Why your business needs an NFT marketplace strategy
Traditional businesses are thinking about what NFTs bring to them. I looked at Louis Vuitton, McDonald’s, NBA, Nike, and Coca-Cola. They all launched their NFTs,
which is amazing. That makes me excited because you can see something happening not only for the latest technology for Web 3.0 but also for traditional businesses. As a technologist, I also look into what’s happening with blockchain technologies for the Ethereum network. Some of the issues in the mainstream are scalability, adaptability, ease, and security. The Ethereum Zero Knowledge Rollup ecosystem has been amazing.
Traditionally, when we see the Ethereum Network, the more customers use it, the more expensive is the transaction fee. That’s not what the mass market can do with this technology.
But what’s changing for this industry are layer two solutions. For example, for Starkware, the transaction fee is low. As the number of users increases, the transaction fee reduces further.
That’s what I’m looking for as a cloud effect if I want to provide developer tools to come into this space.
From an economic perspective, 2021 was amazing for the NFT space, with transactions worth 20 Billion US dollars. Real estate, Defi technologies, and securities are adding to the piece. Collectibles, art, gaming, and music copyrights are also being added.
What value does NFT (Non-Fundable Token) bring to the economy?
Liquidity: you can transact these liquidity assets from the beginning rather than in the middle, or you can’t do that at all with the current technologies.
Scarcity: Normally, when NFTs are launched, they are limited. Even though they are not limited, they give you tiered permission or authority for what you can do with
Utility: You can use this technology for different purposes.
Use Case: Royal.IO from the US.
We built a platform for musicians to launch their music via tokens. The tokens give the ownership of the copyright of this music. As the token holder, you hold the copyright to this music. Musicians upload this music to Spotify. Whenever they collect the copyrights and the music streaming royalties from Spotify, they distribute the royalty based on the percentage of the ownership back to the NFT holders. That’s the value. Musicians can now list the music onto the Royal.IO; they can collect the money directly when they launch it. Musicians do not need to worry about going to different shows to earn money; they can spend more time on the creativity of the arts. Customers can use the tokens for tickets or buy more loyalties on the site.
Use Case: House in the UK
I’ll give you one example from Singapore. A traditional business bought a house in the UK. To reduce the risk of ownership, they broke it into smaller pieces. Investors could invest $100 to own these assets. In exchange, they get a part of the rental fee based on their ownership percentage.
Use Case: Gaming
From a mega-trends perspective, all the youngsters now play and grow with Roblox. Companies use NFTs for weapons, avatars, etc, and sell these to the gamers.
Adding NFT to your app in 5 minutes using Reddio
- We support multiple chains.
- We help you go to market in a few days versus a few months.
- When you don’t have the technology, you can use our APIs to program the logic based on your business logic.
- Our APIs are highly scalable and reliable.
- We have partnered with companies for NFT and cryptocurrency payment.
- You don’t need smart contract experience to build on our APIs.
NFTs can be used in general, art, and utility marketplaces. Customers can have different tiered memberships and transact using tokens. I believe every business is based on its business logic. You need not be on the marketplace, but the user experience is super critical, even if it is in-app.