How Cryptocurrency and NFT Technology Will Affect Your Business

Web3 is no longer a speculative progression of Web2.0; it is now taking form and becoming a reality as you read this. Experts describe Web3 as a set of open technologies and protocols, including Blockchain (including Crypto and NFTs), that facilitate the usage of decentralized data, knowledge, and value in a natively trustworthy manner. In other words, Web3 will be constructed on a foundation of cryptocurrencies and non-fungible tokens in order to facilitate the exchange of value — both as cash and as content — between the producers of content, the platforms that will host that content, and the final consumers of that content.

However, what is meant by “content”? Today, “content” encompasses more than simply pet photos and cooking videos. According to the definition, content is any and all data shared from one entity to another. This includes cat pictures (which, as we all know, are the bedrock of social media), third party apps (such as games, which is what the original FarmVille was), videos, music, stories, status updates, and similar data. But it is also much, much more: data captured by content platforms whenever a user watches a video, “likes” a post, or spends a few seconds longer on particular images can be classified as content, as that user’s input, however minute, directly influences the algorithms that determine what content will be shown more (or less) to users with similar profiles.

All of this data has business intelligence value, and consequently monetary worth, since it will be recorded, kept, processed, and repackaged into a marketable product more readily in Web3 by leveraging NFTs (Non-Fungible Token). The whole Web history of a single user may be collected and maintained securely on an NFT — a type of long-term file containing every submitted image, video, message, remark, click, like, and watch, among others — while on different Web sites and content platforms. In the ideal, utopian Web3 vision, the user would have complete command and authority over the data stored in their NFT.

Revolutionary is the fact that all of this data and content can now be precisely and fairly recorded using NFTs. On an NFT, the user who really develops the material, whether it is a single individual “liking” a photograph or a third-party app developer building a game, can monitor and control their work. Now, if this material can be traced, it may be transferred for value on purpose. This value may vary from monetary compensation (e.g., $4.99 per month to play a game or $0.0001 per “click” on a social networking site) to access to advantages or privileges (i.e., receive permission to access some of the user data from users playing your game, or gain access to VIP social media groups if you spend enough time engaging with posts, etc.). The crucial aspect is that enterprises may now offer to trade value for the content and data by recording it all in a secure, immutable, traceable, and unique record—a NFT.

The commercial center for data

It is now much more appealing for users to voluntarily share their content and data because businesses, such as social media and content platforms, have the ability to offer users monetary compensation (or special rights or access) in exchange for the right to use some or all of the users’ content and data. This makes it much more likely that users will share their content and data. Social media and content platforms are now in a position to repackage user data and sell it on data markets as a result of an increase in user data that is voluntarily being supplied by users.

Take, for instance: A significant clothing designer, such as LVMH, is now working on their Spring catalog for the year after next. They are interested in learning what the most popular topics are that people in their target demographic are discussing or looking at this summer. They next go to a marketplace that sells data and make an open offer to purchase a data collection that describes the photographs or videos that members of their target demographic have watched. People between the ages of 22 and 30, residing in large metropolitan regions with populations of 10 million or more, in the countries in which this fashion designer has outlets, who watched videos or photographs of apparel throughout the summer months would be a good example of this demographic. The data, which is being packaged and sold in the data marketplace (with permission of the users creating that data) by either a social media platform (such as Facebook or Meta), a video content platform (such as TikTok or YouTube), or a picture content platform (such as Instagram), can be priced fairly (with bid / ask pricing), and the fashion designer can purchase it. Now, the data may support the hypothesis that videos and images that feature purple polka-dots receive the most likes and views, and are trending higher and higher through the summer. As a result, they may have designed a new product line for their spring catalog that features the soon-to-be hottest fashion of purple polka-dots.

Modifying the ways in which companies conduct their operations

Throughout the whole process of value creation, each participant gets fairly paid for their contribution, no matter how little it may be (for example, a “click” or a “like” on an image), as described in the scenario that was just presented. The user has maintained the right to sell their data or content, the platform company is being compensated for providing the content hosting platform as well as gathering and packaging the data, and the buyer of the data set (in this case, the fashion designer) is gaining value from having access to the most accurate and insightful data available to plan their business strategy. 

The underlying technology of the blockchain, which is also known as the NFT, is the fundamental technology that enables the creation of records that are accurate, secure, unchangeable, traceable, and unique, as well as the capacity to assign fair value and remuneration. Additionally, the increased usage of non-fiat currencies (NFTs) will coincide with the increased use of virtual currencies (cryptocurrencies). Forgive the pun, but non-fungible tokens (NFTs) may be thought of as the “other side of the coin” when it comes to cryptocurrencies. The decentralized and safe exchange of digital money is made possible by cryptocurrencies, while the decentralized and secure exchange of digital content is made possible by non-fiat currencies (NFTs).

As businesses come to the realization that any digital information, from cat pictures to music to pharmaceutical drug formulations, can be securely recorded and exchanged on an NFT, you can anticipate to see a rapid rise in the use of NFTs (beyond the hype of NFT art, which is an interesting proof of concept use case for NFTs). This will lead to a rapid rise in the use of NFTs. To match the growth of NFTs, the value of cryptocurrencies will increase as well since this is the most logical and user-friendly way to trade digital currency for digital goods.

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