The Future of NFTs: From Selling Digital Art to Creating Unique Experiences as a Super Marketing Tool
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The Future of NFTs: From Selling Digital Art to Creating Unique Experiences as a Super Marketing Tool
Non-fungible tokens (NFTs) are referred to as blockchain's "mobile moment." To date, NFT trading volume on Ethereum alone has reached $41 billion.
Navigating Web3 tides with focused insightsWritten by: 0xGregH
Compiled by: TechFlow
"Megatrends" refer to shifts in how we, as a society, operate over periods of a decade or longer—whether it's the transfer of economic power, demographic changes, resource scarcity, or technological breakthroughs.
Non-fungible tokens (NFTs) are being called blockchain’s “mobile moment.” To date, NFT trading volume on Ethereum alone has reached $41 billion.
Despite only having 4 million unique holders, many of us—including myself—are just beginning to understand this new technology, while most remain on the sidelines. However, this is changing rapidly, so let’s take a closer look...
NFT 1.0 - Permanent and Immutable
Although the first popular NFT was a cute cartoon cat game, NFT 1.0 is defined by what it enables—the ability to make digital items unique.
Example
Aesthetes, a project based in Milan, Italy, created a sensation within the XRPL community by introducing Phygital (digital replicas of physical artworks, etc.). They purchase and store artworks, converting ownership rights into fractional NFTs. This allows more people to gain financial returns from art as an asset, directly increasing its value.
This is how NFT 1.0 works in practice, succinctly summarized by this statement:
“The first version of NFTs was mostly about tokenizing digital assets, making them unique, storable, immutable, verifiable, and cryptographically secure on blockchain networks.” — Daily Coin
So what is NFT 2.0?
NFT 2.0 - Unique Experiences
NFT 2.0 differs from NFT 1.0 in three key aspects:
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Scalability: You can now stack multiple NFTs together to create an entirely new NFT. For example, if you own an avatar represented by an NFT in a virtual world, you can purchase separate NFTs for each clothing item, which collectively form your avatar NFT.
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Interactivity/Dynamism: Suppose you buy an NFT of a new football player. If he wins the "Ballon d'Or" that year, the NFT could automatically upgrade to a golden version, making it more valuable and scarce.
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Generativity: To me, this refers to smart NFTs capable of detecting their usage context. These NFTs have advanced capabilities to choose which aspect of their content to use under specific circumstances—for instance, using audio on Anchor and video on YouTube.
These three attributes enable NFT 2.0 to deliver unique experiences for fans. Many brands are already leveraging these new applications:
- Starbucks Odyssey;
- NikeLand (RTFKT);
- Australian Open.
NFT 2.0 will become a super marketing tool (my personal view).
Once profitability from JPEGs is no longer necessary, people will enter NFT collections more for utility or privileges they offer. Marketers will focus on delivering maximum value and entertainment to encourage holders to retain NFTs for as long as possible—why does this matter?
Placing something in someone’s wallet creates a direct connection with them, and around these assets, communities will form among people with shared interests.
Since you’ll be able to see all the NFTs in someone’s wallet, you’ll also be able to identify overlapping audiences across different communities. We’ve already seen the rise of TikTok and its dominant interest graph algorithm. Marketers can leverage knowledge of people’s interests to better guide products, services, and future experiences, ultimately providing better experiences for these fans.
NFT 2.0 could be key to the new decentralized paradigm—we may witness the emergence of the next wave of companies/communities on the scale of FAANG.
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