Beyond Mere Pictures: How NFTs Can Transform The Traditional Industries

More Facts about NFTs that You should Know about

It’s a little late in the year 2022 — Q4 and by now, many of us must have been familiar with what an NFT is all about. Despite the fact that NFTs rose to prominence last year, hitting several high figures and values, it is interesting to know that NFTs remain very much relevant up to this day.

What do I mean?

Well, last year, the rave and idea of NFTs was more centered on digital art pieces but right now, it has seen a much more creative evolution. This evolution has seen it become more adopted by several traditional sectors while disrupting them.

Now, whenever you come across or hear of the word NFT, digital art shouldn’t be the only thing that comes to mind anymore. In this article, we will delve into what NFT has transitioned into and how it is transforming traditional industries. Read along.

What is NFT: Quick Recap

NFT or (Non-fungible token) is a cryptographic asset on a blockchain with unique identification codes and metadata that are linked to digital (and sometimes physical) content. It provides proof of ownership and is distinguished from each other.

In other words, NFTs are not interchangeable.

NFTs: More to It than Just Digital Art

Just as mentioned above, NFTs were popularly known and associated with digital art. When there is a mention of NFTs, then people automatically relate it with art and pictures.

By the way, the art world was the first to enjoy the huge benefits attached to NFTs. For example, artists can get paid (royalties) every time their artwork changes hands, not simply once when they sell it initially

At one point, NFT arts were seeing an astronomical rise in value where prices were flying in millions of dollars. According to market tracker DappRadar, sales of NFTs reached almost $25 billion in 2021.

Now, things are changing, and the world is starting to realize the full potential of NFTs. The concept behind NFT technology can be used across multiple industries and diverse business models to create new opportunities for businesses that never existed before.

Little wonder why the traditional industries are trooping in.

NFTs: Disrupting The Traditional Industries

The possibilities with NFTs are virtually endless but let’s take a look at the adoption of NFTs by mainstream industries.

Real Estate

Knowing a property’s size, location, price, and if it has any outstanding debts or legal claims is crucial when purchasing a home or piece of land. Thanks to an NFT having an immutable record of all the property information, NFTs could play a crucial role in the easy transfer of land deeds and in establishing proof of ownership.

To avoid future misunderstandings and disputes, real estate papers including ownership deeds and other buyer-seller agreements might be turned into NFTs. Imagine having complete knowledge of the home you want to purchase, including information on its construction date, previous owners, when it was last remodeled, and other pertinent facts.

Digital Identity

NFTs have the ability to offer a new degree of security and identification to establish one’s identity online in the data-driven world we live in today.

NFTs improve the identity and security of both public and private blockchain databases by adding digital signatures to each asset or transaction using smart encryption and validation technology. Hackers are unable to copy and connect to other virtual assets because of this.

Supply Chain

The usage of NFTs makes it possible to represent unique items as “tokens” on the blockchain, making it simple to track products from their point of origin to their destination. Since NFTs are maintained on the blockchain, no one can tamper with them, helping to combat the issue of counterfeiting across the supply chain by monitoring a product’s metadata to determine its validity and quality.

NFTs, for instance, can be used to determine if a luxury shoe was produced at an Italian shoemaking facility. Track it after that as it moves along the supply chain.

Intellectual Property

It can be challenging to manage traditional intellectual property tools like copyrights and trademarks, but if you are the owner of a piece of content’s NFT, you can assert ownership of it.

The owner of an NFT can easily establish their ownership of the asset at any time and from any location thanks to the immutable information included in a digital token. By validating and securing their patents through NFTs, you can similarly protect your concept or assert ownership of innovation.

Ticketing

Blockchain specialists are thinking about using NFTs as a link between physical & digital ticketing for events like concerts, sporting events, and even aircraft tickets because they offer a unique type of digital signature that cannot be copied.

NFTs can be a viable alternative to physical stubs by replacing them with a trackable, digital ticket that can be accessed by a mobile phone or any other device that is non-fungible and easily trackable via blockchain. NFT-based tickets can fully coincide with the terms and conditions, expiration date, or other special benefits for the events thanks to the implementation of smart contracts.

Healthcare

Baylor College of Medicine researchers believe that NFTs can give patients better, more secure access to their data. They propose the creation of NFT digital contracts that would enable consumers to control who has access to their PHI and keep track of its sharing.

Patients may benefit from such control over personal data by being able to both protect and profit from their confidential data. NFTs, give healthcare organizations and patients the option to sell data to third parties for research purposes. Pharmaceutical businesses that undertake drug research and AI development companies that require data for training AI models could be the parties interested in buying such data.

Gaming

The gaming firm used to own the virtual items that players acquired or earned to customize their game identities. Now NFTs are transforming it by transferring ownership of these in-game assets, like outfits, or accessories for avatars to the actual players.

Players can sell, transfer, or trade those in-game items with one another while maintaining superior control and financial security. For instance, since they have “provable” ownership, players may be able to move their purchases from one game to another or earn and collect NFTs through many stages of a game, eventually selling them to other players for a profit.

Conclusion

NFTs promise security, traceability, and transparency throughout the lifecycle of a product. They also improve the entire customer experience and assist brands in developing a close and enduring relationship with the owners of their high-end products.

We can comfortably argue that we are at the very beginning of what is feasible given the immense potential of NFTs. Be aware that the rapidly expanding NFT technology is not showing any indications of slowing down, and that there will be uses for it in the future that we haven’t even tried to imagine.

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