The future of Luxury industry and NFTs and how The future of Luxury industry and NFTs and how…
The future of Luxury industry and NFTs and how
The future of Luxury industry and NFTs and how LuxFi will be involved in this shift
The importance of NFTs to Luxury industries cannot be overemphasized. The fundamental concept of NFT blends well
with that of luxury. Exclusive, rare, scarce, timeless, hence they complement each other. So what are NFTs?
Nstands for Non-fungible tokens. A non-fungible token is a cryptographic asset created using blockchain technology –
a system of recording information that makes it impossible to change or cheat the data. Something that is non-fungible
cannot be exchanged for an equal value, meaning it is a completely unique asset.
Fundamental characteristics of NFTs that make it relevant to the Luxury Industry
Scarcity is an important ingredient in the recipe that makes NFTs so attractive. NFTs provide a token with a unique
digital identity. This in turn makes a digital item valuable through verifiable scarcity. By pairing an item with an NFT, we
can know algorithmically that no additional copies of that item can ever be created.
Provenance and utility:
NFTs are now the new kind of certificates of authenticity. Instead of relying on physical certificates, NFTs serve as a
unique digital passport that certifies the authenticity of the product. From the origin to the various hand’s it passed
Tokenization has provided non-fungible tokens with an integrated certification library, offering not only proof of
ownership and history but also to serve as a permanent link to the verified documentation.
Lastly, using NFTs give items the property of permanence, similar to how Luxury is meant to be timeless and it has a
long-term appreciating investment. Think about how people hand down physical items like jewellery and watch to their
children — someday you may even see the same occur with digital items!
The fundamental concept of NFT blends well with that of luxury. Exclusive, rare, scarce, timeless — terms that define
both NFTs and our good old luxury.
There are some indicators that public interest has started to drop in NFTs, with world famous pop artist The
Weeknd raising a fairly modest $2.29m from his first NFT drop over the weekend, and CryptoPunks, among the earliest
and now most sought after NFTs, having fallen in price by roughly 40%. However, with NFTs still being relatively new, I
don’t think we’ve seen even a fraction of what is possible with these digitized tokens.
People are still willing to pay large amounts of money for NFTs across industries, and with blockchain technology
powering them, the luxury market will likely continue to embrace them, benefiting from the reassurance that each item is
truly unique and unduplicable. What’s more, as luxury marketeers we can’t ignore the exciting opportunities they offer to
engage our audience in a new, innovative way, allowing clients to interact with our brands in a way that may better suit
them. The future of NFTs in luxury looks very bright.
Now that it quite clear that the future of NFTs in luxury industries is very bright. What is the place of LuxFi in all of this?
LuxFi is a real-world luxury asset-backed NFT solution that relies on our unique algorithms. The platform acts as a
bridge between the physical luxury assets and the digital assets, fundamentally altering your belief in the possession of
the physical luxury assets. An unlimited potential of idle possessions is unlocked through decentralized financing when
applying NFT technology on each luxury asset.
An NFT marketplace is available on LuxFi, which allows the trading of luxury assets in digital form. Users will benefit
from LuxFi $LXF token advantages, like multiple incentives, benefits, and access to additional applications in our LuxFi
ecosystem. Users can also benefit from LuxFi’s exclusive retailer network while taking advantage of our decentralized
financing platform. The mission of LuxFi is to provide a new way to unleash the genuine value and increase the liquidity
of real-world luxury assets by addressing the challenges in the industry.
By Anti-counterfeiting Product Traceability, once the product is authenticated, a profile that contains metadata and
history is created, which is permanently stored on blockchain for verification and easy traceability.
The Product fingerprint technology will be also used to associate a physical item with its virtual asset on blockchain.
Aside from that, Real-world price data is retrieved from worldwide sales channels and social media platforms for the
pricing of the NFT that’s backed by real-world assets.
The project will have NFT Liquidity & Financing Network to have accessible on-demand credit lines backed by real-world
assets and DeFi network to increase liquidity and NFT Marketplace, an online marketplace for everyone to trade NFTs
that are backed by real-world luxury assets.