31/07/2021 Beyond Crypto Artwork: How NFTs Are Influencing Modern Business
Atal Bansal is President and CEO at Chetu, a leading U.S.-based custom software development and services company.
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Non-fungible tokens, or NFTs, have captured the world’s attention after a piece of digital-only artwork sold at Christie’s auction house for over $69 million.
NFTs are currently taking the digital art and collectible world by storm, thanks to a new crypto-audience. However, as NFTs are becoming more popularized, their use has broadened as well.
NFTs can not only be used for digital artwork or collectibles but also as a representation of ownership of any unique asset that is non-interchangeable, such as the deed to a building in both the digital and physical realm.
These non-interchangeable items, like property or a fine piece of artwork, can only have one official owner at a time. These items are secured via blockchain, so no one can modify an NFT or copy and paste another version of a pre-existing NFT into existence. With unique identification codes and metadata, these items are truly one-of-a-kind.
As a custom software provider who offers blockchain development services to clients across multiple industries, our company has not only developed and modified NFT solutions but also witnessed the unique ways this technology is being leveraged in the current market.
Recent History Of NTFs: From Colored Coins And Digitized Kitties To Trading
The origin of NFTs is often traced back to the famous Colored Coins in 2012. While notably not as refined and complex, this was one of the first uses of the blockchain for digital assets. Fast-forward five years, and you can find Cryptopunks, which was the first Ethereum-based NFTs, and perhaps the most well-known use cases of NFTs: Cryptokitties.
Launching in late 2017, Cryptokitties are digital representations of cats existing on Ethereum’s blockchain, where every cat has a different identification code and unique price in Ethereum. Similar to the success seen with Cryptopunks, Cryptokitties rapidly racked up almost $20 million in purchasing, feeding and nurturing costs.
This gamified crypto phenomenon, as a concept, has made its way to fame from purchasing cyber characters and feeding digital cats to being used in transferring property rights and private equity transactions in both residential and commercial real estate deals.
These types of business transactions deal with much more implications than simply forgetting to feed a digitized animal, of course. One of the implications of enabling several different types of tokens in a legally binding business contract is the user’s ability to provide escrow for several types of NFTs in a single financial transaction.
Other Use Cases For NFT Technology
NFTs are accessible in various forms and are utilized in several ways besides just digital art, all focusing on fungibility.
Having this type of exclusivity on digital platforms is something that is currently piquing the curiosity of many entrepreneurs and enterprise-level business executives across multiple industries. Breaking away from the “collector” angle of NFTs, below are other practical examples of how NFTs are permeating the business world.
Games
The gaming world has started experimenting with NFT solutions, with leading, AAA game development companies, like Ubisoft, investing in the technology. As of December 2020, the top NFT-based games currently on the market include Sorare, Decentraland, Gods Unchained and My Crypto Heroes.
As this concept develops, we may see an NFT-based game similar to The Simsor Second Life, where someone can live a double life online secured by blockchain technology. Let’s call it Cryptolife. Given the massive gaming scene and the ever-expanding use cases for NFTs, it wouldn’t be surprising if something like Cryptolife becomes the next big trend in gaming.
Fashion
Blockchain technology in the fashion world has helped to develop a new type of supply chain management. Consumers can digitally verify the ownership information of certain fashion accessories and items, which significantly reduces the risks of procuring counterfeit products.
Fashion designers can use NFTs as a way to protect the authenticity of their products, even if they’re designing and selling clothes, shoes, accessories, etc., as digital outfits that go beyond what can exist in the real world.
For instance, if a designer wanted to create a flaming dress or a lipstick that changes color throughout the day, they can do that using 3-D animation combined with NFT technology.
Events And Ticketing
When it comes to issues with counterfeit, the ticketing industry for sporting and concert events is one of the most hard-hit. In 2018 it was reported that around 12% of all concert-goers purchased counterfeit tickets. To combat this, ticketing companies are turning to NFT and blockchain technology to ensure that the tickets on the market are legitimate.
The great part about leveraging NFT technology for tickets is that ticketers can not only set the sale price but also the resale price to help remove the other predatory threat to the ticketing industry: scalping.
Licenses And Certifications
NFTs can be used for verifying licenses and certifications. Universities and employers require copies of references, student transcripts, course completion documents and more before they offer the position to someone in a company or an academic institution.
Creating NFTs can take away the burden of verification and record-checking, which saves administrators time and energy by accessing certain licenses and certifications.
Custom Software Development’s Role In Digital Assets
NFTs have revolutionized the concept of cryptocurrency. By enabling digital representations of important physical assets, NFTs are a major step forward in this game of reinvention.
Custom software developers can create a similar type of blockchain ledger provided by Ethereum that secures and safeguards NFTs from internet intruders. Expert NFT developers can create these cryptographic tokens and protect them in a Blockchain environment, ensuring businesses a reliable NFT platform to launch their secure trading and exchanges in industries such as advertising, virtual real estate and commercial art.
Whether you want to secure an NFT in an Ethereum wallet or support it using a different blockchain ledger, leveraging the right custom software developer is essential. Finding a development firm that has both blockchain and NFT development experience, as well as industry-specific expertise that directly relates to your business, is the only reliable way to turn your crypto-visions into realities.
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