How can you use NFTs to improve your Web3 projects?

Wrong way: How can we make money through NFTs? Right way: Why would users buy our NFT and how do they add value to them? Stop trying to sell technology. Sell solutions.

NFTs add value to both users and projects. To users it's a way to be part of something bigger and access a whole new type of utilities. It is a way to share the success of the projects users promote. For brands & web3 projects, it's a way to engage with your power users in a much more powerful way. Earlier, brands could collect communication touchpoints as emails etc. With NFTs, they collect digital identities through wallets – opening up unlimited marketing potential.

NFTs are a technology, they are not an end in themselves. So make the best use of their capacities to optimize for your context, if it makes sense. NFTs are just a technology, and should not be used as something else. Important applications are: Digital Asset Ownership: - Leverage NFTs to represent ownership of unique digital assets. - Utilize smart contracts on blockchain networks to ensure the scarcity, authenticity, and transferability of NFTs. Interoperability and Standards: - Adhere to established standards (e.g., ERC-721, ERC-1155) to ensure interoperability and compatibility of NFTs. - Explore and contribute to emerging standards that promote the seamless integration and transferability.

NFT's are instrumental in the web3 space & projects for many reasons. Firstly, they enable “tokenization of digital assets,” providing ownership of things like art, music, and virtual real estate. This ownership is secured on the blockchain, which shows transparency in everything that happens with that NFT. Secondly, it allows users to monazite their NFT’s directly in a project or market. Their ability to represent rarity make NFT’s invaluable assets in the Web3 ecosystem.

An NFT can represent a direct connection between the brand and its fans and customers across different touchpoints. It can enable a new type of relationship where brands benefit from deeper customer engagement, while customers benefit by having exclusive benefits, rewards, and access to experiences further strengthening their loyalty to the brand.

Another challenge is to rely on 3rd parties when it comes to NFTs. A clear example is when Open Sea decided to change their policy regarding royalties or when Portion disappears as a marketplace. What happened with the NFT minted on their platform? Well... an option will be to host your own marketplace like many brands are doing in 2023.

Great point, @Daniela Malgui. I would add that the challenge often lies in the proper conception of a true strategy, followed by the difficulty of "translating" the brand's vision into the actual collection. Quite a few brands jumped on the NFT hype "just" to also have an NFT collection - most of these fell flat of expectations, and rightly so. Web2 gave brands an audience, web3 gives them the possibility to create a true community around their values. This opportunity goes hand in hand with the with the responsibility of planning your NFT strategy properly and for the long run.

The complexity of the fragmented and intermediary-heavy digital ecosystem serves as a hinderance to maintstream adoption of digital assets. Moving NFTs over the internet would be more efficient.

The volatility of crypto is an extra challenge to consider. There are 2 types of owners, HODLers and flippers. Daily trading volume and price swings come from the latter. The moment that you issue an NFT collection, it's like you're going IPO - you need to make sure that you can support the floor. Once momentum is lost, it's often forever, and this will mean the dawn of your dApp as well.

Integrating NFTs into Web3 projects not only brings opportunities but also specific challenges, especially regarding tax and accounting compliance. Ensuring adherence to intellectual property rights, data privacy laws, and tax regulations is crucial to safeguard your project's legality and credibility. Moreover, accounting for the acquisition, holding, and sale of NFTs in accordance with tax requirements is essential to maintain compliance.

Currently, given the hype around them, it is challenging to get an agency to work on them for you without over-charging, but ultimately this is what I advise taking into account: Tokenization of Unique Assets: - Identify and tokenize unique digital or real-world assets, ensuring that each NFT represents an exclusive and distinguishable item. - Implement smart contracts on blockchain networks to define the rules and properties of the NFT, including ownership or transferability. Metadata and Utility Design: - Develop comprehensive metadata for each NFT, providing relevant information about the asset. - Consider incorporating utility features into NFTs, enabling additional functionalities or access to exclusive content.

When you start your first NFT collection, it often pays to get an experienced agency or consultant involved. Not only can they help you define the right long-term (!) strategy, but also provide or connect you with experienced resources to build the smart contract, conduct security audits and ensure a smooth launch.

Acá te voy a ahorrar cientos y quizás miles de dólares, no es necesario contratar a una súper agencia o a un desarrollador súper pro. Existen herramientas low-code como ThirdWeb que te ayuda a la creación de NFTs con una configuración dinámica pero muy potente. Como web3 product manager he tenido la oportunidad de diseñar y lanzar múltiples productos en blockchain, con gusto puedo apoyarte en tu proyecto. Éxitos 🙌🏼

A good set of tool that help you start interacting with the blockchain without knowing anything about development are: - Manifold - Bueno - OpenSea These helps you deploy your project and allow minting opportunities. Usually, though, these are for artist or people that already have experience in working in web3. If you're starting from scratch, it always pay off to relay on consultant or advisors with a solid and long experience that will guide you in the first steps. Have a wider understanding of the market is paramount before diving deep into tech part.

To create NFTs, you'll need to select a blockchain, design your digital asset, and develop smart contracts. My approach has involved using Ethereum due to its wide adoption and robust developer community, alongside tools like OpenZeppelin for secure smart contract development.

