Are you familiar with NFTs for small business? NFTs are hitting your life and your business. Here’s everything you need to know about what your marketing assets, business contracts, certificates and documents will look like in the next year. In PLAIN English.
NFTs are the New Assets of Web 3.0 and the Blockchain
In 2020, MIT gave it’s graduates their diplomas as an NFT (Non-Fungible Token).
There’s a lot to unpack here. This is all part of the new Web 3.0 marketplace and it’s not around the corner, it’s here!
How NFTs Hit My Business
I recently signed up for marketing course and am going to be receiving the certificate — as an NFT.
That simple announcement prompted me to ask myself “Where will I put this thing?” They’re going to give me a certificate as an NFT and I’m not sure what to do with this thing.
This is what triggered this article. I want you to be prepared for what’s coming so that you can make intelligent decisions in your marketing and business.
What’s an NFT?
Let’s break this down. Fungible means that something CANNOT be distinguished from another thing. It’s interchangeable or substitutable. If I gave you a $50 bill and you gave me two $20’s and a $10 — that’s fungible; it’s still $50.
An NFT (non-fungible token) means that it’s NOT interchangeable or substitutable. It’s unique. Here are things that are non-fungible assets:
- A ticket to a concert
- A piece of art
- A certificate or diploma
- Your health records
- Legal documents
- Your driver’s license
- A deed to your house
You get the idea. NFTs aren’t just silly pictures on the internet, they are important documents or assets that cannot and should not be changed or altered in any way.
What’s the Blockchain?
The new web is “decentralized” and it runs on a new superhighway called “the blockchain” which is more secure than the centralized system we’re using now where big companies like banks, Facebook, Google, Amazon, etc. own our data.
With our existing centralized system, when you pay for something, it goes from your computer to a central organization (like a bank) and then you can access that. But so can hackers.
The blockchain is decentralized. When you pay for something on the blockchain, your payment gets logged across billions of individual computers around the world. And that is what makes it so secure. As of today, it’s nearly impossible to hack into the blockchain; there are just too many nodes to hack.
Why are NFTs Good for Small Businesses?
NFTs are good because they are unique and secure. They cannot be forged or duplicated.
This means that if you create an asset (an NFT) on the blockchain, it’s permanent, it’s unique, and if you sell it, it will have a certified ownership trail and history.
- If you’re a graphic designer, your work can be created as an NFT and cannot be used without payment. Anything from images, graphics, photos,
- If you’re a coach or consultant who sells tickets to live events, you can sell NFT tickets or membership programs
- Loyalty programs for customers
- Unique content that you create; videos, infographics, etc.
- Coupons for products and services
- Non-profit and charity fundraising
Wait — WHERE do I put my NFTs?
And, now it gets fun. Your NFTs live on the blockchain. And any assets that live on the blockchain live in “Wallets”.
If you were to purchase any cryptocurrency like Bitcoin, you would keep that cryptocurrency in a “Wallet” to keep it safe.
The same is true for your NFTs. You’re going to need a Wallet that is safe and secure.
What’s an NFT Wallet?
An NFT Wallet is a digital storage space where you can securely store your non-fungible tokens.
Where do I get an NFT Wallet?
There are two types of NFT wallets;
- Hard wallet – which looks like a USB drive
- Soft wallet – an online wallet that you can login to
NFT wallets are designed to hold specific types of assets. So, you need to make sure that the wallet you choose can hold the NFT and cryptocurrency assets that you have.
I haven’t committed to a soft wallet yet here are the ones I have looked at so far.
- Coinbase Wallet: I don’t recommend this one right now. Coinbase is having issues right now and I’m concerned that it will disappear. So I don’t want to put my things in here.
- Crypto.com: I’ve installed this wallet but haven’t placed any assets in there. It holds hundreds of cryptocurrencies and NFTs. They get decent reviews and can be a good choice.
Here are some articles that recommend a variety of wallets:
- Best for Easy Browser Access: MetaMask
- Motley Fool’s 5 Best Wallets
- Business2Community Recommends
I’ve recently purchased a Trezor HARD wallet for all of my NFT assets and cryptocurrency.
I really like the idea of having something physical in my hands where I can move my cryptocurrency and NFT assets. Because you know and I know that platforms come and go and I don’t want to lose access to my assets because a platform went poof.
Where to Learn More About NFTs and the Impact on Your Business
I’m not advocating that you jump head-first into NFTs. I’m recommending that you start reading, learning and understanding NFTs and how your marketing and your business will be impacted.
NFT and Beyond Podcast: Lee Richter has run a dozen successful businesses generating over $100 million in revenue. Lately she’s been an NFT expert. I’ve seen her on a couple of webinars and she does a terrific job of explaining NFTs for Small Business.
What NFT’s Can Do For Small Business: Love this article by MailChimp because it gives you practical examples of how small businesses such as a restaurant are using NFTs.
How brands are using NFTs as a Marketing Tool: You favorite brands are already using NFTs in their marketing. Yeah, I know they are big and can do whatever they want, but small business isn’t far behind and you can get some interesting brainstorming ideas here.