IF DATA IS THE NEW OIL, NFTs ARE THE TANKS THAT STORE IT

The oil industry is a perfect analogy for the data industry. If data is the new oil, enterprises are the tankers that transport it. But most importantly, NFTs are the tanks that store it.

NFTs (Non-Fungible Tokens) are digital assets, also known as cryptocurrency, which can be traded on a blockchain network like Bitcoin or Ethereum. They can represent anything from a physical object to an individual’s identity to a piece of data on a blockchain ledger.

In this era of data, where companies use it as a fuel for new business models, products, and services, enterprises are turning to blockchain as a solution to extract and refine their data for transportation, as well as to exchange it with other enterprises in a secure and reliable way.

WHY SHARE DATA?

Considering the benefits of sharing data is crucial for data owners. There are numerous incentives for them to share their data with those who request it. On the other hand, the requester has the opportunity to offer something in return that is beneficial to both parties.

Since sharing data requires a lot of trust and understanding between both parties, it is not always easy. The sharing of data is also associated with some risks, such as security and privacy concerns. In spite of this, companies should still share their insights and knowledge with other businesses.

A solution needs to be in place that will enable the sharing and exchanging of data in a secure manner without compromising the data’s integrity or the privacy of the companies.

ISSUES WITH DATA SHARING

When it comes to data sharing, there are two main problems:

● The regulatory problem. Considering how data regulations are constantly changing around the world, it can be challenging for enterprises to know exactly what data they can share, with whom, and for what purposes. Furthermore, in some cases, enterprises may need to get the explicit consent of their data providers before sharing their data.

● The technology problem. Is it possible to create the digital infrastructure necessary to enable data sharing as an asset for B2B ecosystems? This problem has been addressed by various cloud-based platforms. Nevertheless, these solutions failed to meet the regulatory requirements for B2B data-sharing.

NFTs AND BLOCKCHAINS ENABLE THE SHARING OF DATA AS AN ASSET

It is essential that a digital pipeline creates a way for data to be shared securely and freely between companies in order to show off its true power.

Blockchain-based enterprise NFTs may hold the key to solving this problem. Blockchain began as a method of securing cryptocurrency transactions, but it has now transformed into a ledger for any type of information that needs to be shared in a trusted and secure way.

As a result of the advent of blockchain, assets including real estate, luxury goods, and financial instruments can now be recorded there. Now it is time for enterprises to view their data as an asset, and NFTs help that happen.

Each time information about an asset is stored in a blockchain-based registry, a Non-Fungible Token is issued to represent it. The token can be shared within the enterprise or among enterprises.

An ecosystem can benefit from NFTs for a number of reasons. The main ones are:

  1. Containerisation of data. With NFTs, data can be packaged into a traceable, shareable, and trackable asset. For instance, manufacturers can create product passports in which product lifecycle data can be shared. Companies can offer pay-as-you-go models, financiers can lend against digital assets, insurance companies can provide usage-based insurance, and secondary buyers gain an accurate record of the product which enables higher value and lower cost of ownership.
  2. Automation of data-sharing. The rapid pace of enterprise data generation makes it impractical to have a manual layer for enforcing the terms of data sharing between enterprises. Once data is containerised as an NFT, companies can share it across their ecosystem as an asset. Using smart contracts, this process can be automated in a user-friendly and verifiable manner, while making it possible to enforce the financial terms contained in these NFTs automatically.
  3. Enablement of security compliance. Each blockchain-based NFT transaction is digitally signed and time-stamped, thus creating a safe and verifiable audit trail of the asset that the NFT represents. The same happens when data is converted into an NFT, enabling the enterprises to comply with relevant regulations.

Massive volumes of data are being created and consumed as a result of the continuous expansion of digitalisation and linked technology. However, due to legislative and technological hurdles in data sharing across businesses, the potential for producing value from this data remains largely untapped.

Because data is being deemed the “new oil,” companies will need to think about data-sharing regulations in order to compete and innovate in the long run. NFTs enable enterprises to treat data as an asset and exchange it in a safe and secure manner.

Looking to know more about how to share your data in a secure way?

We want to hear from you. Get in touch with us on our website: https://www.justdataproblems.com/. We won’t try to sell you anything or spam you with emails. We promise.

Later, alligator.

Just Data Problems — Team

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