Following the worldwide disruption in retail due to COVID-19, sales of goods are expected to grow by as much as 25% by the end of 2022.
The growth will be driven by e-commerce, with online sales totaling 23% of all sales in 2020. Meanwhile, consumer sustainability demands have driven growth in product resale or rental markets, now worth an estimated $36 billion.
In contrast, brands have expanded their reach into the brave new digital territory of the metaverse – the overlapping digital spaces in which we can buy, trade, and own physical & virtual assets.
NFTs have become a hot topic for investors, creators, musicians, and artists. The NFT wave is driving the value of various digital properties, with 2021’s first quarter seeing NFT sales reach $2 billion.
In reality, NFTs are accelerating countless digital transactions every day. At the heart of the value, we add real-world utility with the authenticity that decentralized and transparent blockchain can provide.
How Can NFTs Provide Authenticity?
The term non-fungible means something is unique or the only of its kind. And the main differentiator between an NFT and crypto assets, despite both running through blockchain technology, is that each NFT has its unique value.
A brand may create two separate NFTs of the same product, and both pieces could vary in value depending on their properties.
The authenticity of each digital asset is possible because each token has verifiable metadata and a transaction log that can help prove the ownership history. Blockchain provides security for the assets, keeping all data safe and immutable.
Sustainable. Transparent. Interactive.
The digital age and global pandemic have rendered it standard practice for consumers to purchase goods via online platforms, where they cannot physically inspect products before payment.
This has led brand owners to consider new identification methods to handle the challenges of selling their goods through online marketplaces.
Moreover, trust is considered one of the most critical factors in consumer purchasing decisions, making transparency and sustainability two of the hottest topics in the supply chain.
With an increasing number of reports of unethical labor practices, water pollution, overproduction, and microplastics, industries have come under intense scrutiny in recent years.
The environmental and social footprint of a finished product is high. Brands only have sight of those closest to them in the supply chain and even less control over how it operates, especially for the production--a hugely fragmented step often involving complex global supply chains.
It can be challenging for brands and retailers to monitor what materials end up in finished products, where and under what conditions the raw materials are sourced, and what products are made.
The Real Promise
Nexity Network uses blockchain and NFTs to guarantee authenticity and traceability, effectively integrating them into the existing practices of brands of various sizes.
We help industries to demonstrate their supply chain transparently to assure consumers of ethical and sustainable sourcing and create new interactions with communities.
Being aware of the potential risks and legal pitfalls inherent in these solutions, Nexity Network is deploying real-world strategies to combat counterfeiting in the physical and digital world.
These include implementing effective supply chain controls, maintaining strong IP protections, developing robust online monitoring programs, and collaborating with enforcement companies to identify and prosecute counterfeiters.
Press Contact
Nexity Public Relations
pr@nexitynetwork.org