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The Ethereum Blockchain Upgrade and how it will Change the way Brands Market NFTs

The Ethereum blockchain is by far the most popular blockchain and rightfully so with its millions of users and billions in transaction volume each day. Built to support various types of apps for art, games, social media and just about anything else you can imagine. The Ethereum Blockchain played a key role in the explosion of popularity for non-fungible tokens (NFTs) and decentralized apps. While Ethereum’s value has exploded due to the expansion of these use cases, there have been some worries about energy usage and high gas costs brought on by increased network activity.

 

The Merge POW-> POS

The fundamental restructure with Ethereum’s switch from a Proof of Work to a Proof of Stake consensus method. In contrast to PoW techniques, which require miners to solve cryptographic puzzles in order to validate transactions, PoS mechanisms intrinsically provide an incentive for validators to keep and stake tokens. By staking ETH, you can earn rewards from validating transactions. This introduces a positive, more sustainable approach for the most popular blockchain. By transitioning away from the energy-intensive equipment required for PoW mining, ETH will dramatically reduce its ecosystem’s energy requirements by 99.98%.

Ethereum will be able to process somewhere between 20,000 and 100,000 transactions per second using Proof-of-Stake. The speed improvement from the current rate of 10–20 transactions per second is up to 999,900%. These exponential speed increases will assist in reducing network congestion (bottlenecks) and gas prices. The Merge will unlock scalability and performance while still allowing ETH to operate as one of the largest and most secure network in the world.

 

In recent years, Ethereum has faced harsh criticism for its electricity demand and carbon emissions. In the last year alone, a number of brands have introduced NFT-related initiatives, only to quickly cancel them in response to consumer backlash— most concerned with the environmental impact.

In November 2021, The founder and CEO of Discord, Jason Citron announced the shift in policy just a few days after hinting at an NFT update to halting all current plans for NFT integration, following widespread community backlash as many users started canceling their Nitro subscriptions. Since it is expected that these online communities will continue to evolve, Citron’s comment does not preclude NFT inclusion in the future. Brands might describe how the new Ethereum-based NFTs emit less carbon-heavy experience than older ones, while giving trustworthy resources to assure confidence. Web3 activations will become a seamless part of long-term marketing campaigns, as brands will create new user experiences and new products.

Credit: THEGAMER

Merge + Surge + Verge + Purge + Splurge

 

A graphic from Miles Deutscher a breakdown of ETH stages. Credit: @milesdeutscher

After the September deadline, Vitalik Buterin, co-founder of ETH, spoke about the four stages of Ethereum’s roadmap.

The Surge – Starting sometime in 2023, Ethereum will introduce sharding, a scaling solution which will further enable cheap layer-2 blockchains, lower the cost of rollups or bundled transactions, and make it easier for users to operate nodes that secure the Ethereum network.

The Verge- Introduces Verkle trees as an upgrade to Merkle Proofs. This will optimize storage and help reduce node size on the Ethereum blockchain

The Purge- Aim to improve network congestion by reducing the hard drive space needed by validators

The Splurge-which will include “all the other stuff”- smaller enhancements to maintain and ensure ETH network performance.

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NFTs — “a forever transaction”—

Robbie Baxter, a Standford School of Business alumnus with over 20 years of experience in strategy consulting and marketing, coined the popular business term “membership economy,” which instructs brands on how to develop enduring relationships with their clients. Companies and organizations are always thinking about growth, with most growth being fueled by technology. Blockbuster became a victim of the world-changing around them when Netflix offered to its customers a “forever transaction” — a subscription charge giving access to the same experiences with added perks and loyalty programs for users. Blockbuster heavily depended on each movie transaction to drive revenue. This is where Netflix had the advantage. For what you paid during your weekly trip to Blockbuster, you could get a full month of unlimited rentals through Netflix. By 2010, Blockbuster had officially declared bankruptcy. This disruptive change to the industry paved the way for Netflix to experience explosive growth as technology-enabled new ways of engaging customers in an ongoing, authentic way. 

