Although cryptocurrencies have already gained attention as being the most valuable and profitable digital asset, non-fungible tokens have surpassed them at an exceptional rate. The benefits, utility, and worth the non-fungible digital asset contains are enormous and worth considering. Being a new addition to the crypt space, non-fungible assets have proved their worth by offering several assets that can be recognized and stored in the blockchain.
While art and artwork remain the main focus of non-fungible assets, some other assets can be created as non-fungible assets. If you are looking for investment options other than art, you have come to the right spot.
What are NFTs
Non-fungible tokens are unique, non-fungible, irreplaceable, and non-exchangeable assets stored in the blockchain. The encryption tools and robust security mechanism utilized by the blockchain technology help prevent its forging and let owners maintain their ownership rights over their assets. This is why it has become the top currency of the decentralized financial world.
Their supply, which is regulated by the blockchain, helps establish their scarcity, which contributes to their worth in the marketplace. However, the owner will regulate the scarcity of an asset that can either stay unique or have multiple copies. You can earn immense profit by listing your digital assets on the marketplace. Not only this, the asset allows owners to gain royalties every time their asset is re-sold.
What do they Represent?
The non-fungible assets were introduced as digital commodities used for trading purposes. However, with time, they have expanded their utility and invited many real-world examples. An NFT can be fashion products, medical bills, tickets, domain names, memes, tweets, gaming items, wearables, real estate, vote, GIFs, music, video, picture, or even a signature.
What Digital Assets Other than Art Can Be Created As NFTs?
With time, non-fungible assets have significantly evolved regarding their benefits and use cases. Similarly, it has offered people to store digital assets other than art in the blockchain. They have the following use case beyond art collectibles and pieces:
An industry that has observed the most significant perks and utility of non-fungible assets is, without a doubt, the gaming industry. They not only offer players immense collectibles, wearables, resources, entities, or artwork, but they also present several in-game experiences that all the players will find worth their time and energy.
The play-to-earn games are designed to reward the playthrough of their gaming journey. Such games award users with different and unique assets that they accumulate as they pass every game level. The assets collected help players with the game, but they also let the users gain more profit with their ability to be monetized and traded on the marketplaces.
Hence, developers and designers get a way to grow their brand, and players get a way to cash those collectibles as digital assets. The popular play-to-earn games are Decentraland, The Sandbox, and Axie Infinity.
NFTs have also proved their power and worth in the ticketing industry as proof of ownership and a source of validation for ticket holders. The tickets can represent access to a sports event, parking area, public transport, concert, conference, and much more. The ticket encompasses a unique ID that can prove your identity and let you enter restricted areas since blockchain eliminates any chance of forging and manipulation that might result in multiple copies of a single ticket.
The non-fungible assets let royalties reach the team through smart contracts. Ticket holders might be awarded unique benefits offered by the franchises. They might include meeting with the asset holder’s favorite celebrity or a signed jersey by the player.
The supply chain industry has also embraced and adopted a vast list of benefits offered through non-fungible assets and blockchain. Since the business sector is full of fraudulent attempts, merchants and consumers do not want to compromise their experiences with a product that might be tampered with.
Through NFT identifiers, companies will ensure their products safely walk through the manufacturing phase to the shipping and delivery phase. This way, transparency will be established to help the company grow in terms of sales volume.
The primary benefit of having digital assets stored in the blockchain is the validation and authentication that it brings and protects. They achieve it by spotting fraudulent activities and any manipulation that might affect the asset in general.
Fashion and sport are some of the many industries victims of counterfeit merchandise. If you want your products and assets to remain protected against tampering or hacking, try to store them as non-fungible assets that can help you maintain and protect them.
Non-fungible tokens are a great way to protect your academic credentials against altering or hacking since they can act as proof of record for your attendance, admission, courses, degree, and other relevant data attached to your academic life. By providing immutable records and degree verification through smart contracts, students will no longer be required to store and maintain physical certificates that are difficult to handle.
Guaranteeing Authenticity of Products
Through non-fungible assets, people will maintain data regarding the manufacturing process, authenticity, ownership, and rarity of real-world physical products. While storing the records of physical products into the blockchain, consumers will see if they are authentic or not.
This way, they will have a safe shopping experience. For people who do not want to compromise their experience with physical products, the decentralized financial system lets them trace the manufacturing details of the products they wish to purchase.
Real-World Land Records
Although the tokenization of the physical lands in the real world has not yet commenced, there are already many real estate properties stored in the blockchain as non-fungible assets. Some famous examples include the lands provided by Decentraland, Axie Infinity, or The Sandbox. The information stored in the blockchain in its size, price, owner name, and location helps provide authentication and ownership rights to the asset holders.
Intellectual Property and Patents
Unlike trademarks and copyrights, which are the traditional IP rights tools, non-fungible tokens can let intellectual property or patent holders prove their ownership rights more easily. Since any non-fungible asset stored on the blockchain is immutable, no one can manipulate the authenticity of your intellectual property or innovations (patents) if we compare it to the traditional methods that we can easily manipulate through timestamps.
Being one of the many things that non-fungible assets represent, real estate associated with Non-fungible assets can help people provide their proof of ownership, track the property’s details, let them transfer land deeds, and evaluate changes in the value of the property. Users can even speed up transactions, create rental services, or set smart contracts for their property by storing them on blockchains.
Traditionally, people are supposed to submit the following documents on the polling booths to make themselves eligible to vote:
- A photo ID
- Proof of residence
- Their voting registration
If they fail to submit any supporting documents, they are disenfranchised. The modern world has many solutions that can save people’s time, effort, and energy, and NFTs bring new ways and ease that solve many authenticity-related matters. By providing digital identities to people, they can be used to prove their identities while voting. This way, we can also help minimize the chances of cheating and fraud voting.
Medical Records and Identity Verification
Since transactions are validated on multiple nodes before they are registered on the blockchain, confidentiality and risk factors related to the safeguard of the asset are protected. This way, every piece of information stored in the blockchain is protected against fraudulent attacks, including theft, hacking, or manipulation.
The accuracy and validation of several medical records are maintained on the blockchain. If you want to create a lifetime identity of your child on the blockchain, try accessing NFT Birth Certificates that your healthcare providers will issue and will be verified by NFT verification apps.
The Importance of NFTs
Since the emergence of the pandemic and the imposition of lockdown, people have started spending a huge portion of their day on the internet leading many online industries to grow and many digital projects to emerge. And non-fungible assets are not an exception. They have been proved to be the easiest, reliable, and fastest way to earn an income. All you need to do is create a unique artwork that will speak for its authenticity and originality.
Moreover, the blockchain technology integration helps the assets maintain their authenticity and proof of ownership, which blocks cybercriminals from trying their luck at manipulating, forging, or stealing the asset. In addition to this, the assets are not only limited to artwork. They can be used to represent nearly everything physically and digitally.
If the popularity of non-fungible tokens continues at the same pace, there is a chance that more ideas and use cases will be associated with them in the future. With these immense utility and earnings options, non-fungible assets are certainly here to stay.