NFT has been making waves since last year. Cryptocurrency experts, blockchain enthusiasts, and opportunists are all intrigued and confused by the potential of NFT. While the attention focused around this phenomenon might make you think that NFTs are just another short-term mainstream, their potential to redefine digital ownership should not be overlooked.
Currently, NFT is mainly associated with digital collectibles. With astronomical digital art valuations occasionally making headlines and garnering considerable public interest, many brands were quick to seize the opportunity. Partly due to fear of missing out, many brands’ first experience with blockchain and NFT development consulting is through the release of digital collectibles. While the digital arts are undoubtedly one of the strongest areas for NFTs, their truly disruptive business potential lies in further areas.
NFTs for business owners are digital tokens that are stored in a distributed ledger, such as a blockchain, and represent ownership of physical assets in the virtual and real world. If an asset linked to the NFT changes ownership, information about this transaction is permanently recorded on the blockchain. In this way, NFT can be an effective tool for traceability, verifying authenticity and increasing traceability and traceability of any asset.
Now let’s find out which industries can benefit the most from NFT market adoption.
In short, asset tokenization can make supply chains safer, more transparent, and more efficient. With NFTs linked to real-world objects, all actions related to that asset can be securely stored on the blockchain. This allows third parties to easily access an asset’s ownership history and verify the item’s authenticity.
For example, Breitling was one of the first luxury brands to start using NFT to confirm the provenance of their watches. Every Breitling watch now comes with a unique digital passport. This allows buyers to be sure of the authenticity of the watches and to sell them more easily in the future. In essence, the NFT could become a much more convenient and efficient version of the authentication token still used by many luxury brands. Importantly, since digital passport activation is usually done through a dedicated app, brands also have access to another way to reach their customers.
Along with the record immutability offered by blockchain, NFTs can also be extremely effective in anti-counterfeiting, which is especially attractive for industries like pharmaceuticals. MediLedger, a licensed blockchain network for the pharmaceutical industry, has been fighting counterfeits and some researchers think NFTs could become an effective alternative to tracking and tracking methods. traditional.
One of the notorious downsides of conventional real estate investing is the enormous amount of paperwork required to complete a real estate transaction. With the encryption of ownership enabled by NFT, asset trading becomes much less cumbersome.
For example, holders can link NFTs to their real estate, then split them into multiple tokens and allow multiple parties to purchase portions of the property, making NFT particularly well-suited to ownership. property by part. Most importantly, these encrypted assets can also be used as collateral for loans. That is exactly what Propy, a real estate transaction management platform, and Helio Lending, a crypto lending service provider, have teamed up to achieve. In terms of macroeconomics, such initiatives allow more people to invest in real estate and access capital more easily.
Once digital tickets replace physical tickets, it doesn’t look like much in retrospect. However, both consumers and event organizers have had to learn the hard way about the legacy disadvantages of paperless ticketing.
Scalping is undoubtedly one of the most frustrating things modern consumers face when trying to keep tickets. Speculators buy large quantities of tickets for a particular event at once and then resell them at sky-high prices on the secondary market. However, there is little or no incentive for ticketing platforms to stop scaling. Some criminals go even further and sell fake digital tickets that look exactly like the real thing.
With ticket encryption, artists, organizers, and attendees can prevent fraudulent activities like scaling and make ticket sales more transparent. For example, event organizers can put a cap on ticket prices so that tickets are never sold at ridiculous prices. This effectively defeats scaling and makes the secondary market fairer. If artists choose to do so, NFT tickets can be configured to be non-transferable.
The NFT space and Web3 in general are still confusing for many people. Right now, it’s time for brands to experiment with these new concepts and technologies, and see what has the potential to bring value to them and their customers. NFT’s ability to extend real-world products and experiences into the digital realm cannot be overlooked. As businesses as well as consumers ponder these new concepts, the true potential of NFTs for businesses remains to be unleashed.