This content originally appeared on Level Up Coding - Medium and was authored by Dmytro Spilka
NFTs, or Non-Fungible Tokens, are one of the hottest trends in the world of cryptocurrency. They enable users to create a digital representation of their assets that they can trade with other players and have infinite customization options.
(Image Source: Hedgeye)
They’re often referred to as digital collectibles or assets, but their use is extremely versatile; they’re literally used in everything from video games to board games! NFTs offer a unique way for businesses to get involved in the blockchain industry without having to reinvent their business model.
What are Non-Fungible Tokens?
Non-fungible tokens (NFTs) are collectibles that are unique, and thus cannot be substituted with another token of the same type. They do not have any standardized sets of attributes that they may all share.
The major benefit of NFTs is that they cannot be copied or replaced by their creators, so there is no risk of fraud or the like. This can prevent disputes between parties and especially among those who granted them permissions to use their assets. It is also possible to easily create new tokens for existing items.
Standardization of how to describe certain attributes such as rarity or the size of an asset can be useful so that all users can easily understand those attributes and have a common language. This will make it easier to verify the provenance of assets, and we hope this will allow us all to enjoy greater transparency and trust.
The best thing about NFT is that they provide a blockchain solution for gameplay, so players won’t have to worry about losing their in-game items in case the game company goes out of business or something similar.
Here are a few ways NFTs can increase customer engagement for businesses:
1. Increase retention and loyalty with tokens that represent user accounts
Your average player today has hundreds, if not thousands of hours spent playing MMORPGS. As the gaming industry grows, so does the amount of value and time players have invested into their in-game characters. If a player’s character dies or gets deleted in-game, they lose all of their time and resources invested in building it up, which is often referred to as “sunk cost”. Surely this has led to countless players abandoning games out of frustration.
2. Tie-in in-game purchases to NFTs
Businesses can make game items into NFTs and let users trade with other players on the blockchain. This gives the in-game items real-world value, since they can be traded outside of the game. They can even tie in real life purchases to those same items by giving them a certain amount of in-game power. This creates an incentive for users to buy things from their store; if a certain sword has special powers, and you get it from buying some new shoes from their store, you’re more likely to play the game that offers such an item.
3. Connect NFTs to real-life items
NFTs can be used as a way to connect in-game items that represent real-life goods and services, or the reverse. This connection is important because it creates an incentive for players to spend their money on in-game items instead of spending real-life money on in-game goods.
4. Collateralize debts with tokens
If a user spends money on something in the game, they might not be able to pay back that debt if they don’t have enough tokens. A payment system needs to be created so that people can sell their game assets back to their lenders and pay down the debt until they’re completely out of debt. This creates an incentive for users to play your game, because they know if they spend money in the game, it will be a lot easier to pay back their debt.
5. Create a marketplace for digital assets
Users can buy and sell digital assets on your marketplace with your own token. This makes it easy for them to keep track of their balance and not have to worry about dealing with different types of cryptocurrency. It also gives you an easy way to start affording players things like special accounts or advanced in-game powers, simply by buying your token on a cryptocurrency exchange, which has become popular thanks to crypto-cold wallets now available on mobile devices, and with the latest developments in 5G connectivity, crypto adoption will become even heavier. Although it may seem like 5G has no direct impact on crypto adoption, it actually serves as a backbone to the expansion of bandwidth and power consumption support.
As you can see, the possibilities are endless with what NFTs offer businesses interested in getting involved in blockchain technology. They’re a great way to create real-world value for your business and to increase customer engagement.
Using NFTs To Increase Customer Engagement For Businesses was originally published in Level Up Coding on Medium, where people are continuing the conversation by highlighting and responding to this story.
This content originally appeared on Level Up Coding - Medium and was authored by Dmytro Spilka
Dmytro Spilka | Sciencx (2022-04-26T13:30:49+00:00) Using NFTs To Increase Customer Engagement For Businesses. Retrieved from https://www.scien.cx/2022/04/26/using-nfts-to-increase-customer-engagement-for-businesses/
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