The Modern Uses of Non-Fungible Tokens

• By Tauseef Azhar
• 13-07-2022
• Technology

Lately, there's been a lot of hype involving blockchain technology and digital currencies. People, businesses and even the government are utilizing these technologies to their full potential in the socially and digitally connected era we live in. Non-fungible tokens (NFT) are a new technology that has a wide spectrum of uses beyond the typical NFT application.

The NFT market has already spiked a lot of interest and enthusiasm for gamers, artists, musicians, luxury buyers, and fans of digital kitties. yet the use cases for non-fungible tokens continue to expand. Blockchain enthusiasts and business entrepreneurs are getting a hold of an enterprise blockchain development company to help create these phenomenal NFTs to help spike up their revenue streams.

So, what exactly are NFTs?

The term "Non-Fungible Token" (NFT) refers to a unique digital token that is encrypted with the creator's signature and is inextricably tied to that creation. It validates the ownership and authenticity of the work. This type of digital asset can be used to simulate real-world items including artwork, music, videos, and in-game items. They are commonly purchased and traded online, often using cryptocurrencies, and are frequently encoded using the same software as most other cryptos.

Within the world of blockchain and cryptocurrencies, tokens are a critical element. They can be found in many different forms and are used for many different purposes. One form of token that has distinct characteristics and purposes is the non-fungible token. Focusing on fungibility is crucial because the majority of cryptocurrencies intend to act as a universal means of exchange.

Uses cases of Non-Fungible Tokens 

Physical items, digital content, and even intangible ideas like intellectual property can all be represented with NFTs. It's a real fantasy to consider its uses outside of digital content, such as 2D or 3D graphics, but there are a number of real-world uses as well.

Product Authenticity

NFTs can be used to verify the authenticity of the product you are buying. Due to the blockchain's ability to store product information securely, physical products will soon be able to verify their rarity and validity as well. In order to guarantee fair trade, NFTs could also be used to store data surrounding the manufacturing process.

Documentation, Identification & Certification

NFTs can be used to tokenize documents like diplomas, academic certificates, licenses, and other credentials and also medical records, birth certificates, and death certificates because they contain code with a specific set of information. As an NFT that can be linked back to the owner, the identification, as well as certification, can be immediately issued through the blockchain.

Therefore, using NFTs to digitally record and preserve medical history, profiles, education, and location data can assist prevent identity theft while also giving users better control over their data.

Real Estate

Virtual real estate NFTs can be traded on NFT marketplaces via transactions that are far more effective and transparent than traditional real estate transactions. Instead of using a conventional deed or title, an NFT is used to document ownership over virtual real estate on a decentralized ledger. Ownership of holders' digital possessions is eternal.

NFTs can be used to market digital properties in both the virtual and physical worlds. Applications for digital real estate are becoming more popular in virtual worlds thanks to games like Decentraland. Locations in a virtual world are made and bought by participants. By using NFT, the creation and ownership of the items are guaranteed to be transparent.

Medical Records

NFT transactions are bring validated and verified on various nodes before being uploaded to the blockchain permanently, helping to ensure that each and every record is precise and secure from fraudulent attempts at manipulation. As a result, NFT ledgers can store a person's medical records without making compromises on confidentiality or facing the risk of tampering via external sources.

Art, Sports, Luxury Products & more

NFTs have rapidly evolved especially through collectibles, art, gaming, and virtual worlds. Industries have benefited from the NFT phenomenon with virtual game Cryptokitties and the 24x24 pixel art images known as Cryptopunks, which are formed algorithmically. Furthermore, it paved the way for the sports industry with memorable sports cards and collectibles.

The ability to offer digital certification of their ownership and validity is what gives crypto-art as well as other entertainment applications most of their worth. NFTs can offer authentication in industries that are rife with forgery and counterfeiting, such as art, high-end luxury brands, or other collectibles. NFTs cannot be changed or reproduced, which is useful in combating plagiarism and copyright theft and enabling artists in making money from their work.

The Metaverse

NFTs serve as the Metaverse's core foundation. The NFT is your future avatar. It is your true identity within the space, which no one can steal from you. NFTs could also be used to purchase other people's NFT avatars. The NFT of a celebrity, however, can be too expensive or unavailable altogether due to licensing restrictions.

To Conclude

Although NFT use cases are now in their early stages, it is apparent that they will benefit not only games but also regular people going throughout their everyday lives. This will not only make many services easier to use, but it will also make more transactions transparent, particularly when it comes to who owns tangible assets like real estate, artwork, ideas, concepts, etc.