The popularity of NFT art has continued to rise, but what other sectors might the technology disrupt in the next several years?
Over the previous 18 months, the nonfungible token (NFT) industry has seen a tremendous boost in popularity as projects like Bored Ape Yacht Club and CryptoPunks have drawn widespread attention.
While the promise of a six-figure payment for the most current popular digital artwork has attracted attention to the industry, the reality is that NFT technology has only scratched the surface of what it can do.
Here’s a summary of some of the next frontiers in NFT technology, which have the potential to revolutionize our lives.
Records and identification
Documents like medical records and identification documents are easily misplaced and difficult to replace in today’s digital age, despite the fact that they may be truly secure. This is an area where NFT technology can provide a wide-ranging practical usage scenario that most people in the society can use.
Instead of depending on large health organizations to keep, manage, and track a patient’s medical record, each person may store all medical data in their unique NFT ledger while maintaining confidentiality and privacy.
A person seeking treatment could control what information is provided to a health professional while still keeping less-important personal data private by using this tool.
One day, it is possible that this procedure will begin at birth with the production of an NFT birth certificate by a healthcare provider or government agency. This could also be the beginning of building a digital record of identification in the form of an NFT.
Individuals will be able to limit what information is shared when identifying information is necessary, such as a form that verifies a person is over 21 without also revealing other information that may be included on IDs like their home address, with digital forms of identification.
Real estate and asset digitization
NFTs’ potential to revolutionize the real estate and other real-world assets market is, perhaps, one of the most far-reaching and paradigm-shifting applications for NFT technology owing to its broad range of applications.
Beyond being an easy method to keep track and verify ownership of an object, tokenizing assets will eventually let them be utilized in a number of different apps in decentralized finance (DeFi).
Individuals will be able to use an NFT representing the deed to their property as collateral on a DeFi protocol that will allow them to borrow money and invest it in another place, much like refinancing.
Tokenizing larger goods, such as a hotel or luxury yacht, allows for fractionalized ownership, allowing people who couldn’t previously afford them to get access to it.
There is no upper limit to what may be tokenized and tracked on a blockchain, and it’s virtually certain that all sorts of assets, including equities, bonds, artworks, collectibles, and high-end products will one day be represented in NFT form.
Patents and intellectual property
NFTs are ideal for monitoring IP (intellectual property) and patents because they take the current system of trademarks and copyrights to the next level by allowing you to prove ownership of any piece of content.
Blockchain technology’s data-keeping capabilities enable the complete history of a piece of intellectual property to be tracked and timestamped, allowing for indisputable ownership. Similarly, the data for a patent or invention can be saved in NFT form on a blockchain, providing an avenue to secure and validate ownership.
Ticketing and rewards system
In the creation of tickets or passes to events, one use case for NFTs that is now being explored and implemented across the world’s entertainment sector is. Venues like concert halls and sports stadiums can distribute tickets as NFTs that can be quickly checked or passed through because they are capable of producing an infinite number of unique NFTs.
The use of cell phones throughout society has made digital ticketing feasible, and the integration of NFT technology will aid in the efficiency and ease of monitoring.
Participants in a rewards program can get NFTs that are used to keep track of purchases or activities inside the company for incentives. Instead of handing out physical cards or tracking activity via the phone number, which exposes a lot of personal information, activities may be tracked via an NFT that is scanned without revealing any other data.
NFTs can also be used to create a unique membership token, allowing users to join an exclusive club or gain access to a particular service.
This is an existing functionality employed by a number of NFT projects, that have a website or Discord group that can only be accessed after verifying ownership of an NFT from that particular collection.
The applications for this concept are numerous and varied, ranging from content makers who give their fans unique access to songs if they own an NFT released by that artist to secret societies that allow rare NFT holders to access restricted libraries.
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This is a guest post. The information and opinions expressed here are the author’s alone. Every investment and trading decision comes with risk; you should do your own research before making a decision.