Direct-to-consumer (D2C) platforms have now fueled the upswing in the global subscription sector, which was formerly dominated by B2B subscriptions. D2C models provide simplicity and predictability that are advantageous to both businesses and their clients. They support continuous client connections and produce recurrent revenue. Therefore, it should come as no surprise that many companies are following in the footsteps of Netflix—looking for subscription management solutions to take advantage of the growth opportunity. 

 

Let’s take a dive into two e-commerce companies that are utilizing new D2C technology to build relationships with their customers. 

The first is Amazon. Its current market cap of $1.6 trillion dollars stems from its Amazon Prime members. The annual subscription takes away the pain of paying for shipping along with a host of other services for its policyholders. At the end of 2021, there were nearly 160 million Prime members in the U.S. Why does this matter? Because Prime members spend more than double on the e-commerce site than the spending of non-Prime Amazon members. Subscriptions enhance their members’ experiences as it allows the site to make recommendations for products and services you may be interested in due to past purchases. Amazon One-Click ordering saves its members time by eliminating the steps that require you to enter your user name and password for every order. 

Finding the best way to sell your products and services online is a challenge for many small businesses. Shopify’s online store platform makes it simple for companies of all sizes to launch their operations and later develop by adding new features and services. The Amazon Prime like Membership offers members exclusive content. Shopify merchants can build member engagement by offering access to  exclusive member-only web pages & products. 

 

User participation in any online internet community generally follows the 90-9-1 rule: 

  • 90% of all users are lurkers. They read, search, navigate, and observe, but don’t contribute
  • 9% of all users contribute occasionally
  • 1% of all users participate a lot and account for most of the content in the community

Users start contributing to communities soon after they go live, but everyone contributes at a different rate—participation in communities is highly skewed and unequal. A small number of hyper-contributors in the community end up producing most of the community content. To address participation in social media and online communities the best companies focus on long-term relationships with their customers. NFTs and blockchain technology are changing the infrastructure that enables trusting relationships. The idea is that NFTs are a kind of loyalty card — in the form of a cryptographic key — that a brand’s top fans can use to access exclusive items. Like Amazon, Nifty Bridge offers a One-Click Wallet which sets up wallets for our clients to make purchases in a single click. This reduces friction and creates a seamless NFT purchase experience for all the brands we work with. Through our partnership with Shopify, we can help brands strengthen their community and build long-term value and utility for their customers. Our tokengating app enables customers to unlock special perks, products and real-world experiences with merchants through NFTs to unlock special perks, products and real-world experiences with merchants through NFTs.

Whether your brand is an online business or not, a loyalty program should be a major element in your customer retention strategy. It’s your ticket to not only retaining current customers but also attracting new ones.

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Driving Change Through NFT Integration

 

NFTs are driving positive change by shifting art away from its homogenous landscape of elites to open accessibility for anyone, anywhere with a computer. Inclusivity throughout the ecosystem is the key to mainstream adoption of crypto usage. One of the top reasons people avoid crypto investing is that they simply do not understand it. Yet, you don’t need a tech or science degree to learn about crypto or blockchain technology. If you’re reading this, you’re smart enough to get into crypto. It doesn’t matter what gender you are. Just start dipping your toes into the water. NFTs present an opportunity for a new, level playing field. Not only will this hopefully lead to a more diverse and gender-balanced group of prominent artists, but it will also allow artists across income levels and geographies to have a greater chance of making a living by selling their art.

 

Women are becoming more active in NFTs and cryptocurrencies, and their art is some of the best. Maliha Abidi, a Pakistani-American artist launched her unique project, Women Rise, which produced a collection of 10,000 NFT art pieces that represented the different qualities of incredible women from all around the world. Her work focuses on fighting for marginalized communities and promoting social justice. In 2015, all United Nations member states adopted the 17 Sustainable Development Goals (17 SDG) to combat the global challenges we face— including poverty, inequality, climate change, environmental degradation, peace and justice. Women Rise is one of the first NFT projects to commit to these goals. The collection contributes to the economic empowerment of women and girls through the donation of 7.5% of all primary sales to be distributed to a mix of global organizations supporting gender equality, girls’ education, and support for mental health. Abidi has committed to building a unique school in the metaverse, which may act as a sort of virtual school and provide educational programs for hundreds of millions of kids worldwide.

