Non-fungible tokens or NFTs are bits of digital files that live on the internet. The underlying technology of blockchain is what makes this possible. Hence, when it comes to NFTs going mainstream in the food industry, we need to think a little differently. Not only is food a traditional business, but the internet has proven to be a mainstay in the food industry now. This is because of the role that the internet plays in changing business models. NFTs promise to change the way the food industry operates with all its stakeholders.
NFTs are going mainstream in the food industry because of certain specific reasons. Like all market sectors, NFTs are evolving into an ecosystem of their own. A good way to map out the food ecosystem is to list down all the stakeholders in it. We start with the most obvious ones. Chefs, restaurants businesses, hospitality brands, food and beverage brands. We’ve seen venture capital-funded food delivery companies and food-tech startups. These entities standardize the food value supply chain.
The aim of today’s topic is to do a deep dive into NFTs going mainstream in the food industry. Let us begin
What are NFTs?
Non-fungible tokens or NFTs are unique pieces of digital files on the blockchain. The blockchain is a decentralized database that is not owned by any single party. In a sense, it is a fresh approach to the internet. For long, the dominant business model of the internet worked around advertising. But, NFTs and blockchain technology promise to reinvent this business model. They do this by connecting creators and consumers on a socio-economic network. This idea inverts the economic model of the world.
NFTs are going Mainstream in the Food Industry
So with that said, how do we understand the role of NFTs in the food industry? First, let us try and understand the business model of how the food industry works.
The Base of the Food Industry
We start with the raw ingredients required to make food. These raw ingredients are grown by farmers and assembled in wholesale markets. From here they make their way to towns, cities and other areas of consumption. There exists several inefficiencies in this part of the food market. But, let’s go ahead to the rest of the value chain.
Once fruits, vegetables, spices and herbs get assembled in markets, they reach places. Think homes, restaurants, hotels, offices and canteens. Also, businesses who understand the supply and demand scenarios in their respective areas. We can also think about events like conferences, meetups, weddings and birthdays. With this said, let us turn our attention to the service providers.
Service Providers run the Food Industry
In a nutshell, think about people who use methods of food preparation and techniques. Likewise, the food market includes a large section of packaged products. Think about your supermarket shelf products and how they can get used to cook meals. Likewise, cooking staples and recipes of many kinds are viral across the internet. Food is a great unifier across the world’s cultures and cuisines. Hence, food is an important part of the world’s economy.
Example of NFTs in the Food Industry
We’re going to talk about three NFT projects on food and culinary experiences.
We start with Flyfish Club. It is the world’s first private dining club where people need to buy memberships on the blockchain as NFTs. Regular membership is an asset that is tradeable on the secondary marketplace. When it comes to Food NFTs, people receive something tangible apart from the NFT art. For instance, members of the Flyfish Club NFTs get access to the Flyfish Club restaurant in New York City. Likewise, there’s access to real-life events and experiences. In a nutshell, the focus is on building a foodie community.
Another NFT project that is making waves is BurgerDAO. It is experimenting with hamburger-themed NFTs. They provide NFT holders with decision-making power across the community. For instance, BurgerDAO is a cloud internet brand with no physical location. It creates food on behalf of digital-only delivery brands. NFT holders collaborate on naming proposals for franchises, codes and access to events.
Next up there’s the Bored Breakfast Club. It is an NFT project that doubles up as a coffee subscription company. There’s access to digital artwork that depict breakfast scenes and coffee culture memorabilia. NFT holders get unique benefits. For instance, to partner with coffee roasters and ship coffee every week. Likewise, there’s a community coffee wallet. It accumulates secondary market sales royalty and profits from fresh coffee sales. The DAO functions as a coffee company. There are funds voted and deployed for packaging, roasting, and fee shipping.
There’s a sense of uniqueness about Food NFTs. This is because NFT holders get access to something tangible at the end of the day. DAOs represent the culmination of many applications in the food industry. This is an opportunity for great food experiences, cafes and restaurants is irresistible. Food has always had a keen sense of community in this regard. Food NFTs will become the next great disruption in the economics of the food business.
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This blog is for NFT beginners. This provides a short introduction and resources for additional learning and research. New investors may not know how to save their valuables securely from hackers and other malicious individuals….
- June 25, 2022
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