Why Are Non-Fungible Tokens Important for Brands?

Non-fungible tokens have taken the digital world by storm. Within the first three months of 2021, the combined market cap of major NFT projects has grown by over 1,785%. Everyone seems to be in a rush to create Non-Fungible tokens and utilize NFTs as a medium to promote their products and engage their audience. In fact, brands like Taco Bell, Pizza Hut, Pringles, Nike and others have all ventured in this space.

To create an NFT, brands need access to the following:

NFT Minting Platform

Minting is a process of creating an NFT on a blockchain. It is similar to publishing a piece of art like an audio file, video file, or digital art.

Ethereum and Binance Smart Chain are some popular blockchains on which various NFT minting platforms are built. An NFT Token Development Services company can help creators identify the right platform for their art form.

In the process of creating an NFT, the platform will ask you to select between a JPG, PNG, MP3, or MP4.

Different NFT minting platforms support different types of files and file sizes.

NFT minting platforms can be custodial or non-custodial which means they might or might not hold creators’ funds or NFTs in a centralized server.

Once an NFT is minted no changes can be made to it.

If something went wrong, a creator must burn the NFT and then mint a fresh NFT.

Minting an NFT charges fees to the creator so one must be careful while creating one.

This phase determines the cost associated with minting a NFT and a Non-Fungible Token Development Services company can help you pick the right one.

NFT supporting Digital Wallets

An NFT Token Development Company can help design to which wallet address will the proceeds go.

Before creators starts minting an NFT, they need to connect a digital wallet, like MetaMask with the NFT minting platform.

This wallet will hold the funds used to pay the minting fees and will hold the NFT too.

Once the file is uploaded to the minting platform, the creator’s wallet will ask for signing the transaction.

This signature connects the minted NFT to the unique digital wallet address.

It helps the collectors to identify that the NFT is actually created by a particular creator.

Many minting platforms also allow creators to earn loyalty for every sale of their NFT.

How can brands leverage NFTs?

It might take some time for the brands to see the value of embracing a disruptive way of marketing using NFTs.

Testing the brand strength
Taco Bell delivered 25 taco-themed images and GIFs in the market and within 30 minutes all the tokens were sold. The proceedings of the sale went to the Live Más Scholarship.

It was a pilot run by Taco Bell and the results clearly showcased the brand strength of Taco Bell.

Creating branded NFTs
Nike was one of the pioneers in the NFT space. They tried their hands at NFT in 2020 when they patented shoes called CryptoKicks. The users could design a unique pair of shoes that will be actually an NFT. Nike would then recreate these shoes in the real world. However, the designer of the shoes will always own the NFT he designed.

Digital Media Monetization Model
Currently, most digital content assets are monetized via Twitter, Facebook or any other community platform. These platforms act as an intermediary and take the lion’s share out of the actual value of digital media. As a result, the actual creator does not get much. NFTs can change this forever.

The use of NFTs will ensure that the creators of digital media content will own the copyright to their work on blockchain. As the ledger is immutable, no one can claim ownership of a digital media item unless the creator sells it. Even after selling the NFT, the creator will keep receiving loyalty for every sale of that particular NFT.

To wrap

In 2017, NFT was just a budding concept and very few technically adept people knew about it. Things are changing rapidly now. Today someone who is not tech savvy can create Non-Fungible Tokens and sell them in the marketplace. However, with so many NFT minting platforms and marketplaces, the NFT creators might end up making not so suitable choices. At Antier Solutions we bring in years of blockchain expertise to NFT enthusiasts. Our experts are just a call away.