Maliha Abidi: Women Rise

Enter the AZNVerse is a unique NFT collection striving to shift the global spotlight towards the South-East Asian community. The project is backed by Indonesia’s biggest crypto exchange Tokocrypto – releasing 10,000 NFTs that represent unique Asian culture and heritage. Each NFT is unique with numerous designs that include historical Asia figures. “This undertaking was born out of our drive to signify our wealthy cultural heritage as Asians,” said Eko, an AZN initiator and TKOangel. “With NFT as the medium, not only do we push for representation, but we also seek many more people to tap into NFT and dive deeper into its possibilities.” NFTs will open community space for AZN Holders to connect, contribute, and converge while amplifying Asian representation around the world. NFTs are not just about the art itself but about the community around it, the use it represents and the meaning it holds for creators and buyers.

Going to Space: Inspiration4 NFT Auction

Going to Space is an NFT collection powered by the global space community of astronauts, engineers, scientists, and artists. In 2021 The St. Jude Auction raised 200 million dollars for St. Jude Children’s Research Hospital to battle childhood cancer and provide additional funding for continued research. Mission Commander Jared Isaacman led the Inspiration4 space launch, as artists from around the world contributed to the project for the auction to begin at liftoff and end at splashdown. Mission Pilot, Dr. Sian Proctor, made history during the trip by being the first black woman to command an orbiting spacecraft and launched her first-ever NFT “Seeker” to record the accomplishment and post it to the collection. The astronauts and creative communities that took part in this historic event quickly became an inspiration for thousands of young people.

These projects are pioneering new technologies, driving brands forward in their positions on social and environmental concerns, and tapping into popular culture to target fresh audiences. In a world that has fundamentally changed, NFTs are leading positive change across brands and businesses.

 

 

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Marketing Between Industries-what to expect in years ahead

 


Today’s branding extends far beyond a piece of fruit on the back of your smartphone. It includes nearly every aspect of the brand’s identity, activity, endorsements, loyalty programs, and performance. Yet the one constant in all of these elements will always be: product differentiation. Crypto-based tools have seen an explosion of interest from brands and agencies that think Web3 will create a competitive advantage for their products. Already, the rise of non-fungible tokens (NFTs) is being harnessed by artists, brands, and creators in the business of selling physical items, digital products, and experiences to ultimately build brand awareness.

And it’s just getting started…

Kristin Robinson, Billboard’s music publishing reporter says, “Technology has always been a really big part of the music business, and has really dictated how we make music, how we consume music.” Those of us who are a little older can still remember records being sold at record stores, then onto tapes, and next was CDs. Nowadays, consumers purchase music overwhelmingly through digital downloads and subscription-based streaming services. Although making the switch might have initially appeared intimidating, most music listeners now have no trouble using these digital platforms to listen to their favorite musicians. Artists also sell experiences—attending a concert is an experience, and going backstage for an exclusive “meet and greet,” is also an experience.  Many professional musicians now get the majority of their income from this sector as online music sales profits have grown ever-leaner over the past two decades.

NFTs allow artists to more deeply incorporate participation from their biggest fans. The performer will sell tickets directly to fans for their upcoming concerts by creating and issuing NFTs for tickets. These concert tickets will serve as both pieces of art and keys to unlock additional experiences between the fan and the artist; as they will be NFTs that the fans will own forever and may proudly display. In the future, fans will evolve from purchasing a song or album to “owning their fandom”. Building a digital relationship with the artist will bring the sense of an exclusive club along with it. The traditional method of ordering a t-shirt online will be replaced by real ownership of the NFT collection. Unlocking access to the shirt will become available to fans demonstrating different levels of commitment to the artist—downloads, subscriptions, buying merch, accumulated time listening to albums, and attending concerts. 

