Corporate NFT – The Antidote To Counterfeit Products
19 January 2022 - 7:53PM
NEWSBTC
It has long been said that imitation is the highest form of
flattery. The rapid development of technology, shortening the
production chains and product life cycle, new distribution models
developed by the world’s largest corporations, the progressive
shift of retail trade to the web, changes in consumer habits and
the ever-increasing dominance of large internet platforms, meant
that this sentence should now read: copying is the simplest form of
theft. Radosław Krzycki , COO Skey Network According to one of the
best current studies of this type, the OECD report on world trade
and counterfeit goods, in 2019 the share of counterfeit products in
global trade was 3.3% and was growing rapidly. In the European
Union itself, the share of counterfeit goods was even higher and
accounted for 6.8% of imports. Importantly, this number does not
include counterfeits produced within the EU countries and their
distribution via the Internet (so in reality it is probably much
higher). According to the estimates of the ICC – the International
Chamber of Commerce, the value of the trade in counterfeit products
will increase to almost one trillion dollars in 2022, and the
number of jobs lost will be between 4.2 and 5.4 million. More
difficult to estimate is the size of counterfeit digital goods,
which increases in direct proportion to the traffic and importance
of the global network. In 2022, piracy of music, movies, series and
software will cost up to $ 854 billion in losses. How do you stay
authentic in a world that is becoming more and more artificial and
repetitive? How to transfer quality, value and brand reputation
from the physical to the digital world without losing the
attributes of originality? The answer is provided by blockchain
technology and its latest version – NFT – (non-fungible token). In
short – it is a unique, inimitable piece of information stored in
the blockchain data chain, constituting a kind of digital “tag” and
a certificate that guarantees the originality of a non-physical
product or work. With the help of NFT tokens, we can confirm that
the product we have purchased comes from a legal source, was
produced by exactly this company or a specific artist. Today, the
real world is more and more often mixed with the digital world, and
NFTs combine both dimensions. Let’s take an example product – a bag
from a reputable manufacturer X. When you buy it in a store in a
shopping center, you get a real product with a sewn-in tag, logo
and barcode on the label. By applying the NFT technology to the
sales process, the client, when purchasing a physical product,
receives an additional, special code (e.g. QR), which gives him the
right to have an equivalent of an exemplary bag in the digital
world, with all the advantages – prestige, a certificate of
originality, a value carrier or the right to resale. What are the
advantages of this solution for companies? It is not only an
effective method of fighting counterfeit and piracy, but the first
step to the digital transformation of their brands and a smooth
transition to the world of the metaverse, as well as gaining new
markets and entering dynamically growing sales channels. An
additional advantage is building the image of the company as
modern, quickly adapting to changes and attractive for the
youngest, technologically conscious consumer segment. It is worth
emphasizing – this is not an investment dedicated only to premium
brands, as evidenced by the movements of companies such as Nike,
which bought the creator of NFTs and shoes existing only in virtual
space. The mass use of this solution is only a matter of time.
Probably in the near future, the authenticity of each product can
be confirmed on the Internet by scanning its code / label. They
will not only be a carrier of value (because who would not like to
have shoes that never deteriorate, look like new and can always be
sold), but a real source of income for their owners and creators.
An example is the popular “skins” in computer games, that is,
graphical modifications of the appearance of a character or part of
their outfit. One of these skins in CS: GO recently sold for $
150,000. What will the future hold? In Q3 2021, the NFT market
exploded to $ 10.7 billion, up from just $ 1.3 billion in Q2. The
vast majority of sales were made by NFTs from the “cheap” segment,
ie those with prices between 0-100 and 100-1000 dollars. This
confirms the thesis that the solution is universal for every
company, not only those from the premium segment. As you can see,
the entry threshold is rather low and the growth potential is very
high. In entering this new, lucrative market, the key is to choose
the right technology – the provider and type of blockchain on which
we want to base our digital products. There are still relatively
few companies with the appropriate know-how and experience in this
field. To be successful, you need to act boldly, decisively, and
most importantly – quickly, and grab the bull by the horns. Only
more and more often it turns out that the bull does not have to be
material …
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