Amazon NFTs will be tied to real-world assets for enhanced customer experience
Tech powerhouse Amazon plans to launch NFTs that provide ownership of physical goods to improve customer experience and attract more customers.
Amazon (NASDAQ: AMZN ) is developing an initiative centered around its non-fungible tokens (NFTs) that will improve the customer experience. According to reports, the e-commerce giant is seeking to link NFT ownership to physical goods delivered to customers. This development marks a significant upgrade from Amazon’s first effort to launch a digital assets business.
The Amazon NFT platform could go live on April 24, with the company looking to notify all Prime customers in the US when it does.
By tying digital assets to real-world objects, Amazon is trying to spark further interest in NFTs as viable assets worth owning. For example, shoppers can purchase a fashion-centric NFT linked to an item of clothing and pay with a credit card. The same concept also applies to all other product categories available for sale.
Amazon CEO weighs in on projected NFTs for company
Speaking about the opportunities that abound from the NFT scheme from a broader point of view, Amazon CEO Andy Jassy said:
“I expect NFTs to continue to grow very significantly. We’re probably nowhere near adding crypto as a payment mechanism to our retail, but I think over time you’ll see crypto get bigger and — it’s possible that Amazon integrates crypto payments.”
With Amazon’s large customer base, an introduction like this NFT initiative can reach unprecedented scale. An internal source also touched on the projected scope of the initiative and its feasibility, saying:
“We knew it was possible, but now it seems like it’s really happening. It’s going to affect the existing players in the space – if they execute and do this right and are smart about it.”
However, the timing of the NFT launch still seems to be in constant flux despite the April launch date. Meanwhile, two other internal sources claim that Amazon will roll out the initiative in May.
The supporting blockchain technology for the NFT agenda remains unclear, and Amazon is considering several options. Reports say Amazon representatives working on the project have already reached out to a number of blockchain projects. These include Layer-1 blockchains, blockchain-based gaming platforms and other new and established companies.
Amazon is seeking to create a private blockchain for its NFT initiative, although it remains unclear how this goal will be realized. Over the past year, the multinational technology company has become interested in Web3 technologies.
NFT documentary
Last December, Amazon revealed a new NFT documentary featuring artists, collectors and industry specialists around the world. In the documentary, these residents share their experiences with digital assets and the positive impact of technology and art mergers.
Titled ‘NFTMe’, the documentary has featured more than 50 guests in its first season, including Peter Rafelson and Cheryl Douglas.
Amazon also funds other popular NFT platforms in addition to its own projects. For example, the tech giant played a key investment role in the $20 million Series A funding of NFT animation studio Superplastic.
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