Creating new experiential value through NFT and space: A space creation company takes on an NFT project

1: What are NFTs?

NFT (Non-Fungible Token) is a technology that allows digital data such as art, music, and game items to be recorded with a certificate of ownership on the blockchain, proving that they are unique.

NFTs quickly attracted a lot of attention when NFT art was traded for the equivalent of 7.5 billion yen in Japanese yen around 2021. Since then, when you think of NFTs, you may have a strong image of NFT art, but in fact, NFTs are much more than that.

The features of NFTs (e.g. proof that digital data is unique, etc.) are highly versatile, and these features have already been utilized in a variety of areas. For example, they are being used in a variety of ways, such as event tickets with multiple values (Example 1) and digital resident cards aimed at increasing the number of people connected to a local area (Example 2).

Example 1: Event tickets: Recochoku Ticket (Recochoku Co., Ltd.)

Source: https://prtimes.jp/main/html/rd/p/000001542.000002747.html

The ticket itself is an NFT, and can be owned like a paper ticket and treated like an electronic ticket. In addition to functioning as an admission ticket to an event, it can also provide an exclusive experience to the owner after the event has ended, and can be stored semi-permanently as proof of participation in the event.
Official website: https://recochoku.jp/ch/web3/nft-ticket/

In this case, the NFT-ized tickets demonstrate value beyond the traditional ticketing function, providing users with various added value such as proof of participation and experiences exclusive to owners. Because the range of digital data that can be combined with NFTs is extremely wide, we believe there is ample room for further evolution in the creation of new experiential value by converting part of a traditional system into NFT.

Case 2: Digital resident card: Nishikigoi NFT (Yamakoshi Village, Niigata Prefecture)
This project was launched by Yamakoshi Village, a marginal village with a population of less than 800 people, with the aim of increasing the number of people connected to it, including in the digital space. By holding the issued NFTs, you can become a digital resident of Yamakoshi Village.

“This NFT is a digital art NFT with a Nishikigoi motif, and also serves as a digital resident card. This NFT project is officially recognized by Nagaoka City, Niigata Prefecture.
In order to preserve the identity of Yamakoshi, we aim to increase the number of people involved in the digital space, not limited to the permanent population. By creating the concept of "digital villagers" and distributing this through NFT digital art, we hope to open up the way people relate to the region not only domestically but also to the world, and to create opportunities for encounters with many people.
Official website: https://nishikigoinft.com/ja

2: Can we use NFTs to make the space more interesting?

"Perhaps by utilizing NFTs and combining them effectively with real spaces, we can create new experiential value for the space. Isn't it possible to explore new possibilities that are only possible at NOMURA Co., Ltd., which has strengths in spatial design?"
With this realization, NOMURA Co., Ltd., Ltd. formed a task force team to carry out research and development on the theme of NFT x space, and began working on turning it into a project. Incidentally, I am one of the members. In this article, I would like to talk about the possibilities for creating new experiences using NFTs as envisioned by NOMURA Co., Ltd., and the trials being conducted toward that goal.

3: Creating new experiential value using NFTs

Now, let’s consider how NFTs can be used to create new experiential value in the following three steps.
Given its high versatility, there are many conceivable spaces where NFTs could be used to enhance the experiential value of the space, but as an example here, we have expanded on the idea by assuming that the space is a sake brewery and the experience in the space is a brewing experience.
When using NFTs as a means, the more appealing the content itself is (= the more fans and the more passionate it is), the better the compatibility and the more powerful it will be. Therefore, we use the example of a sake brewing experience at a sake brewery as a case where there are fans of the content (sake) all over the country for one space (sake brewery).

Step 1: Creating experiences before and after the spatial experience

Of course, the space can only be experienced by visiting it in person, but by creating an NFT experience before and after the experience, it is possible to increase anticipation for the space and encourage repeat visits.
​Creating a sense of anticipation before visiting a space: By distributing participation tickets and limited content converted into NFTs before visiting a space, NFTs may be able to create a sense of excitement that people have before actually visiting the real space.
​Encouraging repeat visits after visiting the space: If the participation ticket is converted into an NFT, information such as when and where the person had the experience can be linked to the individual. Therefore, for example, if information such as tastings at a sake brewery is stored, it will be possible to provide a service that will provide high customer satisfaction, such as delivering sake that is perfectly suited to the individual's tastes, and create an attractive experience that will encourage repeat visits.

