The internet today, is afloat with buzzwords such as NFT, Tokenization, Crypto, etc. But many brands are still in the haze about this topic and its correct usage.
NFTs (Non-Fungible Tokens) are non-interchangeable units of data that are stored on a blockchain. It can be defined as a type of digital ledger that supports digital files such as audio, video, and images.
With online communities becoming the spine of business operations, brands are leveraging NFTs to increase community engagement and participation. However, as much as the topic is being talked about, it’s still an unexplored territory for many.
Let’s dive right into discovering more about the application of NFTs in communities and decoding how it impacts the success of your community.
NFT + Communities: Understanding the ‘What’
NFT in communities can be defined as a certain group of members/customers who actively educate, collect, trade, and sell NFTs via online communities.
In addition to the many activities that community members participate in, education about NFTs can be an incentive for them to engage. Not only this, the application of NFTs in communities can enable brands to garner more customers and boost brand awareness.
Since NFT is the most searched topic today, it can prove to be a starting point for boosting community interactions and knowledge amongst community members.
The Application of NFTs in Communities and its Benefits
Now that we’ve touched base on what NFTs are and how brands are leveraging them to their advantage, let’s deep dive into the application of NFTs in communities and their advantages for brands.
Personalization and Privacy
Users, today, want to control their personal data on their own. And that’s exactly what NFTs offer.
With NFTs, users can be anonymous or visible as per their choice. They have the liberty to share or disclose any kind of information or data that they want, at any time.
Since blockchain is a distributed digital library/ledger that stores data in multiple spaces globally, organizations are less prone to data thefts, hacking, data loss, etc.
Gamification is one of the most crucial features that make communities dynamic and cutting-edge. It is a proven way to increase engagement in the community and get your customers to participate by rewarding them.
For a community manager, gamification was limited to badges, avatars, and leaderboards. However, NFTs are an extension to this and take gamification up a notch.
With NFTs, community managers can offer tangible incentives to their customers. On achieving a milestone in the community, community managers can reward their members with long-term or short-term NFTs. Not only will this spearhead community participation, but it will also evoke the interest of your community members and keep them hooked.
NFTs, when implemented within communities, can prove to be a game-changer for businesses. Communities offer a safe space for two-way knowledge exchange, and give brands the opportunity to explore more about NFTs and tokenization and reap tangible outcomes. But before diving into NFTs, brands must ensure that they understand the nitty-gritty of crypto communities and strategize to achieve results.
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