For starters, via blockchain, intellectual property protection and copyright on software is reinforced due to the latest developments in the world of NFTs. Now, let’s dive right into all there is to know about blockchain and NFT’s.

Need-to-knows about NFTs

If you’re totally new to this, there’re a few things you should know. First of all, non-fungible tokens (NFTs) are digital representations of physical or digital items, such as software, music and artwork.

Once an NFT is created, it is stored on blockchain, which is a digitally distributed (decentralised) public ledger that exists across a network. Once the NFT is recorded, it cannot be modified or deleted. This means that a permanent, secure and accurate historical record of transactions exists.

At first, NFTs were an experiment in the digitisation of individual assets, which were popularised by using Art as the asset. These assets are tradable on blockchain networks. Today, NFTs are more than digital art - they’re able to store an unlimited variety of metadata. For example, identification & official documents, events and ticketing, healthcare, ecommerce, real estate, gaming and the Metaverse, licensing and certifications, as well as charity and fundraising.

In terms of next-gen tech development, both corporates and startups can benefit from developing NFT based applications. More and more corporate companies are getting onboard with purchasing NFTs. This creates both long- and short term value of reselling the NFTs, in turn, enhancing revenue opportunity and establishing greater reach with a new audience.

Why NFTs matter today

Start-ups can leverage NFTs in a few different ways. In most cases, start-ups aim to attract investors, increase market share and to maximise exit value. If one or more of these are on your goal-list, NFTs might come in handy for you. On this, NFTs can be utilised by start-ups to accelerate funding, as a marketing tool, to build customer communities, or to enhance the initial idea behind the start-up.

No matter your start-up’s reason for wanting to explore NFTs - blockchain and NFTs are an endorsement of evolution. These concepts are revolutionising what we’re able to do in the digital realm - from Generative Art to the Metaverse, startups are presented with endless opportunities to harvest the growth potential brought about by NFTs.

As with the evolution of any industry (think about the development of the internet), NFTs are the result of next-gen technologies’ influence in the digital world of things and this will most likely keep on impacting the digital consumer experience. NFT technology can serve as both the infrastructure for a modern business model as well as providing valuable assets and utility for consumers and investors.

What to be aware of when starting out

It can be overwhelming to decipher NFTs at first, so before diving head-first into it all, it’s good to understand a few general aspects of NFTs and the industry.

For starters, DAO’s (decentralised autonomous organisation) and community governance is a current topic of discussion. There are debates about the value and benefit of creator communities and creator economies having direct representation and share-benefits in the platforms they are using and creating value for.

Remember, NFTs don’t have to be objects of immense value, they can be fun, trivial, and entertaining. Value starts to accumulate when the NFT is associated with an item; listed on an online marketplace and used to track or control the distribution or ownership (buying, selling, reselling) of the item.

In terms of the NFT marketplaces and trade, recent developments have led to the establishment of more trustworthy digital art galleries. What does this mean for artists and buyers? The opportunity to share and trade NFT items without the fear of a lack of security in protecting the art pieces.

For example, NuPay is launching The PRISM Marketplace, where NFT-related transactions can be made safely and securely. Through PRISM, the minting/NFT creation process is made to be very simple and intuitive to use, and requires no deep understanding or familiarity with blockchain or cryptocurrencies. As the world becomes increasingly digital with digital assets commanding true value, PRISM serves as a gateway for the art industry to benefit from blockchain technology.

Lastly, when entering the world of NFTs, it’s important to stay respectful towards consumer needs and experiences. There have been criticisms aimed against large, multinational corporations using NFTs as a marketing gimmick or cash grab, from video games to movie franchises, alienating fans and consumers alike. However, NFT and blockchain technology can be used by start-ups to empower and support their work in a way which rewards and provides value and entertainment to fans and collectors.

5 Ways How NFTs are disrupting the startup landscape

NFT growth is continuously skyrocketing and we shouldn’t consider it a short-lived hype. There’s still much to learn about how NFTs are making their way into the day-to-day business activities of start-ups and corporations alike. However, one thing is certain - blockchain and NFTs will overtime become a normal practice for both businesses and consumers in their daily activities.

User Experience

When it comes to the user experience, NFTs make security and accessibility less of a worry - for both creators and users. Many people who are not familiar or well-acquainted with blockchain technology see great risk in making use of or investing in all forms of blockchain-based products. However, this technology has the potential to bring incredible benefits and virtues that can help the world in many ways, starting with redefining the user experience to make it more transparent.

Transparency

The most disruptive aspect of NFTs right now is the incredible level of transparency it brings to the startup ecosystem. For example, In terms of funding transparency, with an NFT launch as an MVP, the start-up can Mint and then sell a decided amount of NFTs to early customers. The NFT sales indicate early investment proof and start-up capital to the Founders, which helps start-ups to stay on top of transparent transacting and helps them to stay safe from financial fraud.

This has contributed towards the funding success of startups who use NFTs to drive the core of their business. We see that startup investors are driving the NFT industry’s growth potential, with a rapid increase in value. Last year, Digital analytics firm DappRadar (which tracks NFT sales) estimated that NFT trade accumulated $2.5bn in the first six months of 2021. By the end of 2021, trade was booming with the NFT market hitting $22bn!

Proof of Ownership

Considering trade, an NFT can serve as proof of ownership of the underlying work given the nature of blockchain transactions. For example, start-ups can benefit from NFTs to limit and track the distribution of copyrighted or legally protected items being sold. By authenticating ownership of the item tied to the NFT, it’s easier to identify pirated from licensed products.

Property Protection

Although blockchain is still being developed, a new revolution is in fact taking place when considering intellectual property protection. Start-ups, especially those selling software and practicing trading in digital art, can consider leveraging NFTs as an alternative to traditional intellectual property protection, such as trademarking. For example, PRISM’s ProtectArt mechanism protects against forgeries, intellectual property fraud, and prevents scams.

Sustainability

To end off, in case you’re wondering about the sustainability value of NFTs, one of the biggest issues associated with blockchain is the environmental impact it holds. However, startups hold the opportunity to lessen the environmental impact of new-tech development. For example, the principle of NuPay’s blockchain is based on environmentally friendly, green minting and utility of NFTs.

To conclude, hopefully you now have a better understanding of the world of NFTs. If you’re looking to incorporate NFT trade into your startup development, some key points to remember is that NFTs are redefining authenticity and transparency, ownership, community engagement, as well as legislation surrounding the digital world of investments. The possibilities presented by blockchain and NFTs are endless, so if you’re a start-up looking to explore the space of NFTs, now’s the time to get on board.