From availability of capital to ease of doing business; how businesses can benefit from the development of NFTs

Global recognition of digital assets has been long awaited. As non-fungible tokens (NFTs) make their mark across various sectors, businesses are also expected to benefit from NFT-based development. In a study conducted by Research and Markets, a market research based company, the global NFT market is expected to grow from $3 billion in CY2022 to $13.6 billion in CY2027, with 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. More investors and traders, from various industries, intend to use NFTs for their characteristics of uniqueness, originality and ability to increase demand. Businesses can gain benefits from NFT use such as increase in marketing value, new way of raising capital, content creation and increased brand awareness, Reggie Raghav Jerath, founder and CEO, Gather Network, a Web3.0 platform, told FE Digital.

According to industry experts, through the use of NFT, business-to-business (B2B) companies can remove the reliance on extreme paperwork in regards to supply chain management, and remove geographical limitations from where a business can earn revenue. Insights from DappRader, a research firm, stated that NFT trading volume reached $10.67 billion in Q3, CY2021, which showed a 700% increase compared to the previous quarter. “NFT use has the potential to help businesses in the areas of trade licensing, product-oriented testing and marketing. NFTs can also be used as a metaverse-based advertising medium,” said Prashant Kumar, founder and CEO, weTrade, a cryptocurrency startup.

Furthermore, various reports note that NFT-based businesses will enable customers and sellers to engage in an ecosystem, with the deployment of safeguards such as authenticity, originality and the presence of tamper-free data. Research conducted by Seven Bits Technologies, a software company, emphasized how NFT use can prevent data exchange and eliminate the risk of information falsification. “I believe businesses, through NFT use, can reach customers from unexplored sources through anti-plagiarism protection. Furthermore, business-oriented NFTs have the ability to allow users to trade in money markets to create invoice financing, so that invoices converted to NFT is can be used as collateral or for the purpose of bill discounts and invoice approvals,” Shantanu Sharma, growth and marketing, EasyFi Network, a decentralized finance (DeFi) platform, mentioned.

Currently at a nascent stage, industry experts believe that although it is difficult to estimate the impact on the cost of doing business, NFTs will serve as a measure of identification, certification, documentation and provenance for goods and services, personal identity management, authentication of products in the supply chain and logistics, eliminate counterfeiting practices, invoice creation. Finally, if used to run day-to-day business operations, NFT will help with the availability of day-to-day working capital for business operations.

Also read: From events to healthcare, entertainment how these sectors can benefit from NFT tickets

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