Block D Weekly Report - How to play NFT? present and future

NFT is the name of a technology, and it must carry a certain application to be valuable. Like the Internet, radio, and paper, value comes from the content and applications of information circulating on it.

After NFT attracted the first wave of attention and development from the appearance of obsessive cats, it has experienced art collections, avatar-style (show-off) NFTs in 2021, and then club and pass-style NFTs in 2022. The narrative is constantly moving towards "realistic" application" development direction. The “empowerment” that Taiwanese NFT collectors care about most is a manifestation of “collectors/consumers are looking for the value of NFT practical applications”.

Expensive and tall art-type NFTs will definitely exist in the future, and similarly, technology applications that are applied to all levels of daily life will also flourish.

So this article would like to share with you a few cases that I have read and heard in different places and the possible application directions in the future, of course, plus many of my own brain supplements.

Brand Marketing

Beeple, Takashi Murakami, Adidas, Nike, LV, Gucci, NBA... and other big artists and international first-line brands have entered the blockchain, either to accept cryptocurrency payments, or to acquire new industrial startups, to run NFT projects... Of course, this A piece is not yet their main source of profit, but it is definitely an important part of marketing and brand positioning. As the application level of NFT technology continues to expand, these brave brands and artists will definitely be at the forefront, and then bring in a large number of consumers, thereby attracting more brands to join .

It is a pity that the most common practice of Taiwanese companies is to issue NFT projects with functions similar to "membership cards", which often make people think that it is "NFT for NFT 's sake". Faster and better, there's really no need to do it the Web3 way .

evolution

From the past interaction method of "brands and consumers" to "brands and co-owners/co-creators" in the Web3 era, brands can use new interactive methods to establish relationships with customers, creating higher customer value and longer lasting loyalty.

As the boundary between virtual and reality gradually blurs, it is a gradually obvious trend that physical goods are paired with virtual empowerment (and vice versa). Of course, those who sell physical goods can also enter the virtual world through NFT.

Coca Cola

Coca-Cola has turned the classic brand image: Coca-Cola small ice bank, LOGO jacket, cards issued in 1948, and even the fizzing "sound" of Coca-Cola into a glass and mixed with ice, all turned into NFT dealers. For sale, some items have also entered the Decentraland metaverse for holders to use in it.

COACH

In the past, what a brand could provide to consumers were products or services, and “experience” was only an additional operation of brand positioning and could not be sold separately. Now with NFTs, the "brand experience" has the opportunity to be obtained independently of the product.

Coach launched 8 animal shapes during the Christmas period last year (2021), a total of 80 unique NFTs, you need to follow the official Twitter to get the method. The reward is that every holder can personally experience the service of customizing a personal Rouge package . This model makes NFT itself a tradable target and makes the "experience" valuable.

Event tickets

ASMeiR is the first NFT work launched by Tianhou singer Zhang Huimei that combines online ASMR interactive experience results and web page programs to generate real-time NFT works. As long as there are people who go to Amei's concert, they can cast for free on the official website, and the blockchain used is the Tezos chain with low fees, so it is equivalent to a very low threshold for fans who buy concert tickets. Opportunities in the NFT world.

The casting process of this NFT is designed to be exchanged only by "actual participants of the concert" (the serial number on the physical ticket and the mysterious number announced on the concert day are required at the same time). Although it is not used as the ticket itself, it also opens the NFT as the ticket itself. imagine:

prevent scalpers

In view of the openness and transparency of the data on the chain, when tickets for various events are circulated in the market in the form of NFT, any unusual ticket hoarding and trading can be detected immediately, and price fluctuations can be seen at a glance, which is convenient for price comparison plus Tickets can be obtained immediately through on-chain transactions at any time. In the future, it should be very difficult for scalpers to sell at high prices at the concert gate. A further way is to limit the transaction amount on the ticket's smart contract to prevent scalpers from selling it (although very popular events may evolve into "crypto wallet account transactions".)

