Blockchain and NFT Brand Engagement
By Tom Herman and David Charmatz
Many people equate blockchain with “crypto,” but the reality is that that application is just the first practical use case for blockchain theory and technology (2009). As you're probably aware, blockchain technology has evolved to overcome its nascent limitations, and the technology has branched to enable easier extensions to applications beyond currency swaps to more business-oriented ones, e.g.,Ethereum contracts, slogans.
But like any burgeoning technology, in 2016, two years after the introduction of contracts, blockchain experienced its first publicized setback, a theft of $150M in Ethereum crypto-currency. For this reason and due to limitations in the inherent technology, another major branch occurred to the Ethereum technology. Then, in 2018, the number of new applications expanded and brands started to build new or leverage existing applications and platforms to test the latest technology, NFTs is the most recognized application. Also during this window, the price of Bitcoins surpassed USD $20,000 and institutional money came into all aspects of the technology which engendered the FOMO mindset regarding Bitcoin, et al.
Now, with that bit of history, you should have some context to gauge how we got to the current blockchain environment and infrastructure as well as to understand how brands are leveraging blockchain-based applications to become or remain relevant to their target customers, i.e., NFTs, licensing agreements, etc.
This blog has a corresponding videochat session and leave-behind presentation deck (see download link) that show how Meta Carbon and Atomic Hub use NFTs to inform others about carbon offsets as well as provide a fun, branded, validated way to prove carbon offsets have been acquired. Those materials also provide examples of how Starbucks, Nike, the NBA, Marriott, Baltic Air, LVMH, and Dequency are using NFTs to drive retail and wholesale sales of goods and services as well as to build brand equity and engagement.
The following are some key takeaways from that Zoom session plus some things to consider if/when you decide to investigate blockchain business applications.
Key Takeaways
+ Blockchain provides a very secure, verified platform to transact business
+ NFTs can be used to increase brand engagement, not just for digital art
+ NFTs can be leveraged in the Web2 environment as well as in Web3
+ Web3+ is more permanent than Web1 or Web2
+ Consider how your brand will evolve in a Web3+ world
Considerations
1) Work with true experts in the blockchain space. It's too easy for black hat hackers to find newbies and take advantage of their mistakes.
2) You need to seriously weigh the value of porting an application from Web2 to Web3 -- just because you can port an application doesn't mean you should. Doing so may not save core resources --time, money-- or provide sufficient other benefits --brand equity, brand engagement-- to invest in a blockchain solution.
3) If you decide to undertake currency exchanges or sell goods via a blockchain platform, ensure that the platform's capabilities align with your needs, e.g., dividends, commissions, royalties, etc.
4) Because of consideration #1, don't leave assets on a platform in a "software wallet," offload them to a "hardware wallet" and put that hardware wallet in a safe, not the same safe where you secure your private keys. 😉
To learn more, please watch the accompanying session video and/or review the expanded presentation deck to get additional links to the ones above. Furthermore, if you'd like the PPTx version of the deck with full links and select notes, please contact IBCircle President and CEO Maggie Fouquet.
We hope this session provides a way for your business and/or industry to start evaluating the benefits of blockchain and its growing number of business applications. And, please feel free to contact Tom Herman or Dave Charmatz if you have questions or comments regarding the session, blockchain, or NFTs.
David Charmatz
(720) 219-5794