Brands stand to benefit tremendously from the implementation of NFTs, especially as their industry comes to rely more and more on e-commerce. The online storefront, Shopify, released its NFT integration platform to unlock special perks, products and real-world experiences with merchants. Brands thrive on many elements that make NFTs possible, such as exclusivity, rarity, and special invitation. Those who acquire access to exclusive products are broadcasting their interests and priorities to the world. NFTs can forge design partnerships where NFTs provide a link between the real world and the virtual. For example, a brand could sell an NFT that represents a physical pair of shoes to be purchased in-store. Then through a partnership with online games, the brand could sell an in-game version of the NFT, allowing your digital avatar to wear them. Brands can reimagine the added value component for VIP-rewards clubs. NFTs use can be required to verify that someone has had the experience necessary to purchase the product. By owning the valuable pieces of the brand, consumers become members of an exclusive group who gain exclusive access to new merchandise drops, attend special events, and are provided with unique services. 

Switching from Web 2 to Web 3

The most popular type of content is digital. Facebook, Instagram, and Twitter have all leveraged the concept of digital content to make billions of dollars. Still, there are some drawbacks for conventional creators, particularly the ease with which content can be copied on these open platforms. This results in disproportionate compensation for their innovations and creativity. Incorporating blockchain technology will verify authenticity, by identifying the original digital object, producing a limited number of copies from it, and then uniquely tracking each replica. NFTs will grant creators more control over monetization and content rights for their creative assets, allowing them to maximize their profits.

The Value of Every Idea Lies in the Using of It.

Nike needs no introduction, the venerable manufacturer of athletic footwear and gear began to employ NFTs in 2019 to pair digital assets with their own physical products. The integration of Web3 tools will allow users to securely buy and sell Nike products securely. Yum Brands, the parent company of some of the world’s most well-known fast-food franchises produced and offered for sale a number of Taco Bell NFT gifs, all of which sold out in under 30 minutes. During the 2021 Olympic Summer Games, Team Britain released their NFT campaign where fans could show their support by purchasing NFTs for various limited-edition collectibles. There’s always something that makes your brand different from the others. Something that makes it desirable and unique. NFTs’ lasting strength stems from the fact that it addresses problems for artists, brands, and creators alike by offering a known history, immutable ownership, and practical use cases for content. 

 

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How the Shopify NFT Integration is charting a new path towards Web 3

Shopify’s NFT integration is simplifying the process of buying and selling digital products for every day consumers– here’s how:

With the new Shopify NFT beta program, brands can sell digital products or NFTs the same way they would sell a pair of pants. Beyond simply being collectibles, these tokens can be used to create unique experiences for their most loyal and active customers. App partners like Nifty Bridge can help brands leverage these tokens to increase revenue, customer retention, and brand loyalty by using token gating technology both online and in person. These experiences may include discounted merchandise, early-access to drops, in-person events, and collaborations with other brands. Token gated experiences will help brands build a stronger community and provide an easy path into the world of Web 3.

Why NFTs?

In today’s incredibly competitive ecommerce landscape, brands are constantly searching for new ways to stand out and retain customers. During COVID, brands started to realize the importance of having an online presence as they adapted to no longer being able to rely on in store experiences. Now, its not just enough to have a great product and online experience, you need to give customers a reason to keep coming back. NFTs allow your customers to engage with your brand in a new and exciting way that promotes ownership and connections between each other. Imagine just by owning a Patagonia vest you could automatically get digital and real world incentives when you shop. NFTs allow for that exact experience by providing keys to customers that can unlock a variety of experiences both in stores and online.

Success with NFTs isn’t reserved for the largest of companies either. The meta-economy will power new opportunities for small brands and will impact how customers communicate, shop, and socialize. According to Epsilon, 80% of consumers are more likely to make a purchase when brands offer personalized experiences. NFTs enable customers to display their brand affinity to others and claim a piece of your company’s identity. In the future, these tokens will act as a digital ID allowing for personalization without sacrificing privacy or security. 

