an excellent opportunity to expand consumer connection digitally. NFT marketplaces are a common sight in Metaverse applications and games. You can put the NFT versions of your product on these Metaverse platforms to capture virtual audiences. Depending on your product niche, target Metaverse games on blockchain where online gamers will need your products (NFT versions) to play the game.

You can also utilize NFT creations to celebrate a milestone achievement of your brand. A soft drink giant recently celebrated its 200th birth anniversary with an NFT-based bubble jacket.

Create exclusivity to drive customer loyalty

One of the major reasons behind the surging value of NFTs is their rarity. Each of the NFT avatars in an NFT collection is exclusive and there is no second copy. Thus, owning NFT creates a sense of  pride – pride of owning an exclusive collectible. You can create a limited-edition NFT version of your products and sell them exclusively to your customers.

The “limited-edition” factor will help them feel “exclusive” and “privileged owners” of the collectibles of their favorite brand. Such ethos will go a long way in acquiring and retaining customer loyalty.

Social cause

Businesses can also use NFTs for empowering social causes.

Businesses worldwide have recently started grasping the immense potential of NFT. Despite myths about the fall of NFTs, these futuristic blockchain products have only shown tremendous growth over time and hold the potential to be a defining force of the coming future.

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