NFT is All Set to Become Jewelers’ Best Friend

Since the launch of cryptocurrency and blockchain, they have been capturing keen attention from the public and media. Until now, the volatile trading history of Bitcoin and the efficient applications of blockchain has been in the limelight. Despite the complicated structural setbacks, they were providing a certain level of transparency, security, and decentralization. However, since 2021, a new breed of crypto-asset has gained a huge setback. Those are NFTs (non-fungible tokens), and their market has been growing efficiently worldwide. You can say that the NFT is all set to become a best friend of jewelers. 

You must be wondering, “what in the world is NFT?

Non-fungible is something you cannot replace with any similar goods or assets. Instead, it has a computer file format that can be bought or sold with real money or cryptocurrencies, depending on the mode of payment. You can easily store an easily reproduced digital file as an NFT to find the original copy. And the NFTs are likely to be seen or read in the form of futuristic motion artworks. Further, you can get NFT in photography, art, music, memes, tweets, and video files. Basically, you can make NFTs from almost everything that is unique and easier to store digitally, but it should hold value.

However, it is impossible to exchange NFTs for anything else until the owner agrees to do a barter arrangement. Therefore, the concept is a useful approach for all creative industries, digital artists, fashion designers, and even jewelry makers. Most NFTs are a part of the Ethereum blockchain, but various blockchains have started implementing their own versions, such as Tron.

Vibrant Jewelry Prospect in the NFT World

There was a time when the only way to show the world your latest luxury purchase was by displaying it in an exhibition or on social media. However, today in 2022, your digital identity can wear the digital versions of these luxury goods in non-physical assets such as non-fungible tokens (NFTs). In between the collectibles, NFTs convert digital works of art into verifiable assets with their own space in the blockchain. 

With cryptocurrencies such as Ethereum, it is easier to buy tokens. Brands including Icecap, Asprey, etc., are also taking notice of the huge business potential of NFTs. In addition, the luxury jewelry and watch industry is working to catch the NFT phenomenon. NFTs are an ideal way to memorialize the characteristics of diamonds and their authenticity. Usually, the younger buyers give importance to the owner’s digital representations. 

NFTs are one of a kind because they usually live on the Ethereum blockchain. Jewelers considering entering the NFT space can explore different ways to tokenize or mint their jewelry or diamonds as an NFT. For example, you can create a video or GIF of your jewelry to mint as an NFT. Further, it is easier to pair digital jewelry with physical jewelry. 

NFTs are the future of jewelry collection. How?

NFTs can be considered the future of jewelry collection. It is an efficient way one can choose to protect, indemnify, and authenticate jewelry digitally. Theoretically, if a jewelry designer uses the original, crafted necklace to record the digital blueprint as an NFT, the information in the blockchain allows the person to protect his intellectual property rights. They can even add a commission to the file that you can set up for the sale and resale thing. Even if the file has a duplicate version, the data will remain recorded on the blockchain that links the original to its owner. 

NFTs are the game changers for Jewelers.

Today, jewelers worldwide, such as Icecap, Asprey, Ben Baller, etc., are extremely excited about NFT because it allows them to avoid the middleman. Traditionally, the galleries and the retailers were powerful because they made contracts with jewelers to sell their work. They used to take a vast profit from the sales in terms of commission because they were the ones to access the buyers. With the popularity of social media, most jewelry designers have fan followers, and they can directly sell their work without an intermediary. 

NFT contracts allow them to take one step further and recapture the profits from the future sale of their art. For example, I buy a piece of jewelry from a designer and sell it to someone else. The designer will get the commission for that piece even if they are not involved in the sales process. Every time the piece resells, they will get a commission for the same. 

Create an NFT out of your jewelry

Many jewelry designers struggle with NFTs, and sometimes they can’t figure out the way to create their NFT pieces. It is entirely difficult to identify what is gaining success and what is not in the NFT market, which is young and changing every day. Here are some of the tips to turn your branded necklaces or headpieces into a popular NFT – 

Use decentralized exchange

Undoubtedly, using a decentralized exchange is among the greatest methods to get attention for your NFT jewelry. However, DEXes provides you with complete control over your assets and allows you to exchange them securely with different users. 

