NFTs are currently taking the world by storm. If we’re working in theory, Nonfungible Tokens (also known as NFTs) can honestly be applied to just about anything. NFTs can offer a new way of digitizing the assets that you may have, authenticating the physical assets that you have on the internet, and can even allow you to monetize your intellectual property. Today we’re going to be going through how industries are utilizing NFTs.
What exactly are nonfungible tokens?
In order to understand the use of NFTs in an industrial sense, it’s important to understand what NFTs are.
NFTs are cryptographic assets that are completely unique, existing on blockchain technology. That’s where the “nonfungible” part comes into play, nonfungible meaning not mutually interchangeable. In this sense, a fungible asset is a dollar or a bitcoin, and it can be used in exchange for items. NFTs’ basis is one of decentralized finance (DeFi), wherein assets and market players are acted on a person-to-person and decentralized basis.
The allure of NFTs is the exclusivity that comes with them. There’s also a change-resistant blockchain of smart contacts that makes it so that the tokens can’t be copied, removed, or destroyed.
Identification, Certification, and Documentation
NFTs can be incredibly beneficial when it comes to personal identity management. NFTs create codes that hold unique sets of information, so it’s especially helpful if you decide to tokenize important documentation. This can include degrees, academic certificates, licenses, and even things such as medical records, birth certificates, and death certificates. Identification of the documentation can be issued over the blockchain as an NFT, wherein it can be traced directly to the owner.
Ideally, by digitally storing your medical records through NFTs, you can protect yourself from identity theft.
Domain Name Ownership
Through the use of blockchain, the owner of the blockchain controls the myriad domains that they have access to through the use of private keys. When not going through blockchain, the Internet Corporation for Assigned Names and Numbers (ICANN) controls the domain name service (DNS). A number of concerns have been raised when talking about censorship and security, as there is limited oversight when it comes to these domains. However, the good thing about blockchain is that when it’s recorded, it’s recorded permanently on a public registry, and it can’t be deleted or altered.
Blockchain domain NFTs can ensure that there is easy trading access as well as customizable domain names. When looking for decentralized alternatives to the standard DNS, the Ethereum Name Services (ENS) and Unstoppable Domains are good places to look. These places provide crypto-addresses that aren’t unlike a social media handle, as each handle is supposed to be unique. However, unlike social media, ENS and Unstoppable Domains let people buy and sell their crypto-addresses. The more popular the name, the higher price.
There are a number of ways that industries are utilizing NFTs. Whether that be through increasing security by tokenizing important documents or making sure their domains are unique to them, NFTs have a number of uses in industries.