Building digital asset through NFT strategies


Non-fungible tokens (NFTs) may appear to be a passing fad, but with over $10 billion transacted in the third quarter of 2021 alone, it's evident that this burgeoning technology — a blockchain-based tool that allows anybody to monetize digital material — is quickly becoming a big business.
It is now more than a decade that crypto currencies has been in the market - ever since Bitcoin was launched in 2009.
 
While cryptocurrencies have been present for more than a decade since the debut of Bitcoin in 2009, the phenomena of Non-Fungible Tokens (NFTs) has gained up just now. These unique cryptographic tokens generated on solid blockchain networks like Ethereum and TRON are valued several millions of dollars due to tremendous demand from investors. Let's have a look at the business plan of the NFT Marketplace.
 
A well-organized NFT marketplace lays behind the surge in transactions for buying and selling these crypto collectibles. It efficiently manages all of the trading operations of investors. Axie Infinity, Decentraland, OpenSea, NBA Top Shot, Rarible, Sorare, and SuperRare are just a few of the well-known NFT selling platforms.
 
Many experts in their latest report mentioned something called "hype cycle" that defined maturation of new industries and products. Among them, nonfungible tokens, or NFTs appeared at the top of the curve. However, there are arguments suggesting that NFTs has not reached the peak point but is more into “Innovation Trigger” stage. So, when considering the nft business plan, it should be understood that this technology’s commercial viability is still under the development phase.
 
Basically, this is the time for exponential curve and is arguably the perfect time to create the nft pitch deck. And, in particular for media and entertainment assets, this is the right time to consider starting their NFT strategies at a time when they can establish a sustainable competitive edge.

What is NFT?


Any digital asset whose ownership is recorded on the blockchain can be an NFT, which are generally art, collectibles, and other unique goods used in games or virtual worlds. Blockchain-native firms are unlocking the ideal commercial models for the technology as corporations enter this new industry, while older organisations are studying how to exploit these assets inside existing business models.

NFT business - How to make money?

It's time to learn about the industry, how to create nft business plan and how to make money using NFTs. We all understand that the goal of any business is to make money. A business model aids in the formation, development, and maintenance of a company. The most popular way for enterprises to make money in this ecosystem is by selling NFTs. Because there is abundant demand for virtual goods, this business model is an unequivocal and undeniable choice. And as per the latest reports, it also performs admirably.

As previously stated, the most common approach for companies in the NFT ecosystem to generate revenue is through selling NFTs directly to users. Video game producers and creators, for example, have already entered the NFT market. The revenue generated by the NFT business accounts for the majority of the total revenues. Experts believe that selling NFTs directly to customers will generate revenue in the near future.

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Keys to NFT Success

When creating the nft pitch deck for clients, it should echo the excellent unit economics and include the following points -

  • Low marginal cost

Virtual trading cards or comics have a lower marginal cost of manufacture and dissemination than traditional physical trading cards or comics. While both need upfront expenses for designers, selling assets through a digital channel saves thousands of dollars in printing production costs, as well as the time and effort required to manage retail channels to get products into stores. Converting digital artwork into NFTs necessitates paying "gas fees" to mint tokens on a blockchain, which can cost up to $150, as well as a tiny monthly subscription charge, which varies depending on which platform or marketplace you choose as an outlet.

  • Improved customer engagement
It is possible to increase the customer base with NFTs because it involves dealing with the digitally native generations for the companies. Experts believe that this can foster a positive impact on customer retention and also create a spillover effect that can work perfectly for sports teams and having more people involved in it. And, it can create a recurring revenue potential for the company.
  • Know the Risks 

So, what's keeping your organization from joining the NFT bandwagon? Even a believer like me realizes that the industry is in its infancy and is largely unregulated. To begin with, not all NFTs are the same. Yes, the ownership certificate kept on the public blockchain ledger is immutable and unforgeable. It's important to understand, though, that this token is only a link to a digital file stored on a server. And not every server is the same.

Link rot, which occurs when hyperlinks break, is a severe issue. This usually occurs when the target file is relocated to a new server without the connection being updated, or when the server goes down. Keep track of where the digital file is stored when making or purchasing an NFT. The likelihood of the NFT being lost increases dramatically when it is stored on a local server. A public cloud storage solution decreases this danger, but a decentralized server is even better. You should also make sure the token's metadata is saved on a decentralized server.

  • Limitless potential

Intellectual property rights are also important to consider, however this is still a developing field. Because there is no legal precedence in the United States for NFT ownership, a number of significant questions about authors' retention of commercial rights and future licencing are still being contested or refined, says the experts.

Finally, the ecological impact must be taken into account. The Ethereum network, which generates as much carbon as some small countries, is where most NFTs are traded and exchanged. That's largely because the decentralized consensus technique it uses to validate transactions, known as proof of work, necessitates a lot of computational power. Companies, as well as individual artists, may face backlash or loss of sales from environmentally concerned clients.

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