Collection value

If an event is indicative, such as the 2007 press conference where Jobs showed the first iPhone (if there were NFT tickets at that time), can you imagine how much the value of the ticket will double after the event?

In addition, the design of the ticket itself (artists, celebrities), long-term empowerment after holding, investment expectation psychology, etc., will also increase its collection value.

Secondary income

Extending the above two items, for the event party, the "secondary income" can be divided into two levels: ticket sales before the event and collection value after the event. Both can bring secondary benefits to the activity party through the NFT-specific royalty mechanism*.

*Royalty mechanism: The sales mechanism of NFT allows the project party to continuously extract a certain percentage of the sales amount as royalty income in subsequent transactions. For example, Xiao Ming spent 1 ETH Mint on the official website of "Da Pai Dang NFT", and then sold it to Xiao Hua with 2 ETH. A certain percentage of the 2 ETH sales amount will be taken away by the "Da Pai Dang NFT" project party, and Xiao Ming can't actually get 2 ETH. In the future, Xiaohua will also need to pay royalties if she continues to sell. The royalty ratio is set by the project party in the smart contract, and the current market usually ranges from 5% to 30%.

The price of ticket sales may be fixed, but the circulation in the secondary market can be opened to allow the market mechanism to operate freely. For example, the price of tickets for the concert may have skyrocketed due to the sudden announcement of a celebrity guest, so the first wave of buyers will consider selling them for profit. Once the deal is made, the concert organizer can extract another royalty income. Let one ticket generate multiple revenue before the show starts .

In addition, as mentioned in the "collectible value" paragraph, if the ticket itself has some collectible value, it will continue to be traded in the secondary market, and the project party will of course have continuous royalty income.

Collection point function

Humans are animals that love to collect, and if there is an immediate benefit, people are even more likely to flock to it. For example, "the fourth game will be airdropped directly after collecting three tickets ." In the past, it was difficult to achieve such an airdrop for physical tickets, but it can be easily achieved by using NFT, and it can once again strengthen the collection value and transaction frequency of tickets in the past.

crowdfunding

In the past, the discounts that crowdfunding platforms could provide to early supporters were usually “cheaper” and “special product combinations”. Once the fundraising was over and the products were shipped, they would become a trade-off between money and goods.

In fact, buying an enabling NFT is to participate in a Web3 form of crowdfunding, buying goods or services that will only be delivered in the future, or even just a vision. If the concept of "OG", which is common in the NFT community, is brought into the crowd-funding products, it will give early supporters a more special identity and long-term brand empowerment, such as new product launch places, consumables discount rights, and revenue sharing rights. ..and many more. Special emphasis is placed on "quota" and "right" here, because basically as long as you hold an OG NFT, you can obtain the corresponding rights, even if the holder is no longer the original early holder. This will also create a secondary trading market for the NFT, and the royalty income from continued trading also provides the brand's motivation (and constraints) to continue operating its product line.

educational use

I wrote an article on V God's "soul binding" NFT presentation and imagination before, and analyzed the possible applications and obstacles of soul binding NFT. When I wrote that article, I always thought about the possibilities if NFTs were applied to the education system.

For example, the learning process of the entire compulsory education is put on the chain. Primary 1 freshmen will get a "learning account" after entering the school. The courses they have taken can get a proof of participation (POAP), and they will get an NFT certificate if they pass the exam. After each event, the data is automatically stored on the blockchain, making it easier to query and integrate data across counties, schools, and even across borders.

For example, a seventh grade teacher can easily check what courses a transfer student has taken at the previous school in Primary 2 (via NFT or POAP). University admissions reviewers can also more easily identify an applicant's academic history and ensure that it cannot be faked. The Ministry of Education or anyone who is interested in the current state of education can quickly obtain information on the chain, and make statistics into various charts and data.

The same mechanism can be applied to the job market, the field of academic research, and more.

The above is based on past experience or news I have seen, or temporary thoughts. Of course, there will be many, many possible applications of NFT. You are welcome to leave a message to share and discuss.

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