Businesses Find Value with Enterprise NFTs by Dragonchain
Big names and big sales have propelled NFTs into a pop culture status. Flashy sales figures have piqued everyone's curiosity wondering if they too can find value in NFTs. With nothing but news cycles guiding them, businesses are now forming working groups for NFT creation and implementation. Often missed in those news reports is the very real functionality of NFTs. Poised to simplify doing business in every industry, Dragonchain goes beyond the hype with Enterprise NFTs.
What is an NFT?
Most people understand a Non-Fungible Token (NFT) as a digital token that represents provable ownership in a unique item. People rarely think about NFTs as means to provide access to something or some event. Because these programmable tokens are unique and traceable via blockchain, they can represent any series of events and provide unique control mechanisms beyond collectibles.
Who is jumping in?
Visual artists like Beeple, musicians like 3LAU, Kings of Leon, and EulerBeats, and athletes like LeBron James are all fetching millions of dollars for their unique NFTs. These individual artists and athletes are creating low-volume unique NFTs to generate fresh ways for consumers to access the content. NFTs unlock a new world for creators to engage with their fans and supporters. For artists, the drive to create and mint NFTs is understandable, as NFTs also provide a mechanism for continual commissions for creators beyond the initial sale.
Who should jump in?
NFTs are not just for the arts and collectibles and have enormous positive implications for businesses. Many Industries will find value in NFTs to provide access and proof.
Businesses can issue enterprise-grade NFTs for loyalty, access control, money transfers, value control, ownership proof, and provenance. They can style money transfers and control access to data between organizations. Anyone can mint anything that is unique and needs to show proof of ownership into an NFT.
What is the current landscape?
Well known platforms being used for the creation, minting, and distribution of NFTs focus on low-volume collectibles or ownership of a unique item and cannot create millions of NFTs at scale. Most platforms use the Ethereum network for minting and distribution of NFT, for good reason. It has the largest reach and has proven security. However, the upfront costs associated with creating NFTs and the network fees for distribution are very high. These fees create an economical barrier for businesses looking to mint and distribute NFTs on a large scale.
Think of it this way. With Enterprise NFTs we're not talking about the musician that provides an NFT to 10 people giving them access to buy a specific track. It's the record label that uses NFTs as access to millions of songs through NFTs. We're not talking about a single actor who wants to provide access to one person for an event. We're talking about the studio. It's those in the business of ticketing. It's those who create the merchandise that goes along with every pop culture event. NFTs can provide digital access and ownership to the millions of people who saw the latest summer blockbuster. But it all needs to be mass-produced at scale.
Enterprise NFTs simplify everything.
Besides the arts, there are very practical everyday use cases for businesses where NFTs can provide greater control in any process they currently have. These use cases have yet to be fully implemented, but in the end will remove intermediaries and could increase production times. Customizable NFTs at scale gives businesses more flexibility to interact with partners and customers on an individual level to meet the needs of all parties instead of everyone having to adhere to one protocol.
In a traditional setting where business customers may have to provide a letter of credit or transfer funds into an escrow account, an NFT can be created. An NFT created at the initial event would be on-chain, provable, and signal that the customer has the funds to do business.
The NFT token then controls the money flow and access to various parts of the process. The NFT could potentially move between parties with information needed for each party to do business. When all parameters and all the verifications are met, the business can withdraw the funds burning the token.
For businesses looking to use blockchain, NFTs can offer freedom from jurisdictional regulations and the use of exchanges. All programmable functions can be internally mapped to a standard legal agreement through smart contracts.
It's a start.
In a first for an airline, this month airBaltic announced they will issue NFTs. The NFTs will depict an individual Airbus registration and favorite Latvia city, Kuldīga and is part of the company's newest tourism campaign. But, this initial foray into NFTs for airBaltic doesn't need to end at a tourism campaign. Imagine mass producing those NFTs into airline tickets combined with loyalty rewards, perhaps with extra incentives for first time travelers to Latvia.
Enterprise NFTs can travel with customers recording every event taken in the business environment. This "long term ticket" holds every interaction with the businesses and can trigger rewards automatically. Every transaction will result in a traceable record that can prevent double spending, fraud, abuse, and any other type of manipulation of the transactions.
All data on-chain allows the airline to query its loyalty program members and invite those with the highest balances to a valued customer event or send those with the lowest balances and earn double rewards a special promotion.
The Dragonchain Advantage
Dragonchain's advanced programming features for Enterprise NFTs bring more flexibility and lower operational costs for businesses to leverage NFTs at scale. With Enterprise NFTs, businesses can create millions or even billions of NFTs, with stable costs of less than a penny.
Our multi-chain hybrid NFT can be used to track manufacturing and supply chains as well as control access and money transfers. Each NFT and its contained data includes a higher level of security than using Ethereum alone. Dragonchain leverages multiple blockchains for decentralized proof and billions of dollars of measurable security to Bitcoin and Ethereum.
In the event a fan wants to sell an NFT as a collectible, they can then choose to export the NFT to any Interchain network such as the Ethereum network.
NFTs on Dragonchain provides unlimited scalability and interoperability. Businesses can create, mint, and distribute NFTs on the Dragonchain platform for use in any system. Every business blockchain, whether it is a record label or a commodities business, can use NFTs on the Dragonchain platform without the need to export to Ethereum. In the event a fan wants to sell an NFT as a collectible, they can then choose to export the NFT to any Interchain network such as the Ethereum network. In that event, all the files will remain on Dragonchain giving flexibility, security, and choice to consumer collectibles.
Growing social media platform, Den.Social, has already used Dragonchain's Enterprise NFT system to mint 117,233,048 Lair Ownership Tokens (LOT). Each LOT is an NFT that represents partial ownership in a Lair and comes with governance abilities and passive income for the holder. Den will continue to mint millions of NFTs every month through its community Lair Creation process.
NFT based authentication can be tied to your identity to be used for physical or virtual access to facilities or data. Dragonchain offers greater interoperability across platforms where a wallet is claimed, opening up more avenues for peer-to-peer transfers. For instance, in the future it may be possible to display your Ethereum based NFTs in the form of badges and share those badges with other Denizens on the Den platform.
NFTs have a strong future ahead with many use cases yet to be realized. Such uses will open up the world of blockchain to the masses without the burden of dealing with fluctuating prices, exchanges, and regulations. Enterprise NFTs with Dragonchain offer a way to harness the selective transparency of your business' blockchain with the combined security of Dragon Net, Bitcoin, and Ethereum.
Contact us to capitalize on the true potential of non-fungible tokens for your business today.