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.
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.
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!
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.
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.
We hope you found this article helpful! We’re going to keep on creating short content about NFTs, blockchain technology and digital art. If you have any questions or if you would like to watch/read something related to these topics, then email us at firstname.lastname@example.org.