Non-Fungible Token (NFT) is the latest buzzword that has got brands and customers worldwide completely hooked. While many critics are quick to write it off as a fad that is doomed to be forgotten sooner than later, it is hard to deny the countless benefits that it has to offer for business owners and consumers alike, particularly in redefining the future of product ownership.
What is NFT, and why is it in trend right now?
NFTs are crypto tokens that are unique, verifiable units of data. They can represent a range of digital files including photos and videos. They can also be linked to physical products and capture their journey and transactions in real time.
Statistics show that a whopping $174 million has been spent on NFTs since 2017. Valuable goods and collectibles are being sold as NFTs for millions of dollars around the world, and the number of luxury brands hopping on the NFT bandwagon is rising day by day.
Recently, the popular jewelry and watchmaking brand Jacob & Co. sold an NFT watch for $100000 at an auction, while Argentinian designer Andrés Reisinger sold ten pieces of virtual furniture with the most expensive item getting purchased for almost $70,000. Another notable example is when Metakovan (founder and financer of NFT fund Metapurse) bought renowned digital artist Beeple’s 5,000-day collection for nearly $70 million.
While these are some of the more expensive and eyebrow-raising examples of NFTs in action, popular luxury brands are also adopting NFTs for improving customer convenience and awareness. Instead of dealing with virtual products alone, brands are linking physical products to NFTs to make them digitally manageable.
For instance, Nike has secured a patent for blockchain enabled sneakers called Crypto Kicks that can track the lifecycle and ownership of genuine Nike sneakers. However, small scale luxury brands have only started to realise the immense potential that NFTs hold in revolutionizing the way that customers own their products.
How is Authlink revolutionizing luxury product ownership?
A common issue that critics of NFTs have is that their value matters only in cyberspace, and that they are devoid of any relevance or worth in the physical world. However, this is not the case while employing them with Authlink.
In Authlink’s blockchain driven platform, luxury brands can create and manage the NFTs of their physical products. Though NFTs might be an alien concept for many, the platform offers a secure, convenient and user-friendly space to work with them without hassles. The following are the major benefits of using NFTs with Authlink:
A dynamic and real-time mirror of all product related transactions:
Using Authlink’s platform, it is possible to create a permanent and verifiable link between a physical product and an NFT. The NFTs in the platform record the product journey along the supply chain, as it passes from the manufacturer to the supplier to the customer. Authlink thereby promotes transparency of the product life cycle throughout the supply chain system, from start to finish. A common risk that luxury brands face is of their products getting stolen or counterfeited along the way to the stores. By using Authlink’s platform to track product journey, each link in the supply chain can be held accountable, and their activities can be monitored by the product owners.
A convenient way to ensure the authenticity of products in the ecosystem:
Product authenticity is never compromised, and is verifiable across Authlink’s digital ecosystem. As the NFT owner is always in complete control of the flow of product related information in Authlink’s platform, there is minimal risk of it getting manipulated or tampered during any point of time. The products circulating in the luxury goods market are always more likely to get counterfeited than others, and Authlink can help protect the authenticity of each product in the system.
A secure and convenient setup for reselling and transferring product ownership:
Creating NFT products in Authlink’s system provides an easy way for product owners to transfer digital ownership without spending unnecessary time and effort on it. Through Authlink’s platform, the entire process of transferring or reselling physical product ownership can be completed in a matter of minutes. When dealing with luxury products that tend to be expensive in nature, not only does it make things more convenient for all involved, but it also ensures security and efficiency in tracing and verifying ownership whenever required.
A cryptographically secure platform to store all product related information:
Authlink’s platform makes it quick and efficient to manage product related transactions without compromising on the security of the information. All the data that is uploaded into the digitally driven platform under the relevant NFTs are cryptographically secured, and only editable by the product owner. This is a far better alternative to keeping physical records of luxury products that are more prone to getting lost, manipulated or stolen. It also rules out the need for middlemen in managing the product ownership of valuable products.
In Authlink’s digitally enhanced ecosystem, product ownership is easily verifiable, accessible and traceable. Does creating NFTs with Authlink seem interesting and relevant for your brand’s luxury products?