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Top 10 Applications of NFT

  • Sangita Kalita
  • Jul 25, 2022
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"People are buying and selling NFTs today and 99% of the people in this world are not aware of this billion-dollar market and this opportunity is really a once in a century opportunity.” 

― Anuj Jasani

 

Currently, NFTs are sweeping the digital art and collectibles industries. Due to significant sales to a new crypto-audience, digital artists are seeing a transformation in their existence. 

 

Celebrities are also getting involved since they see this as a new way to interact with people. Digital art is merely one application for NFTs, though. As a deed for an item in the digital or physical world, they can be used to show the ownership of any special asset.

 

You will learn more about the applications of NFTs through this blog.

 

 

What is a Non-Fungible Token (NFT)?

 

Non-fungible tokens (NFTs) are cryptographic assets that can be identified with the help of special identification numbers and other such metadata. They are stored on a blockchain.

 

They cannot be exchanged or traded at equivalent value, unlike cryptocurrencies. This contrasts with fungible tokens, like cryptocurrencies, which are interchangeable and may therefore be used as a medium for business transactions because they are identical to one another.

 

NFTs, theoretically, may be used for any product. NFTs offer a new way to make money by digitizing assets, commercializing intellectual property, and authenticating the ownership of real assets online, despite having certain growing pains as a technology and a financial instrument. They are increasingly used to prove the authenticity of many rare, expensive, and collector artifacts.

 

Importance of NFTs

 

The idea of cryptocurrency has further evolved into non-fungible tokens. Modern financial systems provide sophisticated lending and trading platforms for a variety of asset classes, including real estate, lending agreements, and fine art. 

 

NFTs are a stepping stone toward the reinvention of this infrastructure because they make it possible for the digital representations of the physical assets.

 

Unique identity is certainly not a novel concept, nor is the concept of digital representations of real things. But when these ideas are combined together with the advantages of a smart contract blockchain that is not susceptible to manipulation, they transform into a powerful force for change.


 

Working of NFTs

 

NFTs are different from ERC-20 tokens like LINK and DAI since each one is unique and cannot be further divided, unlike ERC-20 tokens. Utilizing the Ethereum blockchain as a public ledger, NFTs can bring forward the assignment or claim of ownership of a specific piece of digital data. An NFT is created by utilizing digital objects to represent assets, no matter whether they are digital or not.

 

There can only be one true owner of an NFT. The information and unique ID, that no other token can reproduce, are used in order to manage ownership. Smart contracts that determine ownership and control transferability are used to create NFTs. 

 

A smart contract that complies with a separate standard, such as ERC-721, is executed when someone produces or mints an NFT. The blockchain where the NFT is being given receives this information. The minting process goes through the following steps:

 

  1. New block creation

  2. Information verification

  3. Information entry onto the blockchain

 

An exclusive identity for each newly minted token is connected to a single Ethereum address. They can't be used 1:1 interchangeably with other tokens. One ETH, for instance, exactly matches another ETH. NFTs are an exception to this. There is an owner for each token, and it is simple to confirm this information. They are tradable on any Ethereum-based NFT market and are based on Ethereum.

 

Also Read | How to create an NFT Wallet? 


 

Applications of NFT

 

The most common applications of NFTs are given below.


The image shows the Applications of NFT which include Testing Authenticity of Products, Real Estate, Medical Records and Identity Verification, Intellectual Property and Patents, Academic Credentials, Supply Chain, Gaming Industry, Ticketing, Artwork Tracking and Voting

Applications of NFT


 

  1. Testing Authenticity of Products

 

You can use NFTs to verify that the thing you are buying is genuine. Since the blockchain can permanently record information about the goods, physical products will soon be able to check for uniqueness and authenticity as well. 

 

NFTs can also be used to store data on the production process, assuring fair trade throughout. NFT has more uses besides just consumer goods. Numerous businesses have already used NFTs for industrial design prototyping with success.

 

By tracking and tracing food goods, NFTs can assist in resolving one of the world's current problems: phony food products, such as supplements and medicines. 

 

Imagine being able to view a nutritional supplement's complete path, from manufacturing to shipment, by simply scanning the QR code on the product you purchased online. Since the history of products is transparent, products that falsely claim to have been manufactured and supplied in a particular nation will eventually be exposed.

 

  1. Real Estate

 

Real estate and NFTs go together like bread and butter. When timestamped, NFTs can be used to transfer land deeds, show ownership, and even monitor how much a property has increased or decreased in value over time.

 

One of the sectors best prepared for NFT is real estate. NFTs can be utilized in the real estate industry to streamline and accelerate transactions, enabling smart contracts for properties (allowing automated payments), or even develop decentralized house rental services - all while safeguarding sensitive information like credit card numbers.

 

Imagine having access to all the information regarding the home you are purchasing with just a few phone taps. Learn everything about the property before you buy it, including its construction date, previous owners, renovations made, and more.

 

  1. Medical Records and Identity Verification

 

Since the transactions via NFT are validated on multiple nodes before they are added to the blockchain permanently, every record is accurate and they are also secure from malicious attempts at manipulation. 

