Non- Fungible Tokens(NFT) and their Use Cases

Written by
Surbhi Tomar
Published on
March 28, 2022
Read time
7 Min Read
Category
NFT

NFT stands for non-fungible token. NFTs are tokens that can be used to denote ownership of a unique item. Non-fungible is an economic term that is not interchangeable for other items because they have unique properties.

Fungible items can be exchanged because their value defines them rather than their unique properties, meaning they can be traded or exchanged for one another.

For example, Ether or dollars are fungible because 1 ETH / $1 USD is exchangeable for another 1 ETH / $1 USD.

a digital identity that cannot be copied, substituted, or subdivided, stored in a blockchain, and used to verify authenticity and ownership.

How Does an NFT Work?

NFTs are recorded on a blockchain, which is a decentralised public ledger.

Although NFTs can be hosted on different blockchains, they are most often stored on the Ethereum blockchain.

An NFT is made up of digital objects that represent both tangible and intangible elements and is "minted" from them. For example, an NFT could represent:

  • Digital Art :
  • GIFs
  • Collectibles
  • Music
  • Videos
  • Real World Items :
  • Deeds to a car
  • Tickets to a real world event
  • Tokenized invoices
  • Legal documents
  • Signatures
  • Lots and lots more options to get creative with!

NFTs are essentially digital copies of real-world collectibles. As a result, the purchaser receives a digital file rather than a physical oil painting to hang on the wall.

They also obtain exclusive rights to the property. True: NFTs can only have one owner at any given moment. It's straightforward to verify ownership and transfer tokens between owners because NFTs contain unique data. They can also be utilised by the owner or author to keep track of certain information. Artists, for example, can sign their work by including their signature in the NFT's metadata.

What are NFTs used for?

More details on some of the more well-developed NFT use cases and visions are available here. 

Ensuring Authenticity of Products

NFTs can be used to authenticate that the item you're buying is genuine. Because the blockchain can keep information about a product indefinitely, tangible objects will soon be able to be checked for uniqueness and validity. NFTs can also be used to keep track of information regarding the production process, ensuring that everything is done fairly.

NFT applications don’t stop at consumer products either. Several companies have already used NFTs for industrial design prototyping with great success.

Fake food products, such as supplements and medicine, are a current concern in the world; NFTs can help to address this by tracking and tracing food products. Imagine scanning a QR code on a nutritional supplement you purchased online and viewing the product's whole journey from manufacturing to delivery.

Because the track record is transparent, products that falsely claim to be created and supplied in a given country will eventually be exposed. 

NFTs in Gaming

● used to create non-duplicable in-game items

● Provide ownership to the gamers

NFTs and the gaming business are a perfect combination. By permitting NFT cross-platform gameplay, NFTs may be integrated into the gaming world. NFTs provide game producers with a new method to spread their brand and generate cash, while players are more likely to continue playing a game if they already own characters or items within it.

NFTs also make trading in games easier, which might boost the value of NFT items in games, which can vary in rarity. Because there is no middleman, NFT owners won't have to worry about frauds. Transactions are completed instantly over the blockchain. 

NFTs in Ticketing

● Every attendee has exclusive access, and any ticket duplication is monitored and avoided.

In the near future, NFTs will be used to replace tickets. Parking passes, for example, can be substituted with NFT tickets that have been assigned a unique ID, which you subsequently use to validate your entry into the restricted area.

This eliminates difficulties with fraud and reduces paper consumption because NFT owners only require one token rather than several copies (much like we don't print our money). The same approach applies to bus tokens or other modes of transportation when payment verification is done via scanners at many points throughout your journey. 

NFTs in Real Estate

● NFTs can be used to represent physical land or property on a blockchain.

● impossible for malicious actors to

NFTs and real estate are a perfect match. Timestamped NFTs might be used to transfer land documents, offer confirmation of ownership, and even track changes in property value over time.

One of the most NFT-ready industries is the real estate business. NFTs can be used in real estate to simplify and speed up transactions, enable smart contracts for properties (enabling automatic payments), and even build decentralised house rental services, all while safeguarding sensitive data such as credit card numbers.

Imagine knowing everything you need to know about the home you're buying with only a few phone taps. Know when the house was built, who owned it originally, what changes were made, and everything else leading up to your purchase. 

Medical Records and Identity Verification

Because NFT transactions are validated on multiple nodes before being permanently added to the blockchain, NFT ledgers can store an individual's medical records without jeopardising confidentiality or risking tampering from outside sources. This ensures that every record is accurate and secure from malicious attempts at manipulation.

NFT applications have been created expressly to assist healthcare workers, such as NFT Birth Certificates, which healthcare providers can issue to infants. Issuing one of these NFTs to each child can be a quick and easy way to establish a lifelong identity on the blockchain that is linked to their birth certificate and then validated with NFT verification apps.

NFT ledgers also offer a safer way to store sensitive medical information while still enabling authorised healthcare providers access when needed. In recent years, a number of narrowly defined NFT use cases have emerged, with hospitals, health insurance companies, and other organisations exploring how blockchains could help improve hospital operations by verifying patient identities and recording medical procedures without jeopardising patient confidentiality.

Isn't it incredible? 

Course certificates and licences

The usage of NFT allows certificates and licences to be tokenized, ensuring their ownership and authenticity.

Many job applications and university admissions documents and certificates are required to validate an applicant's competence and expertise. However, there are only a few ways to correctly check the legitimacy of these documents at times. It's also possible that individuals or businesses will falsify the documents.

Companies and organisations can obtain and verify certificates, providing evidence of course completion, thanks to the usage of NFT in certificate issuance.

It can also apply to other forms of licences, such as driver's licences. 

Voting

When voting in many countries, voters must carry a photo ID and proof of residency with them to the polling station. Many people, however, are losing their right to vote because they don't have copies of their IDs or any other evidence that proves where they live or if they are even registered to vote.

Imagine if voting is integrated with NFTs.

NFTs can alleviate this problem by providing a digital identification for persons who lack physical paperwork proving their identity and where they live in the country.

This will also help to prevent voter fraud and cheating because NFTs will serve as an official record of who voted and how they voted. 

Metaverse

NFTs will play a role in the creation of the Metaverse. NFT use cases like the ones listed above, as well as others like paying for things using NFT tokens, are just a few of the ways NFTs can help define a virtual reality future in which people spend the majority of their time engaging with digital avatars rather than their physical counterparts.

It serves as the Metaverse's foundation. It has an NFT as your future avatar. It is your true identity within the space, and no one can take it away from you. Other people's NFT avatars can likewise be purchased with NFTs. However, due to licencing concerns, the NFT of a celebrity may be more expensive or unavailable altogether.

Conclusion 

Although the use cases for NFT are still in their infancy, it is apparent that not only games, but also average people going about their daily lives would benefit. Not only will this make many services easier to use, but it will also enhance transparency in many transactions, particularly when it comes to the ownership of tangible objects like artworks, real estate, concepts, and ideas.

It’s clear that the NFTs have been a game-changer for many industries. In the near future, NFTs are expected to take over almost every industry.

Share this Blog
surbhi

Surbhi Tomar

Surbhi is the Co-founder of a growing company Bloquelabs. She is a No-code tool specialist eg. Webflow and Bubble etc.

Surbhi Tomar

Surbhi is the Co-founder of a growing company Bloquelabs. She is a No-code tool specialist eg. Webflow and Bubble etc.

©2022 BLIV.CLUB. All rights reserved.