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Non-Fungible Tokens can establish an immutable record of ownership of any digital asset, and even real-world assets.
The issued token can then be utilized as an authenticator for any process concerning that asset.
A previous Trends Journal article (“THE CRYPTO ‘AGE OF UTILITY’ HAS JUST BEGUN,” 12 Oct 2021) detailed how an NFT powered music rights portal was helping artists fund their own album and tour projects by selling fractional rights to songs via NFTS, to raise money without record companies or crowdfunding platforms.
Companies in other industries are creating use cases and innovating with NFTs.
For example, ACOER, a software company in the medical field, has developed something called RightsHash™ to track medical consent and other info with NFTs.
According to the company, RightsHash offers a simple way to express and manage an individual’s rights and protections as distinct, globally unique digital assets.
RightsHash associates and tracks an individual’s digital rights—such as permission to participate in a clinical trial—to an NFT using the public Hedera distributed ledger platform.
Capabilities include the ability to track and monitor discrete rights and protections in real time, tracking transactions from various data sources and across different apps, demonstrating cryptographic proof of action, and providing an automated, continuous, transparent auditing of all related compliance transactions.
NFTs Can Operating Smart Contracts And DAOs
A recent Coindesk.com article outlined some novel ways that NFTs can make almost any process involving ownership rights more efficient, while building features that currently don’t exist into assets.
Take a concert ticket, for example. Issued as an NFT, the ticket to a favorite artist’s performance might include various functionalities and features:
- The income from your NFT automatically pays the artist 40%, and doles out different percentages to the DJ, lighting crew, and so on, thanks to the abilities of smart contracts. Because no middleman is required to organize the payments, you will pay nearly no expenses.
- An NFT could grant you the chance to be not only a spectator at Drake’s performance, but also a shareholder. The NFT could contain rights that confer a little cut of the concert’s profits. In other words, attending the concert may potentially allow you to earn money.
- The NFT might feature artwork from a designer you like.
- It may be used as a piece of concert memorabilia. As a result, it may be worth something in the future, similar to old Beatles concert ticket stubs.
- Inside the venue, the NFT may be used to purchase food or beverages.
- If you purchased a VIP ticket, the NFT grants you access to the artist’s backstage area, as well as maybe unique access to future digital items.
As the few examples mentioned illustrate, NFTs and the crypto networks powering them, are only in the infancy of their potential to transform almost every industry.
For more on NFTs, check out:
- “ONE OF A KIND: THE WORLD OF NFTs” (10 Aug 2021)
- “NFTs COULD BE ‘BIGGER THAN CRYPTO,’ COINBASE CEO SAYS” (16 Nov 2021)
- “A MOVIE STUDIO ON THE BLOCKCHAIN” (7 Dec 2021)