Non-fungible tokens, or NFT, have been making waves in the world of digital art and collectibles. And now, it looks like they’re about to make their mark on the world of fashion as well. In recent months, a number of brands and designers have begun experimenting with NFTs, releasing limited-edition collections and one-of-a-kind items that can be bought, sold, or traded like any other cryptocurrency.
So far, the most popular use case for NFTs in fashion has been streetwear. This is likely due to the fact that streetwear is already a highly collectible form of fashion, with limited-edition items often selling for thousands of dollars on resale sites like StockX and Grailed. However, there are a few key ways that NFTs could potentially change the game when it comes to streetwear.
1) Increased Scarcity
One of the most important functions of an NFT is that it can be used to create scarcity around a particular item. Unlike a physical item which can be reproduced an infinite number of times, each NFT is unique and can only ever exist in one place at one time. This makes them perfect for creating limited-edition items and one-of-a-kind pieces that are sure to be coveted by collectors.
2) programmable Ownership
Another major advantage of using NFTs for fashion is that they offer programmable ownership. This means that designers can embed certain restrictions or “rules” into an NFT that determine who can own or trade it. For example, a designer could release a pair of sneakers as an NFT and program it such that only people who have purchased a certain amount of their clothing in the past year are eligible to buy them. Or, they could release a piece of clothing that can only be traded amongst a certain group of people (e.g., celebrities, influencers, etc.). This type of programmable ownership opens up all sorts of possibilities for create exclusive, invite-only communities around particular brands or items.
3) new Revenue Streams
Perhaps the most exciting potential advantage of using NFTs for fashion is that they offer new revenue streams for both brands and consumers. For brands, NFTs provide a way to sell digital versions of their products (e.g., clothes, shoes, accessories) that can be accessed and used by anyone with an internet connection. These digital items can then be bought, sold, or traded on secondary markets like OpenSea and Rarible—providing brands with a whole new source of revenue. For consumers, meanwhile, NFTs offer a way to make money from their collection by selling or trading items on these same secondary markets. In this way, NFTs have the potential to democratize the world of fashion by giving everyone—not just wealthy investors—the opportunity to profit from the resell market.
Conclusion:
It’s still early days yet, but there’s no doubt that NFTs are going to have a big impact on the world of fashion—particularly streetwear—in the years to come. With their ability to create scarcity around particular items and open up new revenue streams for both brands and consumers alike, there’s no telling what sorts of innovation we’ll see in the space as more designers begin experiment with this new technology. So keep your eyes peeled—the future of fashion is looking very bright indeed!