From 21st June, eBay acquired KnownOrigin, one of the world’s first and largest NFT Marketplaces.
Already embracing innovation by incorporating technologies such as AI and machine translation, eBay is known for adapting to consumer needs and trends.
Does this mean that NFT marketplaces are the future of e-commerce? Let’s take a deeper look into NFTs and what this could mean for online retailers and artists.
What Are NFTs?
NFT stands for Non-fungible Token meaning it cannot be substituted for something of equal value or utility. Completely unique and irreplaceable, purchasing NFTs give you complete ownership of the work; artists may still retain copyright and reproductions rights.
Whether it’s an audio, video or digital art file, NFTs have been designed to give artists a platform where they can sell their art and where buyers can support them. Most NFTs are part of a blockchain which is a way of storing data without having to rely on a someone else for security.
NFT Marketplaces vs. E-commerce Retailers
When you compare NFT marketplaces with traditional e-commerce retailers, the one main difference is that there is no middleman with NFT marketplaces.
The selling and buying of products through an online retailer involves multiple 3rd party agencies. This means the commission arrangements are skewed and sellers could lose out. NFT marketplaces do not involve any third parties in their operations and sellers are confident in their sales.
However, NFTs will never completely replace physical products and shouldn’t be seen as a threat to e-commerce retailers. The online retail sector doesn’t completely consist of tangible products anyway; software solutions, downloadable content and e-books are just a few examples of non-tangible products sold through e-commerce platforms.
OpenSea, Nifty Gateway and, of course, KnownOrigin are specific NFT marketplaces that have opened up and this list continues to grow along with the trend.
Why Are NFTs Becoming So Popular?
Unfortunately, although e-commerce platforms provide convenience for the general shopper, they do not deliver on speed. Once you purchase an item, you have to wait for it to arrive. You may get the speed with high street shopping, but you do not get the convenience. The solution: NFT marketplaces. The NFT version of the purchased asset is provided immediately, so the customer is satisfied straight away.
Digitised platforms and cryptocurrency are also becoming a lot more popular nowadays which is leading consumers towards this type of shopping experience. In fact, combining both e-commerce platforms with NFTs has the potential to bring a lot more value to traditional platforms. So much so, that big brands are incorporating it within their e-commerce platform, like Nike.
What Does the Future of E-commerce Look Like?
The sale of tangible products, whether that be online or in-store, will never be eliminated. Yet, it is predicted the collaboration between digital assets and e-commerce platforms will become stronger and more popular. eBay’s acquisition is a definite sign that NFT marketplaces are here to stay.
With that in mind, it is recommended that consumers and retailers become familiar with this emerging trend. Blockchain technology and NFT marketplaces will be present in our futures so, by looking into them now, you will be able to reap the advantages later.
If you would like to optimise your current online platform or would like to design a new one for your business, get in touch with us on our contact page. Alternatively, you can call us on 01473 934050 or email us at firstname.lastname@example.org. Interested to find out more about Logic Design? Visit our homepage or see our services.