La integración a nivel tecnológico es sencillo, tokenizas un activo de tu plataforma. El truco está en el modelo de negocio que quieras darle. Algunas recomendaciones son: - Suscripción: usa NFTs para entregar acceso a ciertos espacios de tu comunidad por cierto tiempo. - Rewards: entrega coleccionables digitales (NFTs) al completar ciertas tareas. - Eventos: participación únicamente a quienes tengan ciertos NFTs. Espero encuentres útil esta información, saludos 👋

The thing you should look into is not how can I integrate NFT in web3 project but rather how can I create a strategy that start on web2, goes to web3 and then create value back in web2/IRL. NFTs are a strong and solid way for you to position within the market, whilst enabling massive retention marketing opportunities. They're not just jpegs but, rather, channels to jumpstart customers activation. Use them properly and wisely!

Web3 product teams can position NFTs as gatekeeper. For example: NFT Business Models such as self-sovereignty. Have you ever signed into a website with your Gmail address? Do you wonder why a third party like Google or Facebook is the gatekeeper between you and another entity?

Integration means ensuring your NFTs interact seamlessly with your dApp. This involves smart contract development and front-end integration. In my projects, APIs like Web3.js have been critical for this integration, enabling smooth user interactions with the blockchain.

Key principles in marketing and distributing NFTs (Non-Fungible Tokens) in Web3 projects are: Strategic Promotion and Community Engagement: - Develop a comprehensive marketing strategy to promote NFT collections through social media, influencers, and online communities. - Foster a vibrant and engaged community around the project, utilizing platforms like Discord and Telegram to interact with potential buyers and existing holders. - Implement exclusive promotions, giveaways, and events to generate hype and attract attention to the NFT collection. Also important: - Choose accessible and user-friendly platforms for minting and purchasing NFTs. - Explore various NFT marketplaces that align project goals and target audience.

Well-known brands are launching NFTs mostly collaborating with artists on the space. They do so because their data base is not enough, they need someone familiar with the space to validate their project. So, unless you are that brand, start by creating your community gathering people who connect with your values and benefit from your content. When building communities, know that 90% will be consumers, 9% will engage, and only 1% will actually give back. That 1% will most probably be your buyers. How many NFTs to launch? Maximum a 1/3 of your community and remember that you must have a marketing plan in place in order to sold out.

When marketing their Web3 initiatives and NFTs - It is important for traditional brands not to rely too heavily on their brand strength in the traditional business and extrapolate that to the Web3 space. Brands need to prove their relevance and genuine intentions when entering Web3. Being a successful brand is simply not enough (anymore).

The answer to this question is as valuable as a million dollars. 💵 Venturing into the NFT space is thrilling but risky. Success requires a bulletproof strategy, a dynamic marketing plan, and unwavering community support. It's not just about NFTs; it's about creating an experience that captivates and resonates in this dynamic digital landscape

Effective marketing strategies include leveraging social media, collaborations with influencers, and engaging storytelling. Distribution can be done via NFT marketplaces or custom-built platforms. My experience has shown that community engagement is key to successful NFT marketing

Use NFTs as an extension to already established business models. Forget about NFTs as a PFPs. It's already gone. Doing an e-com shop? Integrate the NFTs as a brand loyalty system that creates the EXPERIENCE, not points in a spreadsheet Building the real estate? Create NFTs aka investor passes with the engrained assets in there Scaling an event business? Well, make NFTs as one and only verifiable tickets, that couldn't be faked.

Web3 promises to change the transactional system as we know it by enabling users to become an active part of the value chain. NFTs, as one aspect within the decentralized Web, can act as the body to accomplish this. So if your project has the goal of actively involving your audience, and you want to use NFTs as proof of successful audience participation, rewards, or the like, then NFTs enrich your project. If NFTs don't serve a specific purpose - unless they're digital art - critically evaluate whether your project needs NFTs.

NFTs should be part of a broader plan and comprehensive strategy. If in 2023 you are trying to create an NFT collection by itself, please think again, unless you have a community of a million people waiting for your next adventure.

Create digital identities that allow users to own and control their own data and reputation. Reward users for their participation in your project with NFTs that have real-world value. Enable crowdfunding for new projects and ideas by selling NFTs that represent a share of the future profits. Foster community engagement by creating exclusive clubs and events for NFT holders or by giving them governance rights over the project. Enhance the user experience by allowing users to customize their avatars, display their collections, and interact with other NFT holders. Attract more users and investors by creating a sense of ownership, exclusivity, and social proof around your project.

Understanding your users is crucial: Are they well-versed in Web3, or a Web2 audience unfamiliar with Web3 concepts, whom you aim to gradually transition to Web3? Each scenario is valid but requires a tailored approach to effectively communicate the use of NFTs. Equally important is the decision to integrate NFT technology with your existing product (bearing in mind that the NFT is not your product). Offer tangible benefits that align closely with your brand’s narrative and offerings, like authenticity verification, gamification elements, or membership access. This approach ensures that NFTs add real value and relevance to your Web3 project.