We're still in the early days of the NFT world, also called non-fungible tokens, and they've been blowing up the internet for the past six months. Many large companies are now spending millions creating and selling NFTs to attract their customer base and steer their attention towards a more digitalized environment and a direct-to-consumer approach, in other words, selling their unique digital collectibles online directly to the end user.

One of those is the Italian luxury sports car maker Ferrari, which has signed a multi-year contract with Velas, a Swiss tech firm, to sell exclusive digital collectibles known as NFTs (non-fungible tokens) for its fan base starting March 2022.

An NFT is a unique digital asset (like a photo, video, drawing, music, art, etc.) bought or sold using cryptocurrency (like Ethereum, Bitcoin, etc.) through specialized platforms (like Opensea and Rarible). Each token has one official owner at a time and cannot be exchanged for another NFT. An NFT can be transferred and verified by blockchain technology, thereby securely storing a record of NFT ownership and transaction history. Most NFTs are secured by the Ethereum blockchain, and no one can modify the record of ownership or copy or paste a new NFT into existence.

Ferrari has always been comfortable trying out new technologies, and today they are taking their first steps into the metaverse by partnering with Velas to create unique NFTs for the Ferrari fan base. Velas will also become a partner of Ferrari’s Formula 1 racing team.

"In addition, Velas will be the title sponsor of the Ferrari Esports Series, the online mono-brand series of the Prancing Horse, and of the esports team that will compete in the F1 Esports Series, the official digital championship competed in by all teams participating in the FIA Formula 1 World Championship," Ferrari said in a statement.

Velas added that they will be "opening a new dimension for the sport and the brand."

The Prancing Horse is known to have one of the largest communities of enthusiasts who love the brand. Although not everyone can own a Ferrari, most fans buy or collect many of the brand's products, such as T-shirts, glasses, models, etc. Therefore, it will be a new opportunity for Ferrari to connect with fans and sell them NFTs to enjoy on their own, or use them as rewards with innovative giveaways, access to exclusive events, or virtual experiences.

Another way Ferrari could benefit from this digital revolution is to sell NFTs with each product as a utility to certify and prove product ownership, or simply to show off to your friends and followers on social media.

Ferrari is a brand that thrives on scarcity; limiting the amount of its digital assets to increase value is easy. This will create immense demand and interaction from its customers, which will maximize word of mouth. However, NFTs represent a revolution in culture and modern technology that will redefine the way brands engage and do business with customers.