5 Industries that can take maximum advantage of NFTs
The public interest in the immersive and latest digital modes of living is increasing and they are investing in the digital assets to prepare themselves for the metaverse future. The pandemic after the COVID had a great contribution in pushing the world further digital and the remote works, isolations and the growing digital nomad class amplified the necessity of utilizing the online world. Thanks to the 3D world like Fortnight, NFTs Facebook Horizon, Decentral and, Sandbox, and other digital innovations like the Crypto economy have become a daily routine for all kinds of people mainly the teenagers known as Gen-Z.
The business sector especially the investors has broadly accepted the virtual economy. The value of Bitcoin has been fluctuating and a truly decentralized economy has been developing around NFTs and cryptocurrencies. The public has been investing a ridiculous amount of money in digital lands, digital lands, art, and wearables. NFTs had been ridiculed initially but over time, they have become an integral part of this new digital reality.
The proponents of NFT and Crypto are now dealing with questions that how to sustain and create real value for the digital assets they own. How will they be used and who will use them for what purpose and where? NFTs will mainly be used as a kind of economic exchange within the metaverse but the myriad of metaverses are emerging and which will survive? The real-world utility is also questionable.
NFTs as The Revenue Model for The Metaverse
As far as the definition of NFT is concerned, the Ethereum website defines them as tokens used to represent ownership of any unique items. The NFTs allow us to tokenize stuff like collectibles, art, and even real estate. There can be only a single owner at a specific time and the Ethereum blockchain would secure that ownership in the sense that nobody can modify the ownership record.
The NFT trend has engaged the public greatly as the sales are growing in staggering numbers. According to a report the NFT market has grown in size to $3.0 billion and it is expected to grow further by 2017 to $13.6 billion. The total number of sales recorded on Ronin, Ethereum, and Flow blockchains as of June 15 this year was 20.4 thousand.
A few of the most successful NFT projects so far have been from the Art, Gaming, Avatars, and music industries:
· Bored Ape Yacht Club (BAYC)
· Art Blocks Curated
· Kings of Leon
· Cool Cats
· Mutant Ape Yacht Club
Here are few of the major industries to get a boost from NFTs:
1. Luxury and Consumer Goods
The companies like Stella Artois and Ben & Jerry are CPG, consumer packaged goods, and they are about to launch their NFTs and there are whiskeys available for sale on BlockBar. Moreover, the yacht brands and luxury collectible brands of automobiles have also initiated tokenizing their products. You are also able to design your own car of digital McLaren for Formula one and later tokenize that. It happened in 2019 that an anonymous customer paid USD $110,000 for the NFT related to the first digital car of Formula One. That car was created for the F1 Delta Time game related to blockchain.
There are still many people who consider NFT-craze as a reckless gold rush and the debate related to the utility and value of NFT seems to be getting over for major brands.
2. Event Organizations
The second market of $15.9 Billion for event tickets has become challenging for event fans and promoters worldwide. The sites for second-hand tickets involve fraud, scalpers, unreasonable prices, and all kinds of bad actors. The promoters meanwhile rarely get minute earnings from the ticket sales after their investment and hard work. A few of the fan-first players such as Tixel and Ticket Swap have attempted to resolve the problem related to, strict price control and algorithms for AI fraud detection. The Bad actors still manage to penetrate through every barrier.
The NFT-based ticket platform like TicketFairy has come up with a solution for the second-hand market. The NFT-based tickets can be tracked and validated back to the authentic creator. Moreover, you can use the NFT tickets for metaverse and virtual events along with attendance proof. The event promoters are closely observing as the ticket platforms move towards solving the problems related to the second market.
3. Advertising Industry
Most brands embrace the innovations happening because for the sake of survival it becomes necessary to adapt to the changes. The NFTs are going to help the brands stay ahead in the competition. Among the most famous NFT marketplaces currently is from NBA in the United States. The NBA has acted smartly in terms of marketing and they are selling the old video clips with “NBA Top Shots” as memorabilia of the old trend of collectibles. If you buy the short video clip, you will become the owner of the clip and the ownership becomes available for minting on the block chain. This may sound weird but it is essential to remember that collectors are crazy about collecting. The psyche of a collector works in the hope that there is a buyer who is going to pay more for this in the future. Soon there will be other sports following the trend like Cristiano Ronaldo has also been involved in the NFT space and this is going to be a revolution in the advertising world.
4. Art Industry
The Art industry had been under various custodians who handle important components of the intellectual properties of the artists. Those people include galleries, brokers, labels, and agents. These arbiters decide the distribution and sale of the work by any artist, either a painter or a musician, and they look after the distribution of the earnings.
The NFTs have helped the artists greatly because it eliminates the roles of the middleman and enjoys ownership independently. The artists are free to deal with their fans or buyers directly and they will be able to retain their intellectual property for all art pieces. The artists will have consistent control over their streams of income in the resales form. One of the most expensive NFTs sold was Beeple and other artists like Kings of Leon have also arrived in the NFT space with many others to come.
5. The Fashion Industry
NFTs have also inspired the fashion industry. According to Vogue Business Index, 17 percent of brands have started their brandings with NFTs. One of the famous fashion brand, Dolce & Gabbana, have gained about $6 million for a digital NFT collection. Moreover, Burberry has released one of their NFT collections within a Blanks Block Party game. The NFTs in the fashion industry have the power to tap into communities worldwide while providing the brands with top value-based revenue. This allows the brands to create hype around any product launch and grow more business returns.
The business and crypto experts believe they are still at the beginner stage of adopting NFTs. There are going to be far more exhilarating and enticing NFT-related collaborations in the near future.
The NFTs have started disruptions worldwide across industries as their popularity and value are constantly increasing.
Jawad Junejo is a content specialist having a Master’s degree in English Literature. He writes engaging and insightful marketing and tech-related articles and blogs. When he is not writing, you can find him listening to music, reading poetry, watching football and traveling.