To leverage NFTs and any of these features on your Shopify store, contact Nifty Bridge.

 

 

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What Global Adoption of Cryptocurrencies and NFTs mean for the Future

 

At the height of the digital finance boom, the cryptocurrency market was valued at more than $2 trillion. Since the start of 2022, cryptocurrencies plunged 60%, according to data from CoinMarketCap.com. Economic factors like inflation, stock markets, and Fed monetary policy have a major influence on the value of the crypto market. Investors in digital assets have to plan and adapt to this high volatility regularly, but there are a few ways the government is attempting to mitigate it.

 

How governments will regulate cryptocurrency markets and custody is a key dispute. There are two issues that continually surface: taxation and debanking. There is a lack of consensus among tax authorities around how to treat cryptocurrencies as they don’t have the same tax reporting as conventional investments. For instance, similar to how cryptocurrencies are taxed, the majority of NFTs may be regarded as property. In some cases, they might also be regarded as securities or commodities. There isn’t a  clear one-size-fits-all answer to the taxation of digital assets. However, a big factor is always whether the asset has the potential to grow in value over time. In these cases, NFTs start to look a lot more like investments than simply products.

Debanking is the process of traditional banks suspending the accounts of businesses with digital currency. This process is very indiscriminate in regards to where a digital asset business is allowed or not allowed to access banking services. Cyberattacks, extreme market conditions, or other operational difficulties could halt withdrawals and transfers without being backed by a bank. Being a digital asset without access to bank services is a big problem for cryptocurrencies. Some countries are already adopting their own central cryptocurrencies. This proposed idea of a retail digital dollar would result in a radical change and would not provide the same anonymity as cash. 

 

Energy and Consumption

One of the main concerns is the environmental impact of crypto mining and the large-scale emissions. Bitcoin, the world’s largest cryptocurrency, currently consumes an estimated 150TWh of electricity annually. This massively energy-intense process is occurring at a time when entire sectors of the global economy are seeking to reduce energy use and decarbonize–posing  environmental, social, and governance (ESG) problems. Without the intervention of a government incentive for blockchain companies, further opportunities for change could be lost. 

 

No Regulation, Bad Regulation, and Good Regulation

 

Across the world, nations have different levels of excitement towards the crypto market. In the United States, specific cryptocurrency laws and regulations vary state by state under existing money transmitter rules. On the federal level, the House and Senate members have introduced a few bills addressing digital assets, most notably, The Responsible Financial Innovation Act. This proposed bill is a landmark bipartisan legislation that aims to create a complete regulatory framework for digital assets.“Digital assets, blockchain technology and cryptocurrencies have experienced tremendous growth in the past few years and offer substantial potential benefits if harnessed correctly. It is critical that the United States play a leading role in developing policy to regulate new financial products, while also encouraging innovation and protecting consumers,” said Senator Gillibrand. The main refute of the adoption of this bill is determining which tokens are to be monitored and by which agencies. The SEC and the CFTC have yet to clarify the distinction between securities and commodities for the thousands of digital assets in existence, making it difficult to access the legal status of each digital asset.   

 

There is a spectrum in terms of countries looking at a blank sheet versus being locked in with their enacted legislation. Since virtual currencies are flexible, the region with the greatest crypto regulatory laws will also see the greatest adoption of cryptocurrencies. In countries like Singapore and the United Kingdom, there are already legislated systems. Some figures in the crypto industry continue to be against new regulations. According to them, it will stifle innovation and violate the fundamental decentralization that is at the heart of cryptocurrencies’ nature. Yet more regulation could mean more stability in a notoriously volatile crypto market. Proposing legislation that will give investors the certainty and clarity that their investment will be protected. Without a regulatory framework in place to ensure the protection of digital assets, few people will be enthusiastic to invest. Not all countries are following the lead of Singapore and the UK. Important exceptions include nations like Japan and New Zealand that use an income tax system as well as Switzerland, China, Germany, and the Netherlands, where there are separate tax laws for selling cryptocurrencies. Countries want to make sure that they are doing enough for these companies to want to stay and establish themselves.

