Today, non-fungible tokens (NFTs) have been a hot trend for various reasons. But, what are NFTs? These digital tokens provide proof of ownership and authenticity to assets (physical/digital) that they back. While these virtual tokens have earned a name for themselves by building a market of billions of dollars in a quarter (Q3, 2021), it is important to know that all the success should be attributed to NFT in E-Commerce. The domain has been growing briskly and promises to provide much more in the coming years. This blog elaborates on the role of NFT in E-Commerce development in the next decade.
How Does NFT in E-Commerce Bind?
As far as the current trends and statistics are concerned, NFT in E-commerce binds well with each other as these tokens have just opened another path for online commerce to evolve. No one in the 2010s would have predicted that they could buy and own digital artworks without fearing concerns regarding counterfeited assets. Now, along with cryptocurrencies, non-fungible tokens have become vital elements for a Web3 enthusiast to thrive in the digital world. Many use cases of NFTs in E-commerce development have been applied currently.
Current Use Cases
☀ NFTs in E-commerce are visibly used for selling collectible items that hold emotional value for their holders. They are also beneficial as they raise brand awareness and relationship levels among followers. Collectible NFTs typically resemble olden-day sports trading cards, which can be available in almost every niche.
☀ When we speak of NFTs, metaverses come to our minds. These digital tokens can serve as virtual copies of real-world items in the virtual world. NFTs can be used in conjunction with the physical product, and they have been successfully implemented in E-commerce by brands specializing in apparel and jewelry.
☀ NFT in E-commerce development can also contribute via customer loyalty programs with added perks. Customer data can be moved to the distributed blockchain ledger, which saves time and costs incurred for companies in maintaining records. Users can also benefit from NFT loyalties by using their points interchangeably at various places.
☀ Physical asset NFTs are perhaps the most attractive application of these tokens. An NFT-based blockchain record can support any real-world item, which can help prove ownership and property transactions. Also, there is no chance for problems regarding ownership of items as every transaction gets recorded on the publicly-verifiable blockchain.
☀ Additionally, NFT in E-commerce can be useful for businesses to pre-launch physical products without actually selling them. NFTs can be provided as exclusive tokens that offer early access that could generate buzz among buyers. It is even possible for ventures to mint and sells NFTs from their own web stores.
☀ Although NFTs are digital, people can admire them by viewing them on specialized screens set into clothing and wearables. This enables NFT holders to flaunt their new possessions without having to take out a device, and for brands, this can serve as a passive promotional tactic without additional expenses.
☀ Redeemable NFTs have been a use case that is utilized by most brands, particularly those selling unique and rare products such as antique collectibles and alcoholic beverages. NFTs can be redeemed at the brand’s store to collect the physical product. These exclusive tokens can also be sold secondarily before redeeming.
Where Does the NFT Future Lead To?
✅ In the future, physical products can be supplemented with digital experiences, proving vital for brands to survive in the Web3 era. Unique customer experiences can be provided with NFTs for products that can be auctioned, even though it is possible to avail them normally without perks.
✅ NFT in E-Commerce can shape the virtual world by enabling people to buy virtual versions of real estate, vehicles, and apparel. Through phygitalizing aspects, products can be purchased simultaneously in both worlds. While physical versions can be used in the real world, NFTs can be used in metaverses.
✅ Non-fungible tokens can also serve as virtual ownership certificates for physical items. Physical asset NFTs can benefit both owners and consumers as history, authenticity, and other updates can be digitally verified on the blockchain ledger. These are known as trustless environments on which Web3 technology thrives.
Therefore, we can say that NFT in E-Commerce development can grow big soon as more people are gradually adopting these tokens into their lives. If you are a startup enthusiast looking to make a mark in the Web3 world, a venture based on NFT in E-Commerce can be the perfect solution. For technical assistance, consider approaching an experienced Web3 application development firm that works with a customer-centric policy.