NFT art is a new craze that is creating quite a stir. People are absolutely obsessed about NFT, as evidenced by the $590,000 price tag on an adorable pop-tart cat meme and the nearly $3 million spent on the very first tweet from back in 2006.
However, the increasing trend of crypto art is more than just the sale of pictures and films for astronomical sums of money; it’s also a way to introduce exclusive ownership to the internet. Modern consumers want this kind of return since buying NFT art confers privilege and status. Hugo Boss and Estée Lauder are among the first businesses to take advantage of this new opportunity, but many more will soon do the same.
But what exactly does the idea of crypto art involve, and how can a loyalty programme make the most of it? With an overview of the potential drawbacks and the potential future of the technology, this article will provide you with all the information you need to employ NFTs for client retention.
Why Is NFT Art Driving People Crazy?
But what connection does proof have to the recent popularity of digital art sales? Actually, quite a lot. We have only discussed the “T” in NFT, which stands for “Token,” up until this point. But the “NF” or “Non-Fungible” element of the abbreviation is what makes someone willing to spend $590,000 for a Nyan Cat viral GIF.
If something is non-fungible, only one of it exists. It has a history, is one of a kind, and cannot be replaced. A pair of shoes is interchangeable because there are countless pairs to choose from in your neighbourhood shoe stores. But in your opinion, the shoes you wore to win your neighbourhood marathon were unique. If the league champions sign a regular baseball, it turns into a collection and is instantly worth hundreds of dollars, if not more. A regular baseball is dirt cheap. The strength of “non-fungible” is this.
Owning and collecting digital art is a new trend for the 2020s.
Digital art belonged in the fungible bin in the past—early 2020, actually, that’s how recent the NFT trend is. Even if you generated a beautiful picture, duplicating it merely required a few clicks. Furthermore, it was quite challenging to establish the provenance and ownership of such artefacts. This has changed forever with the introduction of the non-fungible token as the fail-proof authentication seal.
It’s not really the token or the artwork itself that matters when it comes to NFT art (though both do play an important role). It’s the sense of ownership that counts. The buyer of the Nyan Cat NFT or the first Tweet in history can now claim ownership of a significant piece of Internet history!
Getting Started with Digital Art
But this raises the question: What qualifies as NFT art? Anything you desire is the response. Any digital media can instantly become NFT art by simply adding the non-fungible token to it. Of course, if you want it to become popular, you have to make sure the audience finds value in the medium itself.
NFT examples include:
established designers and artists’ and their digital creations
Unreleased singles by well-known artists
Bloopers or behind-the-scenes video from movies
clips of thrilling sporting events, including NBA players scoring
But keep in mind that in order for the NFT to be legitimate, you must be a recognised authority in your field of digital art. For instance, Jack Dorsey, co-founder and CEO of Twitter, published the first tweet, and the fact that he did so is the only reason it was bought for $3 million.
Why is NFT Art the ideal reward and a paradigm-shifting tool for creating brand love?
Why then is NFT art the next great thing for corporations to satisfy the public? First of all, making cryptographic art is simple. The only requirement is to upload the digital media to an NFT marketplace or auction site, followed by a tiny cryptocurrency payment.
But most importantly, crypto art is simple to brand, which makes it perfect for connecting with clients. It will undoubtedly be an exciting and unforgettable experience when a customer receives NFT art from their favourite brand influencer, a vintage photograph of the flagship store’s grand opening, or a striking digital work of art that is related to the brand, which will encourage even more.
Last but not least, having NFT art from their preferred brand provides customers a feeling of special treatment, which increases their likelihood of sharing the story on social media and igniting interest among other customers.
Use of NFT Art Has Drawbacks: Trouble in Paradise
The world of NFT is unfortunately not all sunshine and rainbows, as technology has a negative impact on the environment. As was already established, the blockchain that now houses NFTs, Ethereum, requires the combined processing power of a large number of computers. We’re referring to a sizable number of massive warehouses that are filled to the brim with machinery that is only used to execute blockchain-related calculations and mine cryptocurrencies.
Such a large infrastructure requires a lot of energy and has a significant carbon footprint to operate. According to Digiconomist’s Ethereum Energy Consumption Index, the annual energy required to power all devices on the Ethereum network is similar to Chile’s total annual energy consumption, while Ethereum’s annual carbon footprint is comparable to Ireland’s.
What does the future of NFT art hold?
Crypto art won’t be a novelty indefinitely, and its popularity will eventually fade. However, receiving an NFT from your preferred brand can be a special occasion, therefore this technology is certain to play a significant role in next-generation loyalty programmes.
Naturally, the Ethereum development team is aware of the sustainability issue and is working on an Ethereum 2.0 version that uses less energy. This may eventually lead to a wider acceptance of the use of non-fungible tokens, enabling NFT art to truly become a part of our daily life.
Redefining the Operation of Digital Rewards
Whether you’re operating an omnichannel or eCommerce business, NFT art is a fantastic incentive for a technologically savvy audience. NFTs in loyalty programmes will also see new use cases developed when the technology is accepted by a wider audience.
Are you curious to know more about the other features of a modern loyalty programme? Feel free to ask for a trial or email us your RFP; our experts are always eager to speak with you.
To learn more about retaining consumers, see our ebook on rewards for loyalty programmes in the interim.