NFTS DIGITAL TWINS- WHAT THEY MEAN FOR A BRAND?

 

NFTs have value in their own right and cannot be copied. Then the smart contracts will in turn allow the automation of processes and operations related to the creation and exchanges of an NFT. NFTs digital twins on the other hand, are about creating a digital copy of the real world. They are virtual copies of physical products, assets, or systems that share their data with the original physical version. This can be applied to any object imaginable. Each digital twin includes the assets that represent systems, products or services, processes of firms and any other physical things that can be modeled digitally using virtual reality or 3D modeling technology. The representation is achieved by creating models based on the physical data assets.
 

The use of NFT digital twins in the garment industry in particular is changing. There are many companies that have started working on digitizing their products through the use of NFTs. This new concept has led to various innovative solutions for brands to adopt NFT for digital product data management. The digital twin is a virtual representation of a physical product that has several advantages for both product manufacturers and users.
 

Before, a product’s digital twin could only be once the physical model had been created. As of now, with NFTs, a digital twin can be made at any point in the cycle of production or sale, including before the creation of small samples that are designed to test different aspects of the final product such as fit, shape or color. It can then be used to evaluate any potential risk before manufacturing begins. This can lead many brands to improve their production decisions and choices. and more than that, NFTs digital twins provides brands with the following incentives:
 

NFTs digital twins can provide trusted service when it comes to authenticity, sustainability and users’ trust. Through digital twins, brands can reveal their commitment to transparency and sustainability practices, giving visibility to the supply chain and bringing trust in the certifications of the product. Digital twins are a powerful way for businesses to showcase the long-term value of their products and their authenticity every step of the way.
 

Talking about reliability brings up the real problem around retail or luxury fashion in general: counterfeiting. Counterfeit goods cause harm to brands, consumers and society as a whole. In fact and according to the OECD, the global trade in counterfeits is estimated at 3.3% of the world trade in 2019. So to gain credibility towards its consumers, a brand must really be careful and protect themselves against counterfeiting risks. Luxury brands, as well as the sneaker industry are known to be the first victims of it.
 

Digital Twins in the forms of NFTs come as the outcome of this trust issue. Having a certificate capable of displaying any transaction related to a product is the best to protect objects from counterfeiting. In this way, they can help brands prevent themselves from falsifications with the blockchain system. Each product can have a digital twin so that the manufacturing process is retraced and the product authenticity proven.
 

Moreover, they allow product owners to better use their commodities, while offering innovative services on top. NFTs digital twins can offer a range of new services to customers and remain relevant as the digital transformation of a company progresses. It is an opportunity for brands to establish a relationship with customers, even when they no longer own the product. Both customers and retailers can benefit from this feature. Buyers can see online what they’ve purchased or even find out where it comes from.
 

As NFTs become more prevalent and secure, digital twins are expected to enable new kinds of trade between humans and computing systems. They facilitate various applications such as scarcity and exchangeability. NFTs are designed to be secure, with the goal of adding value, not simply being a currency.
 

The emergence of digital twins has opened the door to an entire new world of exchangeable digital assets. Brands can benefit from being able to use NFTs to create new business models with proven demand. And with the right infrastructure in place, secondary sales can be done seamlessly. Digital twins provide further trustworthiness in transactions with a secure environment where buyers’ rights are ensured while still allowing the resale of goods, a feat which was not possible before. Buyers can rely on guarantee, certainty and safe transactions in case of reselling their items, knowing they are legit and have the real product, while brands can still get royalties from this resale.
 

Nike featured Cryptokicks NFTs, so digital twins real sneakers. It gives the opportunity to possess a sneakers, both physically and virtually.
 

Another great example of a digital twin could be what Gucci brand has done. They put up for sale in the metaverse game Roblox, a limited Gucci collection of bags, accessories, designed to dress the game metaverse avatars. In this Gucci virtual store, some digital twin bags were available for sale, at prices much lower than those in real life. To amply the scarcity, Gucci released a limited edition of these virtual bags for sale, which caused their price to skyrocket and resold at a higher price than the physical version.