Non-fungible tokens, popularly referred to as NFTs, are unique cryptographic assets acquired and accessed through blockchain technology. To fully understand what an NFT is, it is crucial to first interpret the concept of fungibility.
Fungibility describes an asset that is reproducible or one that can be substituted. Therefore, a non-fungible asset is unique in its very being, meaning no other replica or replacement of that asset exists. That being the case, NFTs, in their essence, are digital assets that are purely original and irreplicable.
Where Can NFTs be Utilized within the Digital Space Involving E-commerce?
Since NFTs allow any product to be preserved in digital form through blockchain technology, they have wide applications in several e-commerce industries. Listed below are e-commerce industries where NFTs can be utilized to promote growth and advancement.
Digital and Traditional Art
NFTs are a gateway for physical artwork to enter the digital market with a much wider audience and broader financial avenues for artists to explore. By introducing fractional ownership of artwork NFTs allow thousands of people to co-own a single piece of art in segregated tradable compartments. Thus, enabling artwork previously exclusive to a narrow audience of wealthy individuals to now be viable to millions of people. Artists are also directly connected to a substantial audience of potential buyers without intermediary costs like dealerships or galleries, reducing their profit margins.
NFTs have taken the field of sports by storm as companies continue to invest in capturing and minting historic moments in sports and selling them as NFTs. American basketball association, the NBA, has made particular strides in this area with the "NBA Top Shot" project allowing fans to own minted digital highlights in historic basketball matches. NFTs have also made exemplary strides in esports, where tokens are minted to access and utilize power-ups or obstacles in esports.
Another industry that has benefitted abundantly from NFTs is the Music industry. In an industry that operates with the intervention of several intermediaries, from record labels and digital streaming platforms to ad agencies and management corporations, the resulting profit margins for artists are low. Here NFTs provide a more profitable alternative since artists can sell their music directly to consumers. Therefore, they no longer have to give up their profits to streaming platforms and ad agencies, which expands their profit margins significantly.
How Will NFTs Empower the E-commerce Industry?
NFTs have the potential to empower and grow the e-commerce industry to tremendous heights. By opening new markets and audiences for the industry to explore, NFTs provide a unique opportunity for brands to establish themselves on their terms. The following demonstrates a roadmap of how NFTs will bolster the e-commerce industry:
Turning Customers into Stakeholders
In today's digital age, brands are in a constant effort to connect closely with their clients. NFTs provide a new and advanced path for e-commerce businesses to build a steady clientele through strong long-term relations. They do so by turning customers into stakeholders as owning a unique asset from a brand helps them connect with the customers.
Unique Form of Transaction
NFTs have broadened the variety of transactions on blockchain technology which was previously limited to monetary funds. Users now have the option to carry out transactions in exchange for NFTs. E-commerce businesses will have the opportunity to collaborate and expand with other businesses through this manner of transaction.
In the current e-commerce industry, intermediaries like Amazon enjoy autonomous control over consumer data; hence producers have no choice but to offer them commissions in exchange for market exposure. This results in intermediaries getting the pie while producers are left with mere crumbs. Here NFTs provide a solution by connecting producers directly to the consumer market.
Through decentralization, NFTs will elevate e-commerce to a demonopolized level where smaller retailers will have equal exposure to the same audience as e-commerce giants. This will help redistribute the industry share equally. As no central authority will manipulate awareness, consumers will be able to make an informed decision on their purchases with a wide variety of considerations available.
Discussing Combased - A Cognitive Solution to Binding NFTs with E-commerce
Combased utilizes Web 3.0 technology to develop NFT applications in Web 2.0-based e-commerce businesses. With the aim to diversify and integrate the use of NFTs in e-commerce industries through Web 3.0, Combased develops solutions to simplify this process of integration. They hope to build a bridge between Web 2.0 and Web 3.0 for businesses to make a swift and profitable transition.
NFTs owned by Combased include a variety of over 2000 auto-generated Combeys, Combots, and Combiens, each with a unique set of traits, making them exclusive and one of a kind. Combased NFT collection, which can be accessed through the Elrond blockchain network, is unique as they rely on solutions while establishing their NFTs as add-ons in exchange for services. They develop benefits in exchange for NFTs where the utility of a certain benefit is directly proportionate to the amount of NFTs held.
Combased is associated with Shopify, by having an intuitive app Fungyy that allows users to import minted NFTs to Shopify as products where they can be transacted and transmitted to the buyer’s digital wallet. Traders integrating NFTs in their e-commerce establishments, as well as artists looking to commercialize their collections, can do so by using Shopify for autonomous sales. Through Shopify, Combased ensures growth in e-commerce businesses by implementing NFT technology in marketing programs. This attracts new customers and increases brand value by increasing interest in NFTs. Potential is yet untapped and you can only wonder about possible limited edition brand deals, and discounts based on particular digital artwork ownership.
The e-commerce industry has a long way to go in embedding NFTs completely for effective digital operability. With platforms like Combased working for the better of the e-commerce industry with the association of veteran platforms like Shopify, the future of this technology and integration is bright. Contact us to start your journey today!