Author: Scott Duke Kominers and Steve Kaczynski
Source:a16z
< span style="font-size: 14px;">Translation: Shan Oppa, Golden Finance
Our new book "All Things Pass : How NFTs and Web3 will change the way we buy, sell, and createOne of our goals is to unleash the power of non-fungible tokens (NFTs) for commerce. National and international brands are already using NFTs in some consumer-facing campaigns, but we think many more brands could benefit from this technology. We don’t want local businesses to be left behind; NFTs also provide them with the opportunity to engage fans and communities.
To do this, we created a blueprint for builders—everyone from startup team members to small business managers to big brand executives. We describe a five-step framework for success: theNFT Ladder .
Ownership – This isweb3’s The stakes are high, but it's fundamental. NFTs leverage blockchain to create digital assets whose ownership can be defined and verified independently of any platform or intermediary. This helps create markets for goods for which ownership is difficult or impossible to define, including the now-ubiquitous digital images, but also game items, event tickets, and even health data. This means that NFTs can outlive their creators and provide people with a level of personal control just like they are used to with physical assets: the wallet that owns the NFT can decide which platforms can access it and how it can be used it. For example, if you want to transfer your NFT art collection from one platform to another, all you have to do is disconnect your digital wallet from the first platform and connect it to the new one. This gives people a greater degree of psychological ownership of their digital assets. It starts a powerful incentive loop: when you are the owner of a digital asset, you are incentivized to help build a relevant brand.
Utility - Adding functionality beyond ownership to NFTs can drive further adoption value. Many tokens have default functions, such as displaying images, providing access to events, or enhancing the gameplay of online games. But that's just the beginning: Because NFTs are embedded in software, new features can be added over time. Online gaming NFTs might also grant access to Discord servers hosting gaming discussions, or unlock subscriptions to fan publications. Utility reinforces the value people place on the NFT and encourages repeated interactions with the asset, which in turn can inspire brand attachment. Crucially, with NFTs on public blockchains, third parties can introduce utility as easily as the original creators. Combined with the token’s cross-platform interoperability, this means a wide variety of contributors can inject ongoing value into NFTs across a wide range of online and even offline environments. A person can use digital avatars on multiple Metaverse platforms simultaneously without the services needing to interact directly with the creator or each other - just like a person can wear a piece of clothing anywhere without brand approval . Restaurants can airdrop coupons for local sports games to “NFTickets” holders. The studio’s new “Morlocks vs. Mages” role-playing game could target people who already hold Witcher NFTs. More broadly, NFT projects can be launched by leveraging a network of people who can identify various interests on-chain. (Author's Note: We don't know that the Morlocks vs. Mages game actually exists, but if it does, then at least Scott will play it!)
Identity - The combination of ownership and ongoing utility enables holders to gain a sense of personal value from their NFTs, and ultimately develop a sense of identity around them. Interoperability plays an important role here: people can easily display a given NFT (or, more accurately, its associated metadata or media) on different platforms as part of their public identity. Instead, as more and more people begin to associate their digital identity with their digital wallets, it will be even more important for brands to issue NFTs to anchor their relationship in people’s online experiences. Specifically, identity is a big reason why PFP (“ picture for or p heaven ” or “ profile picture ” ) NFTs are taking off. These tokens are designed to allow people to express their imaginative identities and connect with others who share similar self-image and aspirations. (More on that next.) But identities can apply to any NFT category. Think of a favorite POAP ("Proof of Attendance Protocol") NFT to commemorate an event, a digital "I Voted" sticker, or even an NFT attached to a slideshow you're particularly proud of. Over time, we expect to see many NFTs establishing personal ownership and identity around personal data, such as academic qualifications and health records.
Community - NFT has "network superpowers": every token Implicitly links holders together, forming a network of people with common interests and experiences. It's like the type of network effects we're used to in web2, except here the value is generated by the asset rather than the platform. NFTs enable people to find their tribe and then provide a basis for their collaboration. The more prominent an NFT becomes in different contexts, the stronger the associated networks will become. Additionally, NFTs allow the holder to have a two-way conversation with the brand. Some NFTs grant governance rights, as in the context of a DAO or decentralized autonomous organization. But even without granting these rights, NFTs can still anchor a community of brand supporters and give them ownership of the brand’s assets. We describe fandom in the context of NFTs as having a “semi-permeable membrane”: ideas and experiments can filter out from NFT holders, and the brand itself can integrate the most successful ideas and experiments.
Evolution -All of this combined makes for a powerful digital brand Construction package. Through NFTs, a creator, company, or cause can build a community whose members personally identify with the brand and are incentivized and empowered to contribute to it. Connecting these people to each other and the brand can lead them to evolve in unexpected and exciting ways.
The summary here only scratches the surface. The result is that as projects climb the NFT ladder, they have the potential to elevate ordinary consumer interactions into multifaceted community experiences. As a result, we expect NFTs to become ubiquitous in both online and offline applications.
As we explained at the end of Chapter 1:
NFT can Images turn into event tickets, and event tickets turn into brand anchors. They will launch the next generation of customer loyalty programs, creating structures that benefit businesses and consumers in new ways. They will change how we manage work history and health data. They can transform simply owning a product into a close-knit community experience.
NFT is all tokens.