Since last year, NFTs have been making waves. Cryptocurrency experts, blockchain enthusiasts, and opportunistic investors are equally intrigued and confused about the potential of NFTs. While the attention garnered around this phenomenon may make you think that NFTs are another near-term mainstream trend, their potential to redefine digital ownership should not be overlooked.
For now, NFTs are mostly associated with digital collectibles. With astronomical assessments of digital art regularly making headlines and generating substantial public interest, many consumer brands have been quick to capitalize on the opportunity. Partly due to the fear of missing out, many brands’ first experience with blockchain and NFT development consultancy was through the launch of digital collectibles. While digital art is undeniably one of the most potent fields for NFTs, its truly disruptive commercial potential lies far beyond it.
NFTs for business owners are digital tokens that are stored on a distributed ledger, like a blockchain, and represent ownership of both virtual and real physical assets. If an NFT-linked asset changes ownership, information about this transaction is immutably recorded on the blockchain. In this way, NFTs can be an effective tool to identify the origin, validate the authenticity and increase the traceability and tracing of any asset.
Now let’s find out which industries can benefit the most from the adoption of the NFT market.
Supply chain
Simply put, asset tokenization can make supply chains more secure, transparent, and efficient. With NFTs tied to real-world objects, all actions related to these assets can be safely stored on the blockchain. This allows third parties to easily access asset ownership history and verify the authenticity of the item.
For example, Breitling was one of the first luxury brands to start using NFTs to certify the origin of their watches. Every Breitling watch now comes with a unique digital passport. This allows customers to be sure of the authenticity of the watches and to sell them more easily in the future. In essence, NFTs may become a much more convenient and effective version of the authenticity cards still used by many luxury brands. Importantly, since digital passport activation is often done through a dedicated app, brands also have access to another way to reach their customers.
With the immutability of records provided by a blockchain, NFTs can also be extremely effective in combating counterfeiting, which is especially attractive to industries like pharmaceuticals. MediLedger, a permissioned blockchain network for the pharmaceutical industry, is already tackling counterfeiting, and some researchers argue that NFTs can become an effective alternative to traditional track and trace methods.
Real estate
One of the notorious drawbacks of conventional real estate investing is the colossal amount of paperwork that goes into closing a real estate deal. With NFT-enabled property tokenization, property trading becomes much less cumbersome.
For example, owners can tie NFTs to their properties, then split them into multiple tokens and allow multiple parties to purchase parts of the property, making NFTs especially well-suited for fractional ownership. Notably, these tokenized fractions of ownership can also be used as collateral for loans. This is exactly what Propy, a real estate transaction management platform, and Helio Lending, a crypto loan provider, have partnered to achieve. In a macroeconomic sense, such initiatives allow more people to invest in real estate and more easily access capital.
Ticketing
Once digital tickets replaced physical ones, there seemed to be no point in looking back. However, both consumers and event organizers had to learn the legacy disadvantages of paperless ticketing the hard way.
Scalping is undoubtedly one of the most annoying realities modern consumers face when trying to get tickets. Scalpers buy large numbers of tickets for a specific event at once and then resell them at absurdly inflated prices on secondary markets. However, there is little to no motivation for ticketing platforms to stop speculating. Some of the crooks go further and sell fake digital tickets that look exactly like the real thing.
With the help of ticket tokenization, artists, organizers, and attendees can prevent fraudulent activities like scalping and make ticketing more transparent. For example, event organizers can set a limit on the price of a ticket, so that a ticket can never be sold at an unreasonable price. This effectively defeats scalping and makes secondary markets fairer. If artists choose to do so, NFT tickets can be set to be non-transferable.
final thoughts
The NFT space and Web3, in general, are still confusing for many. Right now, it’s time for brands to experiment with these new concepts and technologies and see what can provide value to them and their customers. The ability of NFTs to extend products and experiences from the real world into the digital realm cannot be overlooked. As both businesses and consumers understand these new concepts, the true potential of NFTs for businesses has yet to be unleashed.
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Source: vtt.edu.vn