It is impossible to trade NFTs on every NFT platform.

It is impossible to market NFTs on all NFT platforms, but you need to check the documentation for the respective platform. It provides you with insights into whether or not NFT is tradable. Etherium is again a popular cryptocurrency that you can use to manufacture NFTs. 

NFTs have a different identifier.

When creating an NFT, make sure it has a unique identity so that it does not look the same as another user’s NFT. The identification is essential for visually differentiating your NFT from anything else on the blockchain. 

You can use NFT for different purposes.

NFT has a wider use – it can be used as digital art, virtual items, and more. NFT jewelry is new to the market, but its uses will surprise everyone shortly. Because technology will rule for a long time, you should learn everything about it immediately.

Metaverse is for Retailers so far.

Metaverse is the first term coined in science fiction, which is a combination of the prefix “meta,” which means beyond, and “universe.” It refers to the shared virtual world where you can use cryptocurrency to buy and sell buildings, avatars, and even names. These environments allow you to buy goods and services, attend events, wander around, and visit buildings. 

The Metaverse combines augmented reality, virtual reality, blockchain, and social media principles to create areas for better user interaction that display the actual world. It is not a single service but a collection of services tied together, both by the companies creating roads between their services and the people beating their own paths to cover the distance from one destination to another. 

For now, brands are experimenting with Metaverse – even the retailers can use it to create awareness, engagement, loyalty, and learning. Luxury brands including Hermes, Gucci, Burberry, Dolce & Gabbana use NFTs to enhance interest. With Metaverse, the shopping experience becomes engaging and useful, allowing customers to explore and discover better. 

The NFT market has grown its popularity in terms of technology and crypto enthusiasts to something much more approachable for the average consumer. Over time, the total value of NFT and the average transaction has increased greatly. However, even the NFT transactions have grown vastly, and most purchases are made at the retail level. In the previous year, about 80% of the NFT purchases were made by retail buyers, even though there was a huge growth in high-value collectors and institutional transactions. For this well-known reason, the NFT market for retailers is promising, and it can even prove itself to be a major retail innovation in the coming years.

Here are some brands that shifted their focus towards NFT – 

Bulgari NFT Watch – The 137-year-old Italian luxury brand, Bulgari, launched its first NFT art piece while transforming its Serpenti snake into AI-designed artwork. The creation was a piece designed by Refik Anadol, the Turkish-American new media artist. The piece is designed with Bulgari’s iconic snake moving smoothly through a landscape of AI data, translated into dynamic, psychedelic 3D sculptures.

Nike’s NFT Sneakers – Nike and RTFKT have launched a virtual sneaker NFTs, and most of their “CryptoKicks” have sold for more than six figures. It is the same as the physical sneaker collection, and only the thing is they don’t get any sneakers. So instead, Nike Cyptokicks is a wider collection of NFT sneakers known as “RFTKT X Nike Dunk Genesis, preferred by the users to personalize using “skin vials” from different designers. 

Coca-Cola NFT loot box – Refreshing the entire world from the last 135 years, Coca-cola launched its first-ever Coca-cola NFT loot box on international friendship day. The purchase acquires the ownership of the NFT digital file and is provided with a royalty-free license to use, copy, and display the NFT for personal and non-commercial use. They can even resell the NFT as a digital file. 

Taco Bell sells digital Tacos as NFT – Pizza Hut, KFC, and Taco Bell are some of the world’s most well-known fast-food franchises of Yum Brands, which has implemented a strategy surrounding NFTs. Taco Bell was created in February 2021, and it has put a series of NFT gifts on sale on Rarible, a specialized digital marketplace. 

Conclusion

If you are a jeweler and want to sell your products in the NFT market, we can help you make your ideas a reality. At Sarkissian Luxury Studio, we’ve created a top-notch business model for the jewelry industry where boundless creativity and satisfying results meet our partners’ expectations. We are perfectionist CAD jewelry designers, mastered in sketching, modeling, photorealism rendering, and 360-degree animation.