Real-World Applications for Non-fungible Tokens (NFTs) — By Azgari Lipshy

NFTs are rapidly becoming one of the most talked-about developments in cryptocurrency. The total value of all NFT transactions in 2021 was 25 billion US dollars, with the costliest deal bringing in over 69.35 million US dollars. Recent years have seen a great deal of excitement surrounding blockchain technology and digital currencies. Individuals, companies, and governments must do everything possible to prepare for the coming digital economy.

So, if you’ve done any research on the blockchain, you’ve almost certainly heard the word “token.” In this piece, I’ll give a thorough breakdown of non-fungible tokens (NFTs), their function, and the value they add in various scenarios.

Non-fungible tokens (NFTs) are digital assets (music, games, and arts) that can be traded for other tokens because of their distinctive algorithm design and meta-data. They are stored on a blockchain. Unlike cryptocurrencies, they cannot be bought or sold for a fixed amount of another currency. In contrast, fungible tokens such as cryptocurrencies all look the same and can be used as a means of exchange because of this similarity.

NFTs are tokens that have several real-world uses, such as document verification, serving as intelligent contract tokens, and even avoiding market manipulation (reselling the token countless times). NFTs, which have been employed to create digital trade cards, 3D artwork, and even playable music, have generated a great deal of attention, thanks to notable projects like Crypto Kitties and Bored Ape Yacht Club. However, a few applications for NFTs are given below:

Items, particularly those in the food manufacturing industry, have significant difficulties improving their provenance, contents, and similar issues. However, NFTs can be tied to a product via the blockchain, giving it a non-tamper-proof NFT identity. This concept demonstrates how NFTs and the supply chain can function together.

NFTs can also enable retailers to track their items from production companies through delivery and shipping. Shoppers can research what they are purchasing with the help of NFTs innovation, and a business’s supply chain is kept evident.

NFTs will be utilized to verify the quality of the products you buy. Due to the blockchain’s ability to retain product information forever, physical products will soon be able to check their rarity and validity. To guarantee fair trade, NFTs may also be used to store data regarding the manufacturing process.

By detecting and monitoring food items, NFTs can assist in resolving the issue of fake food goods, such as dietary supplements and medicines. Imagine viewing the complete path of a food supplement you purchased online by simply scanning the QR code.

NFTs are a valuable tool for displaying educational certifications. The information saved on the NFT chain, which cannot be changed or hacked into, will serve as evidence of participation, degree achieved, and other significant details. By giving out tokens when a course is finished and using intelligent contract verification methods to verify any degrees earned, NFTs may be able to build records that can’t be changed.

The practice of issuing paper certificates will become obsolete in the future. NFT training tokens can be given to other people as proof that the individual holding them has an NFT. They were to record how well a student did in school.

NFTs in the real estate market and assets go hand in hand. With the use of time-stamped NFTs, land documents can be transferred, ownership can be established, and improvements in the value of the property can be tracked over time.

One of the most NFT-ready is the housing (real estate) industry. NFTs can be used in the real estate industry to streamline and speed up transactions while keeping safe, sensitive information like credit card numbers. They can also be used to create smart contracts for assets, which allow automatic billing (payments and renewals) or even decentralized house rental services.

Imagine learning everything you need to know further about the house you purchase with only a few scrolls on your phone or PC. Find out when the building was built, who owned it before, what changes were made, and anything else you need to know about it.

Since NFT operations are substantiated on various nodes before being incorporated into the blockchain permanently, they can be used to store a person’s healthcare records without affecting confidentiality or exposing the risk of outside tampering. This ensures that every document is factual and safe from malicious attempts. Closely NFT-utilizing applications have arisen, enabling hospitals, health insurance providers, and other institutions to investigate how blockchain technology might enhance operations. Private medical information is kept on hand while authorized healthcare practitioners have access when needed. Giving NFTs to every child is a quick and easy way to provide them with a reputation on the blockchain that will last their whole lives and is linked to their birth certificate.

Recently, NFTs and the gaming business have gone together like peanut butter and jelly. NFTs can be added to the gaming world if they can be played on different platforms. While NFTs give game companies other ways to grow their brand and make more money, they also give players more reason to continue playing the game where they now own personalities or items. NFTs also make trading items in games easier, increasing their value because NFT products in games can be rare in different ways.

Granted, real-world applications of NFT are still growing. Nonetheless, the technology will not only make many services more accessible.

In addition, it will also promote transparency in many transactions, particularly those involving the transfer of ownership of tangible assets like pieces of art, certification real estate, confidential records, and many more. With the current rate of progress, we can anticipate more mind-blowing results in the next few years.

Azgari Lipshy writes about technology, yoga, and her solo travels worldwide.

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