The world is becoming more digital, so are products. Items such as albums, arts, video games copies to real-world assets. It can be said that NFTs are being preferred by more people because of their convenience. However, there are still some people who stay traditionally. So, what will people prefer? Physical items or NFTs?
What are physical items and NFTs?
A physical product is one that can be physically touched and shipped to a customer after it has been sold. Some examples of physical items are music albums, paintings, etc.
NFTs, or non — fungible tokens, can be understood as assets that have been tokenized through a blockchain. An NFT can be arts and more. NFTs can be traded for cash, cryptocurrencies or other NFTs. Unlike cryptocurrencies, NFTs only have a single unit, meaning that they can not be reproduced.
People who choose physical items have their own reasons as they can touch and feel them physically. However, it can not be denied that NFTs offer buyers various benefits such as safety, ownership verification, authenticity, transferability, and customization.
When it comes to non-fungible items, the most concerning issue is security and safety. However, as mentioned above, NFTs are stored and updated on the blockchain network. Therefore, they are highly secure and transparent. It is almost impossible to modify, delete, change or hack.
When purchasing an NFT, the buyers become the sole owner of it. Ownership is connected to a single account since NFT functions on a public and transparent blockchain network. Buying an NFT means purchasing an intellectual property. Because everything is embedded in the blockchain, it is simple to determine the owners. Non-fungible tokens cannot be exchanged for another NFT, but they can be bought and sold, making ownership transfer easier.
The authenticity of NFTs is one of their most valuable aspects. The distinguishing feature of non-fungible tokens is their uniqueness, as they are created on the blockchain with a unique record. To represent the limited amount, NFT creators only issue a specific number of NFTs; multiple replicas are permitted only in a few cases, such as event tickets. Furthermore, blockchain-based NFTs are irreversible.
Owners are able to authenticate publicly without a third party. Their NTFs are unique and represent their signatures and ownership. Another feature of NFTs is that they can be fractionalized, which means that people can own a piece of NFTs, like holding shares of a company. For example, some companies sell fractionalized ownership of real estate through NFTs.
NFTs allow users to freely customize assets. Since NFTs are built on smart contracts, it gives users complete control over each token and permission to customize everything from the color theme to the logo. People can customize NFTs based on their preferences. It can be a custom painting, image, meme, etc.
It is easy to trade NFTs freely on specific markets with a wide range of trading methods. This benefit can be mostly recognized in the gaming industry. Many games provide in-game items, which players can buy to enhance their gaming experience. These items can come from NFTs and be exchanged in the marketplace for profits or kept in a virtual wallet.
NFTs can be more than just items. For a long time, exclusive membership programs have been used by brands to develop strong connections with their customers. With NFT, loyalty programs can get a huge upgrade, unlocking new opportunities for growth for businesses. NFT-based memberships provide a one-of-a-kind opportunity for independent creators and content creators to develop long-term businesses. Companies can build and increase customer loyalty and open new revenue streams by using NFTs to manage access to exclusive content, assets, or events.
Nowadays, there are many brands that use NFT — based membership systems to reward their customers. Access is granted when a user connects their crypto wallet to the company’s platform and validates their ownership of a membership NFT. These tokens can then be used to gain access to a variety of online and offline benefits, such as access to exclusive events and services, among other things.
NFTs themselves are more than just a casual market asset. Its ultimate goal is to serve as a method for controlling and managing sensitive and private data about a company or an individual. Its uniqueness and authenticity make it valuable and long-lasting. NFTs have the potential to transform how people interact with the digital world. By using an NFT as a membership token, brands can provide members with greater security, flexibility, and convenience.
About FADO Go
FADO Go is a blockchain- based platform that can help increase loyalty by building loyalty programs effectively and improving customers’ shopping experience.
FADO Go’s Loyalty Solution
The basic features of FADO Go’s Blockchain Loyalty solution:
1/ Issue and tokenize rewards points for customers as well as build membership tiers, generate coupons and vouchers on the blockchain
2/ Develop criteria for rewarding customers when shopping, interacting with business activities on social networks, supporting and referring businesses to friends and relatives, etc.
3/ The management system for partners or operations will automatically provide the necessary metrics to effectively manage customer programs.
Benefits of FADO Go’s Blockchain Loyalty solution
1/ The security, transparency and immutability of blockchain technology are mined and applied to the reward system.
2/ Membership cards, coupons, vouchers by NFTs with many exclusive features and independent exchange in the market.
3/ The decentralized network of loyalty points connects users not only to the FADO Group ecosystem but also from different ecosystems, and easily converts reward points between companies participating in the platform.