Most people quickly tune out when they hear terms like distributed ledger technology and non-fungible coins. These words may sound like industry speak, but they herald the start of a new age in eCommerce and retail.
The metaverse will be used by future billionaires to conduct NFT transactions. Blockchain and other emerging technologies are building the foundation for a digital world that will completely transform all business paradigms.
This blog discusses the metaverse, how NFTs will be employed there, and how this new technology is affecting both eCommerce and major companies.
An NFT is What?
A unique, digitally scarce item that can be transferred from one person to another is referred to as a non-fungible token (NFT).
The existence of these tokens on the blockchain means that a dispersed network of computers holds records of NFT purchases.
Every time a transaction occurs, the network’s nodes (computers) must all approve it, much like with cryptocurrencies. The transaction creates a block that is added to the chain once it has been approved. As a result, no transaction on the blockchain can be changed or nullified, and there is no centralized authority controlling it.
The most well-known use of this technology is for cryptocurrencies like Bitcoin. These digital currencies all have an identical value for each token; one Bitcoin is equivalent to all other Bitcoins.
Blockchain technology is employed in the case of NFTs to demonstrate the originality and digital ownership of virtual goods. This means that no two NFTs are alike and are not comparable to one another.
NFTs are frequently digital works, but they can also be digital goods, such as skins or concert tickets, or they can even be used as a means of financing a company.
Typically, bitcoin is used for both buying and selling NFTs.
The metaverse is what? Is it identical to Web3?
A shared, persistent, almost endless digital space is known as the metaverse. It is a universe where all virtual worlds coexist in a single area under the control of their users.
Web3, even though the metaverse is a component of it, particularly refers to the internet’s future. It’s a concept for a brand-new World Wide Web built on blockchain technology. It integrates ideas like decentralization and token-based economics rather than depending on huge banks or big businesses to run the internet.
eCommerce and the metaverse
The future of brand recognition and eCommerce is NFTs. Recent years have witnessed the emergence and growth of a whole ecosystem of NFT-based startups, the addition of support for NFTs by companies like Shopify, and significant investments made by major companies like Forever21 in building their own digital places in the metaverse.
In March 2022, Forever21 officially launched its online shop in Decentraland’s Fashion District. It includes avatars of the Forever21 staff members, background music, and decor, as well as anything else you’d expect to see in a physical place. The online shop was developed in collaboration with the Tokens.com Corporation, a publicly traded corporation that only specializes in web3 assets and enterprises.
A number of Forever21’s NFTs, digital clothes for its customers’ avatars based on goods found at the physical retail location, were released at the exact time of the store’s opening.
This decision has benefited the brand in two ways. First of all, it has introduced Forever21 to a fresh group of young people, giving the once-dying brand a revitalized sense of confidence. Second, the corporation now has a new source of income thanks to the investment in virtual property and NFTs.
Any significant brand can employ this idea again and again, and many have, including the renowned fashion business Gucci. They can increase brand recognition in a novel way with a new audience and open up fresh commercial options by developing an NFT collection and online commerce.
Decentraland’s Fashion District has a limiting quantity of room, despite the illusion that the virtual world is infinite. It’s crucial to invest early before space runs out and land prices soar, much like in the real world.
Big brand NFT collections
Other major companies have adopted a different strategy, concentrating primarily on the introduction of their own NFT lines. The advantages are the same as those listed above but without significant real estate investment. Additionally, this limited edition NFT collection fosters a feeling of exclusivity and presents more chances for cooperation.
Adidas is a fantastic illustration of a company that utilized NFTs and strategic partnerships to raise brand recognition. In December 2021, the business released an NFT collection that customers could buy on Opensea. These NFTs served as a form of membership to the private Adidas metaverse rather than merely being digital goods.
These NFTs provide holders unique access to the beginning of any digital drop, which also entitles them to a physical item. Hoodies, sweatpants, and accessories were created as actual products in association with their business partners, Bored Ape Yacht Club, Punks Comics, and GMoney.
The brand was able to capitalize on the hype created by these online powerhouses to attract new clients and sell out its NFTs in a matter of minutes, generating over $23 million in revenue.
Start your web3 adventure now.
It’s time for you to participate as the world transitions to a digital age. It’s time to get started whether you’re interested in virtual properties, NFTs, or taking bitcoin as a form of payment for your online store. It’s time to adapt to how the internet is changing.
NFTs are one of the simplest methods to get started if you’ve been doing any study on how to grow your business in the blockchain realm. They are simple to produce and market. Compared to an online storefront, they don’t demand as much investment. Additionally, they can assist you in increasing brand exposure through interactions with fans and followers as well as through partnerships with other brands or artists. By developing a marketplace run on NFT where users can buy and sell their own works, you could even build a full community around your art!
Utilizing Shopify to market NFTs
Shopify started enabling merchants to sell NFTs on their shops in July 2021, offering them up to an even larger customer base and enabling users to mint NFTs without cryptocurrency. Apply to the NFT beta program if you’re in the US to get going. Shopify intends to eventually expand the program internationally.
Currently, Shopify utilizes the following blockchain technologies:
Even though Shopify does not yet come with a built-in NFT minting feature, it does have a number of third-party apps that do.
Even better, by using Shopify to sell your NFTs, you can benefit from the extensive library of apps available to promote your digital goods.
The Hundreds, a streetwear company with headquarters in LA (and a Shopify Plus merchant), developed Adam Bomb Squad, one of the most popular NFT projects. They have earned more than $70 million from just Opensea secondary sales since inception.
They were one of the first clothes manufacturers to successfully merge NFTs and fashion, and ever since, many other apparel brands have begun to do the same.
Work with Web3 specialists.
Although simple, starting your own NFT collection is challenging. Finding an artist who can create something special for the artwork, working with a smart contract developer who can place your digital art on the blockchain, and having a well-thought-out marketing strategy are all necessary. Finally, you need to sell out your collection. Web3 shopping website development is the future.
There is no denying that the retail environment will shift. This cutting-edge technology may have an impact on your bottom line. Why persist, then? Large companies like Nike and Adidas are already preparing to switch to NFTs. It won’t be long until others do the same if they’re beginning to adopt NFTs.
NFTs are going to be a revolutionary new frontier in the future of internet branding and the advertising landscape, whether it’s for your growing eCommerce enterprise or just for branding and product awareness.
You may take advantage of the NFT revolution with the right strategy and preparation without having to fundamentally alter your marketing plan.
Future applications of NFT technology for enterprises are virtually endless.
It is indeed time for brands to introduce their first NFT collection if they want to gain an advantage over their rivals and attract new clients before they are even aware of your brand’s existence.