From availability of capital to ease of doing business; how businesses can benefit from evolution of NFTs

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Glob­al recog­ni­tion of dig­i­tal assets has been long-await­ed. As non-fun­gi­ble tokens (NFTs) make their mark across dif­fer­ent sec­tors, busi­ness­es too are expect­ed to ben­e­fit from NFT-based devel­op­ments. In a study con­duct­ed by Research and Mar­kets, a mar­ket research based com­pa­ny, the glob­al NFT mar­ket is expect­ed to grow from three bil­lion dol­lars in CY2022 to $13.6 bil­lion in CY2027, at a com­pound annu­al growth rate (CAGR) of 35% pro­ject­ed for the fore­cast peri­od. “NFTs have the poten­tial to bridge the gap between dig­i­tal com­mu­ni­ca­tion and asset own­er­ship. NFT-ori­ent­ed fac­tors can not only ben­e­fit the online gam­ing indus­try but it can also shape the way brands engage with new cus­tomers and retain their cur­rent cus­tomers. Sev­er­al investors and traders, of dif­fer­ent indus­tries, intend to utilise NFTs for their char­ac­ter­is­tics around unique­ness, orig­i­nal­i­ty and demand ele­va­tion capa­bil­i­ty. Busi­ness can gain advan­tages from NFT util­i­sa­tion such as increase in mar­ket­ing val­ue, new way to raise cap­i­tal, con­tent cre­ation, and ele­va­tion of brand aware­ness,” Reg­gie Raghav Jerath, founder and CEO, Gath­er Net­work, a Web3.0 plat­form, told FE Dig­i­tal Currency.

As per indus­try experts, through NFT usage, busi­ness-to-busi­ness (B2B) com­pa­nies can remove their reliance on extreme paper­work with regard to sup­ply-chain man­age­ment, and remove geo­graph­i­cal lim­i­ta­tions from where a busi­ness can earn rev­enue. Insights from Dap­pRad­er, an ana­lyt­ics firm, stat­ed that NFT trad­ing vol­ume reached $10.67 bil­lion in Q3, CY2021, which showed an increase of 700% when com­pared to the pre­vi­ous quar­ter. “NFT usage has the poten­tial to help busi­ness­es in the areas of trade license, prod­uct-ori­ent­ed test­ing and mar­ket­ing. NFTs can also be used as a meta­verse-based adver­tise­ment medi­um,” Prashant Kumar, founder and CEO, weTrade, a cryp­tocur­ren­cy start­up, said.

More­over, var­i­ous reports note that NFT-based busi­ness­es will enable cus­tomers and sell­ers to engage in an ecosys­tem, with deploy­ment of pro­tec­tive mea­sures such as authen­tic­i­ty, orig­i­nal­i­ty and pres­ence of tam­per-free data. Research con­duct­ed by Sev­en Bits Tech­nolo­gies, a soft­ware com­pa­ny, empha­sised on how NFT usage can pre­vent data alter­ca­tion and elim­i­nate the risk of infor­ma­tion forgery. “I believe busi­ness­es, through NFT usage, can tap into cus­tomers from unex­plored quar­ters through pro­tec­tion against data pla­gia­rism. Fur­ther­more, busi­ness-ori­ent­ed NFTs has the capa­bil­i­ty to allow users trade in mon­ey mar­kets for cre­ation of invoice finance, so that invoic­es turned into NFTs can be used as col­lat­er­al or for the pur­pos­es of bill dis­counts and invoice clear­ances,” Shan­tanu Shar­ma, growth and mar­ket­ing, Easy­Fi Net­work, a decen­tralised finance (DeFi) plat­form, mentioned. 

Cur­rent­ly at a nascent stage, indus­try experts believe that while it is dif­fi­cult to esti­mate the impact on cost of run­ning the busi­ness, NFTs will act as a mea­sure of iden­ti­fi­ca­tion, cer­ti­fi­ca­tion, doc­u­men­ta­tion and prove­nance for goods and ser­vices, per­son­al iden­ti­ty man­age­ment, authen­ti­ca­tion of prod­ucts in sup­ply chain and logis­tics, elim­i­nate coun­ter­feit prac­tices, invoice cre­ation. Last­ly, if used to run day-to-day busi­ness oper­a­tions NFT will aid in avail­abil­i­ty of day-to-day work­ing cap­i­tal for busi­ness operations.

Also Read: From events to health­care, enter­tain­ment how these sec­tors can ben­e­fit from NFT tickets

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