The Future Of NFT In Online E-Commerce

What Are Non-Fungible Tokens?

Understanding what a non-fungible token is will equally help you know what a fungible token is! Let’s define an NFT first; well, NFT is based on ERC721 tokens! An ERC721 token is like any other cryptocurrency asset; it exists on top of Ethereum as part of its decentralized platform.

Why Use Non-Fungible Tokens For ECommerce?

Non-fungible tokens (NFTs) have recently gotten a lot of attention. According to Statista, Beeple’s crypto art “First 5000 Days” became the world’s most valuable NFT in March 2021, fetching 69 million dollars. You’ve probably heard that Ethereum is all about turning unique objects into unique crypto assets. This is cool, but it’s only a tiny piece of what NFTs can do for online commerce.

How Does Not Work In ECommerce?

Although non-fungible tokens are currently being used mostly for gaming, the future of NFT in online e-commerce sites extends beyond online shopping. For example, shoppers could use their unique token to buy a limited edition T-shirt (of which only 100 were made) or an album with its very own music streaming license. That is just scratching the surface as far as possible uses go; these kinds of digital goods are virtually limitless.

What Type Of ECommerce Websites Can Benefit From NFTs?

You might be wondering, what type of eCommerce websites can benefit from a non-fungible token? While many online business models would fit nicely into an ecosystem using non-fungible tokens, businesses that create digital assets (like games) and have users purchase those assets may see some of the most significant benefits. Players who earn their in-game loot could use it to buy new accessories or trade them with other players for other valuable items.

Words Of Wisdom!

As more companies look to create online marketplaces, we should expect to see a significant uptick in Non-Fungible Tokens being used for virtual items. As people get more familiar with them and understand how they can be used, that may cause an influx of NFTs beyond collectibles and into mainstream commerce. We could also see different protocols (e.g., ERC721) be adopted over time as well, depending on their implementation and use cases. That will likely continue to spark innovation within blockchain technology and lead to new use cases for different types of tokens. The future of NFT in the online e-commerce industry is indeed very bright!

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