What are the most significant issues NFT can solve, and what path should be taken by companies on NFT?

The tech world is experiencing the launch of world-class innovations. One arena that is gaining quick advancement and user engagement is blockchain. No, we are not just talking about cryptocurrencies like BTC, ETH, or others. Here we will look into the non-fungible tokens and how companies can use them for their benefit.

Apart from bringing immense revenue to NFT creators, it can potentially resolve some of the significant issues. However, an NFT expert can give you better insights on the topic.

So let us look into how NFT are going to help us in solving the most vital issues we are facing today:

Issues regarding certification, identification, and documentation

Personal identity management can be a perfect space for NFTs to thrive, but it’s still too soon for such a level of utilization. NFTs contain one-of-a-kind code with a novel data set. The codes can tokenize documentation such as educational certificates, degrees, birth/death certificates, licenses, and clinical records.

Further, blockchain can issue the certification and identity as an NFT. Also, anybody can access the data embedded in NFT to confirm its ownership. Thus, utilizing NFTs to store and secure sensitive information digitally is useful. This may incorporate personal profiles, clinical history, academic and details about addresses, and so forth. Hence, it gives clients better control over their information and can assist with forestalling identity burglary.

Organizations can utilize similar ideas to secure passports and driver’s licenses in the coming years. In any case, utilizing NFTs to prevent visa, driver’s license, passport, and other details through a phone application is presently not available.

However, we can hope that future NFT projects will consider working on such advancement as well.

Issues regarding Supply chain and logistics

In the supply chain industry the primary utility of NFTs is verifying goods, their origin, and quality. Due to their transparency and unchanging nature, NFTs are appropriate for supply chain and logistics applications. They keep supply chain information true and reliable. Knowing where the products have been and for how long is vital in food and other fragile businesses.

NFTs can prevent forging, and assist with tracing the product’s life cycles along the supply chain and guarantee accurate information. This would be suitable to supply chains for big clothing brands. Likewise, organizations like the automobile business can give data in regards to every material and part of a specific vehicle. This can help control the cost. Additionally, NFTs would be valuable for ventures that are hoping to trace the utilization of sustainable and renewable materials.

Issues regarding Domain name ownership

Owners can handle their domains with the help of private keys using a blockchain domain framework. ICANN (The Internet Corporation for Assigned Names and Numbers) manages the standard DNS (Domain name service). As there is not much oversight of these domains, it causes worries about safety and censorship. Further, the system records Blockchain domain names in a public library permanently. Hence, third parties can’t erase or modify them. This way it eradicates such worries.

Blockchain domain NFTs empower simple exchanging and offer personalized domain names. The Unstoppable Domains, and ENS give crypto-based addresses that resemble much like a social media handle.

Notwithstanding, each name should be one-of-a-kind. Though social media users can not sell their username, Unstoppable and ENS Domains let them purchase and sell crypto-addresses. The more famous names are more expensive.

What paths should companies take on NFT?

NFT is giving companies an opportunity to offer memorable experiences to their consumer base. In addition to this, companies can effectively interact with their target audience.

Even though the technology is still in its early days, it can be really beneficial for companies. However, companies must do thorough research on how they can use NFTs in marketing their brand. For instance, you can try arranging creative campaigns and work with original NFT creators. Moreover, leveraging NFTs in a right way can help you generate more conversions and better revenue. For this, you can:

● Boost your brand awareness

● Enable customer engagement

● Offer exclusive brand experiences

● Generate customer interest in your business.

Furthermore, discussing your strategies with a certified NFT expert would be helpful.

Closing Thoughts

NFT is gaining popularity due to the unbelievable income NFT creators are getting. However, if we pay attention to the actual use of NFTs, we’ll see it is not just to earn high revenue. Instead, it is bringing excellent solutions to fundamental issues in various industries. Above, we have mentioned some of the issues that NFT can solve and there is more to come.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Smita Verma

Blockchain enthusiast and cover everything that goes on in the crypto ecosystem. I love researching and producing technical content on blockchain.