NFT stands for Non-Fungible Token, a digital certificate of authenticity: a way to identify with certainty the originality and uniqueness of a file's content, which can therefore also be bought and sold, with certainty of ownership over a unique "virtual object." NFTs are recorded on a blockchain, that is, on digital ledgers, so that the data certifying both the asset and its ownership is stored securely, transparently and immutably. The ability to certify content is the lever that literally creates the market for digital content, both in terms of transfers of ownership and in terms of certificates supporting business activities (such as the certification of the agri-food supply chain).
The NFT market started with gaming, where a number of graphic and iconic items opened up the field. It was followed in particular by the art world, in which a number of artists began, in some cases, to replicate their works in digital format and, in others, to create original works exclusively in digital form. Next came the events and fashion industries. In the art world, digital art galleries have emerged to serve collectors with substantial budgets; event organizers have created unique, iconic tickets and other content; and fashion has created purely virtual garments and accessories (worn by avatars in the metaverse or in gaming), as well as unique pieces that can then actually be made to measure from the NFT.
NFT Platforms and Export Opportunities
Interest in digital content has literally created a market, along with the platforms for trading NFTs. Specialized marketplaces have emerged: some have gradually moved from a focus on graphic and art NFTs to covering a growing range of product categories and have effectively become generalist platforms, while others have continued to focus on a specific segment.
Among the NFT marketplaces that can today be considered generalist (or less focused than others) are OpenSea, Rarible and LooksRare. From a business perspective, they are useful for exporting large volumes and serial collections, as well as for issuing tokens for loyalty programs aimed at customers in target markets.
There are also more specialized NFT marketplaces, such as SuperRare and Nifty Gateway. These are selective-access platforms with distinctive users from different countries who have significant budgets for unique pieces or editions. They are of interest for the art market, for design and furnishings, and for high-end jewelry and fashion.
Lastly, there are players such as UNXD, a vertical marketplace for luxury: platforms specialized in the digital translation of luxury and fashion, well suited to creating "digital fashion" products and reaching the global audience interested in this segment (used, among others, by Dolce&Gabbana).
Boosting Exports Through Blockchain
In practical terms, how can an Italian company interested in exporting sell through NFT marketplaces? It is not simply a matter of listing catalog items, as one does by uploading product pages to other marketplaces, but of creating a dedicated section of the catalog featuring digital items. Examples range from iconic footwear sold to teenagers, to be worn by their avatars in the metaverse and on gaming platforms (Gucci's offerings, at just under $12, are a major draw); to digital diamonds as ornaments for smartwatches (a very interesting startup); to virtual games that come to life on smartphones in combination with the brand's wearable jewelry (GemJoy); and finally to unique virtual, and possibly also physical, editions of objects (paintings, furnishings, pens, tableware, clothing, accessories, etc.) sold on the basis of blockchain certificates of ownership.
An NFT can also be used as a virtual product that anticipates the physical one, especially for works not yet produced (artistic ceramics, paintings, furniture, wine, etc.). The model is called Redeemable (NFT + physical product): the NFT is put up for sale, and the buyer purchases it with a redemption option. If exercised, the option removes the NFT from circulation and replaces it with the physical product. This scheme allows for immediate revenue, while redemption may take place after a considerable time (I buy it today, it is mine alone with those specific characteristics, and I can redeem it even years later, as happens with fine wines).
Another highly significant use is blockchain as a means of supply chain certification. This is so highly valued that the new Made in Italy law provides specific funding for companies to build such a tool. Moreover, by creating an NFT associated with the product, it can be transferred to the buyer's wallet, attesting to its origin, materials and history, and making it possible to enhance its value in the future if resold.
Finally, it is worth mentioning token-gating, that is, selective or loyalty tokens sold to grant priority access to purchase limited collections, or collections available online for only a short time, up to their physical distribution. They are used to create an exclusive distribution channel for high-spending customers.