Aug 4, 2022
With all the hysterical hype around NFTs (Non-Fungible Tokens) earlier this year, it has become easy for people to approach it. NFT is an incredible way to keep the digital assets you’re creating and control their supply. It can change the landscape of industries significantly by providing additional streams of revenue and cost-saving mechanisms.
But what exactly is NFT?
Non-Fungible Tokens NFTs is a unique string of code that works as ownership rights of digital artwork. Stored on a virtual blockchain ledger, NFTs are digital entities used to purchase different types of digital media, and they have a unique code that identifies the genuine owner.
Blockchain- a distributed ledger technology, is uniquely used for sharing and reconciling information for an interconnected future. In simple words, it is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Per NFT represents a real-world object like a video, music, art, virtual trading card, or an in-game item. These assets (digital) are purchased and sold online using cryptocurrency. The idea of NFT has discovered some profitable use cases in the present world. The potential of NFTs, just like blockchain, surpasses far beyond their initial use cases, which brings them to the spotlight. One can also anticipate challenging growth in new and innovative NFT use cases in the metaverse.
NFTs are stamped through blockchain-enabled smart contracts that designate ownership and govern the transferability of the NFTs without the intervention of any third party. Smart contracts refer to computer protocols that can be self-executed and verified without any human interventions. Smart Contracts are an agreement that executes themselves automatically when parties meet predefined scenarios. Just like any other legal contract, a smart contract also has a set of rules which the parties have to follow strictly.
Non-Fungible Tokens being so powerful in their sheer utility delivers the confidence that they will become a piece of each individual’s life in the near future. NFTs can significantly modify the landscape of industries from gaming to supply chain management by delivering additional streams of revenue and cost-saving means. Putting the hype aside, since the underlying blockchain technology keeps developing, NFTs can have meaningful use cases in different industries.
Use cases of NFTs –
1. Gaming – Gaming and NFTs seem like a match in heaven, and just getting started with what can be done. In today’s world, gaming and finance are rapidly getting traction among users and developers alike because of the development of in-game NFT assets by some of the top names in the gaming space. NFT-based play-to-earn games have gained enormous attraction over the last year. So, it would be better to keep an eye out for NFTs from different games.
2. Art and Entertainment – NFTs can have a strong influence in markets that are infested with fraud and forgery like art, luxury brand, etc. This is because NFTs can deliver digital verification of their authenticity and license. The information or data can be added to the blockchain to stop them from being copied or shared without the owner’s permission. NFTs also ensure that artists can earn royalties. If an artist or a small creator sells an NFT, they get power every time it’s resold.
3. Music – NFTs have the power to fundamentally transform the music industry by turning all the songs, albums, music, and lyrics into NFTs. By doing so, musicians can get compensated fairly without record labels taking away most. Musicians can leverage NFTs to –
Tokenize their songs and albums
Sell limited digital assets to make an additional source of income
Provide majesties to producers
4. Supply Chain – Just like how NFTs show records of the original artist in the art world, NFTs can be used to enhance supply chain operations by storing metadata of products into the blockchain, which deters data elimination and unauthorized data manipulation. Blockchain technology can help trace the movement of goods along a supply chain. This transparency and accountability further prove beneficial for more legitimate business activity.
5. Metaverse – Metaverse is basically a superset of virtual reality (VR), the internet, and augmented reality. Virtual lands are purchased and sold via NFTs. When an individual purchases virtual land, the NFT defining the ownership of that lot is transferred to the wallet of the buyer. Few of the outstanding applications of metaverse are already prominent in different forms and are already enjoying good levels of adoption. 2022 would emphasize the adoption of the metaverse. In the coming years, blockchain predictions would focus largely on the potential technological support for the metaverse by big tech companies. One can also look out for chances of metaverse games offering undivided benefits such as social and investment options. One of the significant aspects of the metaverse is decentralization. This facilitates transparency and easy access to the metaverse. Other than decentralization, the metaverse also depends on blockchain capabilities for confirming user governance privileges alongside verifiable provenance.
While many businesses and tycoons will try to exploit the market, the NFT community will continue to carve out the space for themselves with a growing group of thoughtful artists, collectors, and enthusiasts committed to helping and guiding others through this space.
Blockchain and NFTs have the power to move industries forward towards a sustainable future. Blockchain is certainly one of the most advanced digital technologies in the present times. The trends discussed above for NFTs and blockchain show how it is transforming with every passing year. With considerable beneficial applications that are already being implemented and explored, these technologies are making a mark for themselves in almost all sectors.
As we head into an age of digitalization, it’s no longer a query of if organizations worldwide will grab on to the technology. At MSRvantage, we believe in transforming businesses by accelerating innovation and efficiency across almost all the major industries around the globe. With our next-gen blockchain-enabled solutions, we help companies to innovate and increase operational efficiency. With our blockchain-enabled products, solutions, and services like smart contracts, track and trace, asset digitization, and rewards & loyalty programs, we help businesses enhance their values by helping them at each and every step of blockchain adoption. Thus, changing the aspects of the organization by accelerating efficiency and providing an innovative platform.
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