Laddering the Ecommerce through NFT
There is something new and exciting happening in the digital world. You may have heard about the famous meme Nyan Cat selling for nearly sixty thousand USD or Jack Dorsey’s first tweet selling for more than two million USD. Suddenly, people are ready to pay absurd amounts for content existing on the internet. So, what is going on, and what is this sudden trend sweeping the digital landscape?
NFTs and the sale of NFTs are the new trends in the crypto world, and it looks like this trend is here to stay.
The concept of NFTs is initially tricky to understand, but technology has limitless potential in today’s world.
What is an NFT?
NFT stands for Non-fungible Token. It is a piece of data existing on a digital ledger (called a blockchain). The data represents a digital file that can include any tangible or intangible asset. A video file, audio clipping, picture, game skins, lines of code, articles, blogs, exclusive items, etc., can become an NFT.
Many of us may see NFT as a new and challenging to grasp technology. However, NFT technology goes beyond digitization and can be a beneficial asset to many industries. For example, a notable band released their latest album as an NFT; users bought rare digital sneakers that an AI fully designed. The most significant use case for NFT is in the art world. This area provides limitless opportunities for artists to create digital content, sell it online, and create a steady revenue flow for their work. There is even talk of integrating NFT in Ecommerce industry as it can be a beneficial addition.
Though you can create multiple copies of a digital file, the NFT generated from that file is copy-proof. The NFT acts as proof of ownership for the user who buys it. The technology operates differently from Bitcoin or other cryptocurrencies doing the rounds. Firstly, NFT’s can be traded, but users can buy or sell them with other currencies.
The general idea behind the NFT is that they turn any digital asset into a product that users can track and earn revenue.
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Where do you buy and sell NFTs?
Following the creation and widespread adoption of NFTs, there came the need for creating a redeemable NFT. Digital content creators were looking for a way to turn these digital assets into money. This need led to the rise of the NFT marketplace. There are many NFT marketplaces available on the net, and the most notable ones are OpenSea, Rarible, and KnownOrigin. These platforms make it possible for anyone to create an NFT. Here, the user uploads a file, fills in the required details, and the site generates a digital copy of the file. This digital copy is the redeemable NFT user wants, and they can sell it on the NFT marketplace.
In an NFT marketplace, the buyer searches for the NFT they want. The site provides the buyer with the option to buy the asset or bid on it at an online auction house. After completing the transaction, the NFT is added to the buyer’s wallet and the buyer becomes the new owner.
Though NFT is a new technology, it rapidly became a mainstream subject and saw adoption in the art industry. Additionally, there is the possibility of E-commerce adopting NFTs into their processes.
Christie’s- The famous art auction house rose to popularity in the NFT world when it became the first renowned art auction house to sell digitized artwork. Christie’s entered the mainstream after selling Beeple’s Everyday’s: The First 500 Days, an artwork that sold for nearly seventy million USD. The artwork is the most valuable crypto art in history.
Gucci- The brand may not be famous on the blockchain, but they recently released a set of digital-only sneakers on their app. The brand is working with trading platforms and enabling users to trade releases on these approved platforms. Gucci already experimented with a digital try-on, and a digital-only release may be in the works. The brand also released a statement that they are exploring the NFT landscape and have a keen interest in releasing NFTs in the future.
NBA Top Shot- Fans or sports enthusiasts familiar with NBA can collect or trade Top Shot moments on the dedicated online platform. Moments here related to video clips users can buy, sell and trade online. The platform takes significant inspiration from trading cards, and users can purchase moments in packs or limited releases. Limited release moments have varying rarity levels, and users can trade them on the marketplace with other users. The site encourages users to collect Moments of their favorite players or teams and display them for other users to see.
Ecommerce and NFTs
There are several potential use cases of NFT in Ecommerce industry. Currently, the sector suffers from return fraud, and users find it arduous to prove ownership of a purchased item. If the user bought a product with another user’s details, they cannot produce a receipt for the item or prove they bought it. Typically, the process for ownership verification is long and laborious.
Ecommerce adopting NFTs could solve these problems and others. You could use an NFT to represent a physical item, and the legal owner can prove that the article belongs to them. Consider that NFTs are unique and stored on a decentralized ledger. This nature makes it easy for anyone to verify the NFT’s owner.
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NFTs powering the future of Ecommerce
Ecommerce platforms operate on a centralized ecosystem and require third-party involvement. These authorities oversee the trade of products and services occurring on the site. Consequently, the commission distribution can skew by relying on these intermediaries. NFTs can remove the need or requirement of these third parties on the platform.
Some owners may miss the feeling of going to a store and physically buying a product on sale. An NFT in Ecommerce industry can alleviate the problem. The platform can provide a digital representation of the product the user purchased. The user waits for a few days and receives the physical product. This approach can bring satisfaction and enjoyment to the customer, prompting them to keep using the platform.
Every day, we learn more about NFTs and the potential benefits they can bring to various industries. Presently, they have several uses in the art world, and we could see Ecommerce adopting NFTs in the future. It certainly looks like the industry is moving in this direction as digital brand Shopify added a new feature to their online store. The site now allows users to sell NFTs on the marketplace.