 

So what sort of things will countries need to add to become a leader in the digital currency sector?

Having a crypto tax code:  Using crypto assets exposes you to potential tax liability. By introducing tax exemptions, softening new tax reporting mandates, and deferring initial tax on digital coins earned from mining, will create an environment that attracts investors.

Adding banking services for the crypto market: A new regulatory framework will increase stability by safeguarding long-term investors, deter fraud in the cryptocurrency ecosystem, and offer enterprises clear guidelines so they can innovate in the market. For cryptocurrency enthusiasts, ETFs are the holy grail that will boost liquidity and the adoption of cryptocurrencies for investment purposes. They provide exposure to the crypto without the additional expenses of ownership. 

 

The crypto market’s recent fall has given rise to some very real worries. Even the most fundamental details, such as who is in charge of regulating the area, are not entirely clear. Government action is a challenging task, but there is growing support as people understand that regulation is required for stability in the space. 

If you are looking to bridge your Web 2 business into Web 3 please connect with Nifty Bridge for more information.

 

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How to Compare and Evaluate Different Crypto Projects

You’ve found a project that seems promising, now you want to check out the details

First, take a look at the whitepaper.

It is a smart approach to research and fully understand a given NFT project, regardless of whether you are experienced crypto professional or just crypto-curious. The whitepaper serves as an informative guide presenting the necessary tools to evaluate and assess whether or not ideas are worthwhile. Whitepapers can be intimidating at first, but once you start reading a few, you’ll feel more at ease and probably will have learned something to level up your crypto acumen. 

Understand the Web 3 Space… 

The market for non-fungible tokens has already become highly fragmented as a result of the rapid growth in the number of NFT projects. Now more than ever, developers are further dividing the NFT ecosystem by building upon several different blockchains. This combination of new marketplaces and increasing complexity for the average consumer leads to many unanswered questions. Is this project adding value to the brand? Are there similar NFT projects who are offering something better? Keep in mind that not all NFT projects or collections are created equal. Before selecting which NFT project is most popular, you want to consider which project offers the most innovative and real-world use cases. When exploring new investment opportunities in the NFT space, confirm that the project you have in mind has come up with an original idea that sets itself apart from the rest. These projects will earn you new money with higher returns for early investors.

Organic or Synthetic Hype?

If the NFT project already has an active community with interesting and engaging backstories, it is unlikely to diminish in value. Still, new NFT projects are increasingly working with celebrities and influencers in order to generate buzz for their releases. Read and make sure the project’s enthusiasm is not the result of social media propaganda. 

In an industry where developers choose anonymity, reputation and experience are crucial aspects. Take a deep dive into the project’s development team. It is vital to gather information on their technical skills and history…Do I understand what this project is trying to develop? If so, you are in the right position. 

Every part of the finance industry has scammers out to steal your hard-earned money. When it comes to cryptocurrency, scams take on a slightly different appearance. Such as malicious cyberattacks for private keys, phishing attempts, and fake airdrops. The most reliable projects have a well-designed, debugged user interface wallet. These are the easiest to handle. 

If you are interested in starting an NFT project for your brand, schedule a meeting with Nifty Bridge and enjoy access to NFTs without the hassle of crypto headaches.

 

 

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The Landscape of an NFT App


Creating value with an NFT app

An NFT app allows creators, influencers, celebrities, and businesses to trade and store NFTs. The easiest way to sell your products is in digital crypto art form. NFT marketplace apps allow users to explore the platform’s many NFTs before purchasing them through their respective websites. You can look, manage, and share any NFTs you come across, and keep track of your own collection as well. But in most cases, NFT marketplaces make money by taking a percentage of each NFT sold. This forces new creators to operate on crowded platforms with high costs and in an extremely volatile market. Some crypto products have come from enabling “pump and dump” schemes with no value. Many of these NFT creators flooded marketplace exchanges like OpenSea and FTX every week to make a quick buck. Nifty Bridge combats and eliminates the possibility of any fraudulent creators seeking to quickly cash out. We are a newly constructed NFT application, that adapts to your brand’s Shopify storefront. We have the tools to let you create projects exclusively for you and your customers on your own terms. Momentum will begin to build for your brand with the integration of digital assets. 

