Artificial Intelligence (AI) has been a catalyst for innovation across various industries, including commerce. However, with the rapid advancement of AI, new challenges have emerged, particularly in the realm of authenticity and trust. As AI-generated content and products become more prevalent, it becomes increasingly difficult to distinguish between what is real and what is fake. This is where tokenization comes into play, offering a solution to the problems of fraud and counterfeit goods.
During a recent presentation, Jonathan G. Blanco, CEO of Niftmint, emphasized the growing need for tokenization in the face of AI-driven innovation. "AI has been catalyzing innovation. You'd have to have been asleep for a couple of years to not recognize this," Jonathan said. "Everything from using generative AI for your text and copywriting needs, to image designs, a lot of artists and creators are afraid of this."
Fake products, websites, content, and experiences are already a significant problem, with an estimated $1.7 trillion sold in counterfeit goods each year. Jonathan highlighted the severity of this issue, stating, "Commerce is a $6.3 trillion market just on the eCommerce side of it. And what you might not be aware of is $1.7 trillion are actually in counterfeit goods. These are things like counterfeit products - you go to a fake website, you have a fake warranty, you have a counterfeit type of experience."
To combat this issue, every product and piece of content should be tokenized, as this is the only way to understand its origin. When the originator of the content or product tokenizes it, they are essentially stamping that they created it. They can put key information into the token itself or via an application layer, which can be used for anything from authenticity to warranty and loyalty.
Jonathan explained, "When you tokenize something, essentially what you're doing is you're wrapping a layer of code around a content file. So when you wrap a layer of code around a content file, that means you can make it programmable. That means that you can put key information in there that's important to the marketer, that's important to the tech people, that's important to operations. Everything from authentication, to your warranties, to your service level information, the manufacturing details, and even marketing and loyalty type of behavior."
Niftmint, a leading provider of tokenization solutions, is at the forefront of this transformation. The company tokenizes real-world assets for brands, enabling them to embed key information into the tokenized product, such as authenticity, warranty, service plans, loyalty, and rewards. This not only provides a more complete understanding of the product and how customers interact with it but also helps to build trust and loyalty between brands and their customers.
One of the key advantages of Niftmint is its ability to abstract all the complexities of crypto and crypto wallets from the brand and their customers. This means that brands can offer digital products in the same way they would any other product, without the need for customers to navigate the intricacies of blockchain technology. By embedding directly into a brand's e-commerce platform, Niftmint ensures that the tokenization experience is seamless and native to the broader shopping experience.
As AI continues to advance, the risk of counterfeit products and experiences increases. Jonathan noted, "As we mentioned, AI rapidly accelerates this problem, and so if you don't know what is real and what is fake, that means you don't know where it was created or where that point of origin came from."
Tokenization offers a solution to this problem by allowing brands to authenticate and secure
their products while giving their customers peace of mind. By tokenizing their product inventory, brands can confirm the origin and provenance of their products, making it easier for consumers to know what is real and what is fake.
Jonathan emphasized the importance of trust and origin in the era of AI-generated content and products. "When you interact with a brand, it's all about trust, right? Ultimately, your trust lies within how you interact with the brands. And so consumers trust these brands. The brands are in fact the point of origin, and that's how we need to think about this moving forward."
In the not-too-distant future, every physical product may have a digital twin. By tokenizing this digital twin, brands can unlock new opportunities to serve their customers and build stronger relationships with them. Jonathan envisions a future where consumers will only purchase products that have been authenticated through tokenization. "If you purchase that high-value item, you purchase a Rolex watch, you purchase some jewelry, or just frankly anything that you want to make sure that you purchase what you actually purchase, it comes with a digital twin that has been authenticated by the brands, and that comes from either their wallet address or from their origination point overall."
In conclusion, AI has confirmed the need for tokenization of commerce. As AI continues to advance, it is becoming increasingly important for brands to authenticate their products and build trust with their customers. Tokenization offers a solution to this problem, allowing brands to program at the product level and embed key information into the tokenized product. With companies like Niftmint leading the way, the future of commerce looks bright, with tokenization set to play a key role in building trust and loyalty between brands and their customers.
To watch Jonathan's presentation at NFT NYC, click here:
