NFT or non fungible tokens are the newest blockchain technology advancement that drives various innovations across multiple industries. Be it art & craft, security, DeFi, and enterprise, the use cases of this relatively new advancement are growing significantly.
NFTs are advanced digital tokens and real-world assets that you can apply to any digital entity to claim your ownership. With this capability, industries seek various profitable ways to use them. In addition, individuals can digitize their physical assets and sell globally without any regulations or compliances.
NFTs are non fungible, which indicates they are not mutually interchangeable. It is different from fungible assets — such as fiat currencies, metals, or cryptocurrencies. All these traditional assets are exchangeable. NFTs are based on decentralized finance (DeFi), which eliminates the involvement of intermediaries.
The gist of NFTs is in their digital representation of assets coupled with the use of unique identification and robust smart contracts. Because of blockchain, the tokens can't be replicated, removed, or deleted. Blockchain also lets NFTs be traced back to the respective owners and excludes the need for third-party confirmation. Blockchain protects the ownership of the NFT, and it gives the owner the exclusive right to transfer the token. With such cutting-edge characteristics, let's have a look at advanced use cases that can help businesses transform their operations.
Identification and documentation
As all NFT tokens are unique, this asset's property comes in handy for managing customers' documentation and identification. As NFTs include code with a unique set of data, they can be used to tokenize important information, including certificates, licenses, academic degrees, and other vital documentation.
By employing NFT to tokenize these documents and critical information, both companies and users can securely use their data. NFT technology eliminates the chances of identity theft and revokes severe cyber attacks from happening. Industries like insurance, healthcare, and FinTech will be the biggest beneficiaries of this implementation. Even if the customer base increases substantially, companies don't need to worry about the performance of their internal operations.
Domain name ownership
With the advancement of blockchain, how customers used to manage their domains has changed significantly. Using an NFT-based blockchain domain system, companies can manage their domains using private keys. The decentralized system's most significant advantage is that the blockchain domain names get permanently recorded in the public registry. As these domain names can't be modified or deleted, it eliminates the chances of any forgery.
Blockchain domain NFTs allow customers to trade their domain names, ensuring the entire control remains to them. By using Unstoppable Domains or Ethereum Name Service (ENS), decentralized domains offer crypto-addresses like social media handle addresses, but each name must be unique. As companies invest heavily in their branding and customer acquisition with their innovative products or services, it's a perfect use case of NFT.
Robust supply chain management
The primary purpose of NFTs in the supply chain prevails in authenticating products, assuring their quality, and confirming their origin. Therefore, NFTs implementation is suitable for logistics management as it offers greater transparency and immutability. With these characteristics of NFTs, it becomes easier for companies to keep the supply chain data authentic and reliable.
In addition to this, NFTs eliminate counterfeiting and help companies trace the shipment across all touchpoints. Along with this, NFT can do wonders for automotive OEMs and it can help companies track every spare part shipment seamlessly.
Getting started with NFT development
Seven Bits is an innovative blockchain development company that offers bespoke NFT solutions for your business. Whether securing your business-sensitive assets, critical information or protecting unique entities, we have got you covered. Our Blockchain Center of Excellence (CoE) team understands your business and drafts the best implementation.
Whether you are looking to integrate NFT solutions with your existing system or need a new enterprise application, our developers can turn every idea into an experience. In 2021 and beyond, where more people are moving towards decentralized systems in almost every industry, integrating NFTs early is a smart business move. Scale your business and serve your customer better with Seven Bits. Contact us at email@example.com to explore how NFT and blockchain can help your business flourish online with higher agility.