Global recognition of digital assets has been long-awaited. As non-fungible tokens (NFTs) make their mark across different sectors, businesses too are expected to benefit from NFT-based developments. In a study conducted by Research and Markets, a market research based company, the global NFT market is expected to grow from three billion dollars in CY2022 to $13.6 billion in CY2027, at a compound annual growth rate (CAGR) of 35% projected for the forecast period. “NFTs have the potential to bridge the gap between digital communication and asset ownership. NFT-oriented factors can not only benefit the online gaming industry but it can also shape the way brands engage with new customers and retain their current customers. Several investors and traders, of different industries, intend to utilise NFTs for their characteristics around uniqueness, originality and demand elevation capability. Business can gain advantages from NFT utilisation such as increase in marketing value, new way to raise capital, content creation, and elevation of brand awareness,” Reggie Raghav Jerath, founder and CEO, Gather Network, a Web3.0 platform, told FE Digital Currency.
As per industry experts, through NFT usage, business-to-business (B2B) companies can remove their reliance on extreme paperwork with regard to supply-chain management, and remove geographical limitations from where a business can earn revenue. Insights from DappRader, an analytics firm, stated that NFT trading volume reached $10.67 billion in Q3, CY2021, which showed an increase of 700% when compared to the previous quarter. “NFT usage has the potential to help businesses in the areas of trade license, product-oriented testing and marketing. NFTs can also be used as a metaverse-based advertisement medium,” Prashant Kumar, founder and CEO, weTrade, a cryptocurrency startup, said.
Moreover, various reports note that NFT-based businesses will enable customers and sellers to engage in an ecosystem, with deployment of protective measures such as authenticity, originality and presence of tamper-free data. Research conducted by Seven Bits Technologies, a software company, emphasised on how NFT usage can prevent data altercation and eliminate the risk of information forgery. “I believe businesses, through NFT usage, can tap into customers from unexplored quarters through protection against data plagiarism. Furthermore, business-oriented NFTs has the capability to allow users trade in money markets for creation of invoice finance, so that invoices turned into NFTs can be used as collateral or for the purposes of bill discounts and invoice clearances,” Shantanu Sharma, growth and marketing, EasyFi Network, a decentralised finance (DeFi) platform, mentioned.
Currently at a nascent stage, industry experts believe that while it is difficult to estimate the impact on cost of running the business, NFTs will act as a measure of identification, certification, documentation and provenance for goods and services, personal identity management, authentication of products in supply chain and logistics, eliminate counterfeit practices, invoice creation. Lastly, if used to run day-to-day business operations NFT will aid in availability of day-to-day working capital for business operations.