NFT and Jewellery: Paving Way For New Avenues

NFT is a new technology that is being used to certify the ownership and authenticity of luxury jewellery. An NFT is a unique digital asset stored on a blockchain representing ownership of a specific item or content. 

• In the case of luxury jewellery, an NFT can be used to verify a piece’s authenticity, provenance, and ownership, making it easier to track and transfer ownership while adding a layer of security.
• The non-fungible tokens allow luxury jewellery brands to showcase their collections and reach a wider audience.
• By using NFTs, brands can digitise their collections and allow customers to interact with them innovatively. This can include virtual try-ons, augmented reality experiences, and more.
• It allows new consumers to keep track of their products, as each NFT is linked to a unique item, making it easier to keep track of inventory. 
• It also provides a secure platform for transactions, as NFTs use blockchain technology, which is highly safe and resistant to hacking.

Luxury Brands In The NFT Space

As the use of NFT technology in the luxury jewellery industry continues to grow, more brands will likely embrace this innovation and offer their customers new and exciting ways to interact with their collections. One of the first luxury jewellery brands to enter the NFT space was Cartier, who recently launched an NFT collection called “Love bridge.” This collection features a range of digital love tokens that can be bought, sold and traded as NFTs. Each token is unique and has been verified for authenticity using blockchain technology, giving buyers peace of mind that their purchase is genuine. 

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— Tiffany & Co. (@TiffanyAndCo) July 31, 2022

Tiffany & Co is also among the luxury jewellery brands that have entered the NFT space. The brand recently launched an NFT collection called “Tiffany True”, which features a range of digital diamonds that can be used to create unique jewellery pieces. In India, too, the race to jump on the metaverse and NFT bandwagon translated into jewellery brand Tanishq’s foray into the space. They launched their wedding collection, ‘Romance of Polki’, in the 3D display zones on the metaverse, allowing viewers to try on the collection in 3D. Roma Narsinghani, a conceptual jewellery designer who runs a brand under her name, also created wearable NFTs – you could use her pieces to dress up your avatar in the digital world. 

NFTs bolster the value and authenticity of a luxury purchase, especially for diamond jewellery, since this precious stone is not tradeable and loses value right from the moment of purchase. And the benefit of NFTs is not restricted to the digital world. Payal Shah, the founder of international fine jewellery brand L’Dezen, collaborated with Digital Twin, an NFT marketplace, to launch one-of-a-kind digi-physical diamond NFT earrings. The NFT was asset-backed, i.e. the collector could redeem their NFT to acquire the physical ‘Limitless’ earrings to wear in real life. 

The Road Ahead

Despite the many benefits of NFTs, there are still some challenges that luxury jewellery brands need to overcome. One of the biggest challenges is the need for more understanding of NFTs among the general public, as many people still need to learn about the technology and how it works. To overcome this challenge, luxury jewellery brands must educate their customers and provide clear and concise information about how NFTs work and what they offer.