Let’s start with the basics. If you don’t yet know about Non-Fungible Tokens, you soon will. They’re generating millions of dollars in revenue for gaming platforms, digital retailers, famous and freelance artists. With the sophistication in technology such as virtual and augmented reality and the renewed push towards a metaverse, NFTs will soon become as common as other goods and services.
NFT = Non-Fungible-Token.
Fungible = able to be replicated or replaced
NFT = a token that can’t be reproduced or replaced; it’s unique
They’re founded on blockchain technology, which is a very secure system of recording and monitoring transactions. Multiple blockchains support NFTs, but the biggest provider by far is Ethereum.
In sum; NFTs are digital ‘tokens’ – anything from visual art to trading cards, music to videos, and apparently now, Tweets. They don’t exist in real life, and they’re not necessarily secret; you don’t have to buy them to see them. So why do people buy them? The reasons vary, including:
- To enhance their experience of online interactivity, for instance, with digital clothing for avatars or yourself
- The pride of owning something of exclusive status
- Foreseeing the long-term of the metaverse, and making an immediate investment in assets, such as real estate, that down the line may skyrocket in value
So how can you capitalize on this boom for your own business?
Create your own NFTs
Here are a few ideas to get started:
- Create a digital version of a physical product that can accompany or be sold separately from the product
- Create limited edition products that are one-of-a-kind
- Create a new line of products from scratch
You can create your digital product file in whichever way you like. Then it’s time to list it.
First, you need to decide which blockchain you want to issue your NFT on. Ethereum is the most popular, but there’s Binance Smart Chain, EOS, Tron and more. Check out the marketplace you’re interested in listing on, as you’ll need to make sure that the blockchain you choose is compatible with the platform.
Next, connect your crypto wallet with the platform; you’ll need one that’s compatible. Most platforms require a crypto balance in order to list your digital creation but check out each marketplace for fees. Opensea for instance doesn’t charge to create, whereas others do; usually a combination of listing and sales fees.
You can then advertise your NFTs on your website or social media pages to get the ball rolling on your new digital offers. Get ahead of the game now, to pave your viability in the future of small business.
One of the other great appeals of the blockchain is its security. It’s peer-authenticated, and each NFT has a unique imprint that’s impossible to breach without leaving a trail. You can use these to mitigate fraud when it comes to limited edition items. Read more here.
Disclaimer: It’s important to note that the environmental impact of the blockchain and NFTs are severe. The energy consumption needed is a growing contributor to climate change. Ethical creation is more crucial than ever. But some providers are voluntarily seeking to offset emissions through waste conversion and other endeavors. Check out this article from Time to learn more.