You must have heard about the new digital goldmine dubbed NFT? Well, if you haven’t –
“NFT is an acronym for non-fungible token – which are some sort of digital collectibles which one can use to represent ownership of virtual items in the digital world”
NFTs over the past year and a half has garnered so much popularity since the advent of projects like Bored Ape Yacht Club and Crypto Pinks which blew up the news.
Beyond the wealth potentials of NFTs as a trending digital art piece, there are loads yet to be seen in this sector, because we are yet to scratch the surface of crypto powered technologies.
The development of NFT technology will bring about immersive and massive changes in the way we view, interact and transact in the digital space. NFTs have the potential to bring about substantial changes in our every day as these:
Ticketing And Rewards
NFTs are already being reviewed and implemented in entertainment venues around the world as in the creation of tickets or passes to events. The potential of creating a limitless number of unique NFTs will enable organizers of events like concerts and sports to create and issue NFTs as tickets for entry which can be easily verified or transferred.
The vast use of smartphones has encouraged digital ticketing and the integration of NFT technology will assist to make this process more efficient and easy to be traced.
In rewards programs set up within a company, participants can be given NFTs which can be used to track their purchases or activities within the organization for rewards purposes. Rather than issuing physical cards, NFTs can be used instead.
NFT technology as a general utility token can perform a series of specific functions like verifying membership to an exclusive club or providing access to a certain service, just like priority cards and gold cards.
This specific function has already been used in some NFT projects where they have a website or Discord group that can only be accessed after verifying ownership of an NFT from that particular collection.
The applications of this idea can be seen in some content creators offering fans exclusive access to songs if they hold an NFT released by that musician.
Patents And Intellectual Property
Given the rising rate of intellect theft and identity fraud, NFTs have proven to be ideal for tracking intellectual property (IP) and patents, by offering a way to prove ownership of any piece of content.
The data-keeping capabilities of blockchain technology allow for the entire history of a piece of IP to be tracked and timestamped, offering a way to provide undeniable ownership to any piece of art. Furthermore, the data for a patent or invention can be documented on a blockchain in form of NFT, a way to protect and certify ownership.
Real Estate And Asset Tokenization
This conceivably is one of the most pivotal applications of NFT technology minding the significance it has on several other sectors.
Aside from being an easy way to track and verify ownership of an item, the tokenization of assets will allow users/owners to manage many of the various applications in decentralized finance (Defi).
Individuals will be able to use an NFT representing the deed to their house as collateral on a Defi protocol that will enable them to obtain funds to invest elsewhere as in refinancing.
The tokenization of bigger items, such as a luxury house, hotel or yacht, also allows for fractionalized ownership.
There is indeed no end to what can be tokenized and tracked on a blockchain. Invariably all manner of assets like artworks, bonds, unique collectibles and luxury items, will one day be represented in NFT form.
As I come to a close, the NFT technology is here to disrupt the norm, thereby opening us up to a digital world of many possibilities. There is much to be written as it relates to irrevocable changes NFTs will bring to fall, however, time will make everything much clearer as we keep exploring and engaging.