When I buy an NFT, what exactly am I buying? And what can be an NFT?

When you buy an NFT, you buy the fact that you have just purchased the NFT. The fact of you doing so is recorded in the history of that NFT for all time, and as part of the blockchain, this fact can be verified by anyone, anywhere. You own the digital file. You own the data, and its customers, and have exclusive control over its success. With our NFT solutions, you can effortlessly extend your brand into Web 3. It’s up to you, as the creator, how many NFTs like yours exist. Uniqueness is crucial in an NFT as it gives you the advantage to raise its desirability, market time, and functionality. Businesses are scrambling to figure out the best ways to exhibit their NFTs. Demonstrating the capability and ease of use of your NFT storefront is a straightforward way of attracting more value. Through Nifty Bridge, you have the ability to leverage your digital assetsbuild a stronger community, and get in front of the eyes of your customers

The Value, the Integrity, and the Uniqueness

When the general public thinks of NFTs, they think of static NFTs.  All of the included functionality of an NFT is as a collectible—what you experience with that NFT is what you will always experience with that NFT.

Dynamic NFTs, on the other hand, have the same initial characteristics as static NFTs, but they can also be updated and responded to. They can be synced to capture and maintain information about the user. Consider a jogger’s fastest mile time, which is tracked on an NFT and updated whenever the athlete sets a new personal best. If an NFT was connected to a car’s vitals, there would be no doubt about how many times it was serviced and all the data would be saved. Dynamic NFTs allow for continual communication with the issuer and can be designed to include future transaction functionalities. They can reflect every aspect of your brand’s identity, activity, and performance. The constant in all of these elements is product differentiation. There’s always something that makes your brand different from others. Brands are being fueled by NFTs that unlock further high-end experiences, services, access to new merch and benefits, collaborations, etc. Be prepared to connect directly with future customers somewhere along the blockchain with Nifty Bridge.

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Discover new ways to store your NFT collection

What is a wallet?

NFTs are created on the blockchain and stored inside an application known as a wallet. A crypto wallet is like an online bank account that allows you to communicate and interact with the blockchain. Every wallet has a unique address (similar to routing numbers and account numbers) that allows for the transfer of NFTs from one wallet to another. Instead of a traditional password, wallets use private keys to ensure the security of your NFTs so others cannot access them. Think of it as a universal password. Crypto wallets, unlike traditional bank accounts, can be accessed from anywhere and do not rely on banks or other centralized institutions to handle the storage and movement of assets. One downside, however, is that crypto wallets have no protection against lost or stolen items. This makes the type of wallet, and how you choose to store your private key, of utmost importance.

Types of wallets

There are two types of wallets: hot wallets and cold wallets.

Hot wallets are wallets that are connected to the internet. This connection may be facilitated through crypto exchanges like CoinBase, Trezor, and MetaMask. Due to this constant connection, hot wallets are always accessible and can easily be used with a variety of online applications to trade and sell NFTs. Being connected to the internet constantly does increase the risk for online attacks and makes hot wallets much less secure.

Cold wallets are wallets that are not connected to the internet and allow NFTs to live on physical storage devices like a flash drive. Cold wallets are the most secure way to store your NFTs and other cryptocurrencies since they are not vulnerable to remote attacks. Of course, there have been numerous occasions where people misplace their cold wallets and the assets inside are lost potentially forever.

Which one is best for NFTs?

Typically the type of wallet you should use should depend on the value of the NFT being stored on the wallet. If you have a small collection and have not spent a significant amount, a hot wallet will be perfectly suitable for security as long as you take care to protect your private key. The benefits of a hot wallet’s ability to easily connect to platforms like OpenSea outweigh the cons when there is not a significant amount on the wallet to lose.