 

As a result, the NFT ledgers can be used to store a person's medical records without compromise of confidentiality or risk of tampering from outside sources.

 

The NFT Birth Certificates that healthcare providers can issue to infants are only one example of how NFT applications have been created expressly to help healthcare professionals. 

 

Each child receiving one of these NFTs can be an efficient way to immediately establish a persistent identity on the blockchain connected to their birth certificate, which can subsequently be independently validated using NFT verification apps.

 

NFT ledgers also offer safer ways to store private medical information while maintaining access for authorized healthcare professionals as needed. 

 

Recently, narrowly-defined NFT applications have come up, and health insurance providers, hospitals, and other organizations have started to investigate how blockchains might help improve operations in hospitals by verifying the patient identities and recording the medical procedures without jeopardization of patient confidentiality.

 

  1. Intellectual Property and Patents

 

The protection of patents and intellectual property is excellent with NFTs. Additionally, users can use NFT tokens to demonstrate their ownership of any piece of information, which is not achievable with conventional IP rights tools like trademarks and copyrights.

 

With the use of timestamps and the whole history of an IP, it is possible to identify the owner. Because the NFT chain would be unchangeable, the owner of the NFT could always demonstrate that they were the original author of a piece of work.

 

The same is true with patents; NFTs might be utilized to guarantee and safeguard ownership of an innovation or creation. NFTs could potentially offer the data required for verification, establishing a public ledger that records all transactions pertaining to patents.

 

  1. Academic Credentials

 

NFTs are a reliable approach to display academic credentials. NFTs can offer evidence of attendance, a degree earned, and other significant information. This data is then stored on the NFT chain which cannot be compromised or changed. By awarding tokens for each finished course and using smart contract verification mechanisms to validate any degrees received, NFTs may generate immutable records for the courses taken.

 

A paper certificate may no longer be issued in the near future. NFTs will be used as a record of people's academic success, and NFT education tokens may be transferred to other people in order to show them that the owner of the NFT has earned it.

 

Also Read | NFT in Architecture

 

  1. Supply Chain

 

Verifying a product's origin, contents, and other factors is extremely difficult, especially in the food industry. However, by leveraging the blockchain, NFTs can be tied to a product, giving it a non-tamper-proof NFT identity. This is a good illustration of how NFTs and the supply chain may coordinate together.

 

NFTs also enable companies to follow the progress of their products from manufacturing to shipment and delivery. This maintains openness throughout a company's supply chain and gives customers visibility into what they are spending their money on.

 

  1. Gaming Industry

 

The gaming business and NFTs go together like peaches and cream. NFTs can be incorporated into the game industry by enabling cross-platform play. If players already own items or characters in a game, they will surely continue playing it. NFTs give game developers another means to build their brand and generate another source of revenue.

 

Since NFT items in games may vary in rarity, the NFTs also make trading easier in games. This can raise the value of NFT items. Since there is no middleman and transactions are instantaneous on the blockchain, NFT owners won't need to worry about scams. 

 

This gives up a world of possibilities, including the ability to buy guns or other equipment that has been tried out by actual users. Future blockchain games have already begun to fully utilize this application.

 

  1. Ticketing

 

In a short while, NFTs will be able to take the place of tickets. For instance, NFT "tickets" that have been given a specific ID can take the role of parking cards and be used to validate entry into the restricted area.

 

Due to the reason that NFT owners only require one token in place of several copies of it (similar to how one cannot print out money), this eliminates the difficulties with fraud and minimizes the use of paper. 

 

The same idea holds true for other modes of transportation such as bus tokens, where payment verification is done at various locations along the way using scanners.

 

  1. Artwork Tracking

 

A significant amount of art was destroyed after World War II. Some were replaced by knockoffs, while others were stolen by different people, organizations, and so on. Old artists' original artwork can soon be labeled for tracking with NFTs. Of course, this also applies to actual works of art that have not yet been produced.

 

This may, of course, go either way. NFTs can be converted into actual works of art, and physical works of art can be converted into NFTs (while maintaining the digital token of course).

 

It can aid in tracing the authenticity of a certain work and lessen or eliminate the prevalence of forgeries. This guarantees NFT owners that their possessions are actually genuine, especially if they purchased them through an auction house.

 

  1. Voting

 

Voters are regularly required to have a photo ID and proof of residence along with them when they go to the polls to cast their ballots. However, many people are losing their right to vote because they lack copies of their identification or other forms of proof of their address or even voter registration.

 

Since NFTs would give those without physical identification that demonstrates who they are and where they dwell in the nation a digital identity, they can assist in finding a solution to this issue.

 

As NFTs will be able to serve as an official record of those who voted along with their votes, this will help to reduce cheating and fraud during elections.

 

Also Read | Top NFT Business Ideas

 

Applications of NFT are still in their infancy, but it is clearly seen that not only games, but also everyday people who are going about their daily lives, would profit from utilizing NFTs. 

 

In addition to making many facilities easier to use, this will also help to boost transparency in many transactions, mainly to confirm who owns tangible assets like real estate, ideas, artwork, and others. More progress will be seen in this area over the upcoming years, and at the rate things have been moving, it might have already happened.

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