How NFT Technology Will Change the Future of Business

With all the hysterical hype around NFTs earlier this year, it’s easy for us to approach them with cynicism and distrust. The thing is, those massive auctions only represent a tiny fraction of what NFTs have to offer. Nathan talks about exciting parts of NFT technology and explains all the utility they have outside of making Beeple a kajillion dollars.

How NFT Technology Will Change the Future of Business

Beeple’s 10 000 days NFT made headlines this year when it was sold for 69 million dollars.

Rumoured to have been planned and bought by the same group of people, this and other hysterical market speculation surrounding NFTs gives us enough reason to dislike and distrust the NFT space completely and throw the baby out with the bathwater.

But, that would be misguided and short-sighted.

While the technology is still being developed, and many NFT projects are likely to fail, NFT technology itself is so powerful in it’s sheer utility that we are certain that it will become a part of everyone’s life in the (very) near future.

“This is not just money. It's the entire exchange, transfer and storage of value for the internet. Whole business models are about to change massively because of what this technology unlocks.” Raoul Pal, Economist & Investment Strategist and Publisher at The Global Macro Investor.

In this article, we take a look at how NFT technology can be applied to solve real-world problems in various industries. 

But first, let’s understand the mechanics of NFT technology.                    

Understanding NFT Technology

NFTs (Non-Fungible Tokens) are built on blockchains. The blockchain system is a ledger that stores every NFT that has ever been created on it with a unique identification code. Think of it as a fingerprint. Once an NFT is created, it cannot be removed or replaced.       

For these reasons, NFTs can be used to prove origin and authenticate ownership.

NFTs are minted through smart contracts that assign ownership and manage the transferability of the NFTs without a third party.

Smart contracts refer to computer protocols that digitally facilitate the verification, control, or execution of an agreement. 

Simply put, “The blockchain presents a new way for us to access and trust data, communicated through the web.” Jessi Baker, Founder of Provenance.

Art, Entertainment & Collectables

NFTs become super powerful in art, luxury brand and collectible markets that are plagued with fraud and forgery as they are able to provide digital verification of their authenticity and ownership. 

NFTs are also able to ensure that artists earn royalties in perpetuity meaning that if a small creator sells an NFT, they get royalties every time it’s resold.

For the media and film industries, files can be added to the blockchain to stop them from being copied or shared without owners' permission.

Identification & Documentation

As each NFT that is created has a unique key, it can be used to tokenise identity documents and certifications. 

Recently, the Republic of San Marino made use of NFTs for Covid vaccine passports in order to validate the documents and mitigate forgery.

Supply Chain Logistics 

In the art world, NFTs show records of the original artist or seller. They also enable us to see the selling price and how many times the artwork has been sold (and to who).

In the same way, blockchain technology can help us trace the movement of goods along a supply chain. This is useful for industries looking to track food and perishable items, luxury goods, automobile parts, and the use of recyclable and sustainable materials.

This transparency and accountability have huge ramifications for more ethical business activity.

This application is already being set in motion! Take a look at Provenance. A UK start-up setup to help businesses share information about the people, places and materials that create those products. 

Using blockchain technology, supply chains become transparent!

How NFTs will impact the supply chain

Opportunity For Creators

When you transform your digital work — image, music, video, or otherwise into an NFT —  it’s an excellent way to mark the digital assets you’re creating and control their supply. By turning your digital art into a scarce object — no longer easily duplicated — it protects the value of your work and ensures you get paid a fair price and recognised as the rightful author. 

Furthermore, in our current digital ecosystem, companies like Google and Facebook, make money from the interaction between creators and their online community.

But, this would fall away as NFTs allow a direct relationship with the creator and the community who are the token holders.

If you’re still not convinced, we have one more thing to add.

The NFT Community is a growing group of thoughtful artists, collectors, and enthusiasts committed to helping and guiding others through this space.

While many businesses and capitalists will try to exploit the market, the community will continue to moderate and etch out the space for themselves.

Other posts you may enjoy

The FTX Saga and the Need for Legal Enforceability in Web3

Join us as we dive into the FTX saga, a classic case of white-collar fraud in the world of crypto, highlighting the importance of legal enforceability in Web3. Learn about how Real-World Assets (RWAs) integrated with blockchain technology can revolutionize investment opportunities. Discover SunCash by Momint, a shining example of RWA integration with Web3, offering legally enforceable ownership of real solar projects and a 12% yield.

5 min read

Momint Partners with Cybera to Prevent and Respond to Cybercrime

We can now perform advanced customer due diligence in order to wipe out any attempts at fraud on the Momint marketplace with CYBERA.

2 min read

Can You Earn While Funding Solar Power?

Solar crowdfunding solutions and digital assets allow just about anyone to invest in solar while earning a passive income.

52 min read

The Future of Royalties in NFTs: Should NFT Royalties Exist?

Royalties are a cornerstone of the growth of NFTs, but what future do they have in various ecosystems?

6 min read

Want to learn more
about Web3?

Understand the crucial concepts that will be shaping our world over the next decade, from early internet to NFTs, from modems to metamask from Web2 to Web3.

Sign Up on Momint