If you have large amounts of crypto and very valuable NFTs stored in your wallet, you should consider purchasing a cold wallet that still gives you the ability to connect online. An example would be Ledger’s cold storage wallet which gives you the security of a cold wallet but the accessibility of a hot wallet. This type of wallet will cost significantly more but will ensure the safety of your assets.

Seed phrase vs. private key

Your seed phrase, or recovery phrase, is a master password consisting of a group of words that unlocks your crypto wallet. Your unique seed phrase is generated when you first open a crypto account and you never want to share your seed phrase with anyone. You use your seed phrase to retrieve your account, not your private key, which you use to send or spend your crypto to just one address. Cracking seed phrases is nearly impossible. People can easily store and retrieve their private keys using a seed phrase. Although both allow someone to spend the funds in a specific wallet, seed phrases and private keys are not the same. A seed phrase can be used to generate private keys in crypto wallets. The essential point to remember is that your decision should be tailored to your personal financial needs, goals, and risk profile.

Still confused?

Crypto wallets can be intimidating at first. Every day there are new hacks and fraudulent activities that have made wallets more frightening than ever. As wallet technology continues to improve, the process of onboarding NFTs will improve as well. Companies like Nifty Bridge are taking strides to protect customers by simplifying the onboarding process and building wallet technology that is both easy to use and safe to store. If you are curious to learn more about wallets and how to keep them safe please click here for more information.

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How to build an NFT Store

A new type of commerce

As the lines between the physical and digital world continue to shrink, traditional shopping experiences have evolved to include digital products alongside physical ones. One of the biggest issues with digital products, however, is that it is nearly impossible to assign ownership. NFTs have emerged to allow brands to sell digital products in a whole new way that gives the consumer direct ownership transcribed on a public ledger known as a blockchain. But how can you bring NFTs to your storefront?

NFT store options

Traditionally, the only way to sell an NFT was through an NFT marketplace like OpenSea. OpenSea acts as an Amazon of sorts to consolidate thousands of different creators and brands’ NFTs in a single NFT store. The problem with this model, is that brands lose their audience and story in a sea of other projects and products. On top of that, the NFT space has been plagued with fraud and security risks that have turned these marketplaces into nesting grounds for hackers and scam artists. So what other options do you have if you don’t want to launch on a major marketplace?

A better way to sell NFTs

If you want to sell NFTs on your own storefront you will need to find a minting application to use. There are hundreds of different options, but the easiest will be an application that can plug into existing e-commerce platforms. This will allow you to create a shopping experience that feels safer and more natural to your customers. On top of that, choosing to launch on a traditional e-commerce storefront allows you to sell physical goods alongside digital ones. Nifty Bridge partners with Shopify to allow you to add NFTs to your store without having to deal with the complexity of crypto while also keeping your customers safe from hacks and fraud.

What should I sell on my NFT storefront?

NFTs can commonly be mistaken for solely being digital files, but that is not the case. In fact, tangible NFTs that include supplementary properties as opposed to just blockchain entities tend to hold their worth better. NFTs linked to memberships, VIP experiences and physical products are among good examples that will feel more valuable to customers. Nifty Bridge partners with a variety of brands that each sell their NFTs in unique ways. We included a few examples below:

  1. Digital and physical: NFTs can be sold as proof of authenticity for any physical good allowing brands to limit the market for counterfeits. They can also allow customers to have a digital collectible of their favorite apparel that they can trade freely or redeem for physical products in the future.
  2. NFT-based memberships: These projects allow customers to have a stake in their favorite brands and create communities using NFTs. NFT-based memberships can use their NFTs to gate specific products, content, and experiences using gating technology on their site. They can also allow for discounts to be applied on future purchases or access to voting rights and events.
  3. In-person event NFTs: These are NFTs that can be used to gain access to in-person events or even show proof of attendance. They can be traded just like a ticket would and can even be used as collectibles to show how committed a fan is to their favorite brands.