Step 2: Expanding the experience in space

We believe that NFTs can also be used to expand the experience of the space itself in a more compelling way.
Rewarding experiences and inducing the next experience: For example, you could get an NFT for each experience in a space, meaning that NFTs could be given as an experience reward. If the experience of acquiring NFTs were made into a collectible one, like a stamp rally, it would create a feeling of "I want to collect more NFTs! I want to complete the collection!", which could lead to further experiences.
Example: Osaka Loop Line NFT Station Stamp Rally (West Japan Railway Company)

Source: https://prtimes.jp/main/html/rd/p/000000074.000046288.html

The campaign was launched to coincide with the start of operation of the Osaka-Kansai Expo-wrapped trains on the Osaka Loop Line and JR Yumesaki Line, as part of efforts to build momentum for the Expo. By scanning the QR codes installed inside the Osaka-Kansai Expo-wrapped trains and at stations along the line, you can obtain NFT station stamps. Each stamp is drawn by a wide variety of illustrators, and the design makes you want to collect them as you visit the locations where you can obtain them.
Official website: https://www.jr-odekake.net/navi/nft-stamprally/

Membership status function and creating a sense of exclusivity: As mentioned above, NFTs can be linked to various information on an individual basis. Therefore, status can be assigned based on the number of NFTs held and the period of holding. For example, status can be flexibly determined based on how many times a person visited the space (visited a sake brewery) and how much they experienced (brewing experience, tasting, purchasing souvenirs, etc.). This makes it possible to hold special VIP events for customers with high status (= high engagement with the space).

Step 3: Space-based network

It is also possible to build a network of NFT holders with the space at its core.
Creating communities: While there are already communities online that relate to a space on traditional social media platforms, the use of NFTs makes it possible to visualize engagement with a space, allowing holders to connect with more passionate fans in communities.
Launch of a project: By utilizing NFTs, it is possible to create a scheme where participants can raise funds from project participants, as in crowdfunding, and decide the project's management policy among themselves. The difference from crowdfunding is that voting rights can be given according to the number of NFTs held (i.e. how much funding has been provided to the project). For example, it is possible for the holders of NFTs issued by a sake brewery (fans) to decide the taste of the sake to be produced in the next season. It is also possible to promote a project that respects the opinions of people who understand the good points of the brewery (people who hold more NFTs).
By the way, (roughly speaking) an organization that makes decisions in a decentralized manner across the entire community rather than top-down and drives a project like this is called a DAO.

*DAO: Abbreviation for Decentralized Autonomous Organization

In this way, the experiential value of space has great potential to evolve through NFTs, and as NOMURA Co., Ltd., a group of professionals in spatial experiences, we believe there is no reason not to challenge this possibility.
NOMURA Co., Ltd. 's scope of work is mainly the design of spatial experiences, but from now on, we would like to aim to become a general producer who plans the entire "spatial experience + experience expanded by NFT." In other words, our goal is to plan a series of experience flows together with the space, including before the space is experienced and the creation of a community afterwards, and to explore the possibilities of new experiences that will enhance the experiential value of the space for customers.

4: First step! Selling NFT graphics

* A selection of 130 types of NFT "flower" graphics

Now, as the first step of NOMURA Co., Ltd. 's efforts in the NFT field, the company began selling its own NFT graphic works in July 2023. 130 types of "flower" graphics created to commemorate the 130th anniversary of NOMURA Co., Ltd. founding have been converted into NFTs and are being offered for sale at NOMURA Co., Ltd. store on Adam byGMO.

Adam byGMO NOMURA Co., Ltd., Ltd. store page (link to external site)
https://adam.jp/stores/nft_nomura-g_jp

＜About the "Flower" Graphics Commemorating the 130th Anniversary of NOMURA Co., Ltd. Founding＞
Concept: "A bouquet of thank you flowers"
We have continued to sow various "seeds of happiness" in society through our spaces. With the colorful flowers that have bloomed and are full of individuality, we convey our gratitude to our customers and people all over the world who have supported us until now.
As part of the key visual and anniversary logo mark expansion, we have renewed the business cards of NOMURA GROUP employees. In commemoration of our 130th anniversary, we have 130 types of flower designs on the back that express diverse personalities. The design was done by our visual design team "IVD".

https://www.nomurakougei.co.jp/news/page/4351/
IVD公式instagram https://www.instagram.com/ivd_official/

Topic: Won 1st place in the art category!
Sales began in July 2023, and in September 2023, it achieved the number one monthly sales ranking in the art category! I think promotional measures utilizing social media were also successful.

In aiming to create new spatial experiences using NFTs and implementing them in the world, I felt that the most important thing was speedy trial and error. This is because technological advances in the digital realm are remarkable, and if you don't have the attitude of trying things out lightly and with trial and error as a given, rather than settling down and steadily executing on a long-term plan, you will be left behind by the current.

NFTs are still in their infancy, and we believe their potential is limitless. NOMURA Co., Ltd. Ltd. will continue to explore ways to expand new spatial experiences using NFTs.

If you want to join us in creating new and interesting experiences, we look forward to hearing from you!