Anyone who understands the tech behind NFTs knows that these are not just tools for selling digital art.
There are real-world NFT use cases for this technology. Lithium Ventures published a report outlining a few of these use cases. Ranging from video game assets, to supply chain management, NFTs have applications to almost everything around us in some capacity.
We see a lot of the same uses for NFTs these days. Digital Art and collectibles, and video game characters have led the way to this point. But, let’s take some time and understand how NFTs are going to change how we interact with almost everything. Because it’s only a matter of time at this point. In a world where we spend an ever-increasing amount of time online, it makes sense that we need a way to start to own and track the experiences we have.
Let’s take a look at some of these NFT use cases. And, a look at how they are going to change the way we interact with things, digital or physical, over the next few years.
NFT Use Cases in Transportation
First, Lithium outlines one major use case for NFTs in the transportation industry. Currently, unless you are savvy with vehicles, the average person does not know the ins and outs of the mechanics of their vehicle.
Let’s look at a general example. Someone walks into a mechanic with issues with their vehicle, and the mechanic attempts to determine what the issue is. After some troubleshooting, they may determine the issue. They then fix it, or say they fixed it, and you trust that they have done what they said they did. As soon as you drive away, that transaction is done.
But what happens when issues start to rise again? What if you need to go to a different mechanic. Do they need to repeat that process again?
“Literally anything that happens or is done
to your car is recorded and added to the blockchain. This entire record is then attached to an NFT which is essentially a ‘digital twin’ of your car (and therefore can also visually represent the state of the physical car as time moves on). If you wish to sell the car, you sell the NFT and deliver the physical good”
Watch as NFTs change how we interact with physical, real-life items. This is when we start to get into the concept of “Phygital” items. If we combine immutable records with assets that are frequently tampered with and artificially inflated in price to naive buyers, we start to see a more transparent market.
NFT Use Cases in Supply Chain Management
Start to think of all the food items you consume in any given week. Do you know where any of those items actually came from? Sure it says “Made in ___”, but when it comes to:
- Fair Trade Items
- “Healthy” Food
- Medical Supplies
that just isn’t enough. But, if we attach a smart contract to the supply chain of these items, we start to see significant improvements in transparency in this process.
If we put an NFT QR code on each of these items, you would be able to instantly track an item’s journey through the supply chain. Each stop, from the inception of the product, is input on the blockchain. If we apply this to Fair Trade items, for example, we start to see the benefits.
Say, in order to receive official fair trade certification, the supplier needs to meet specific benchmarks. Lithium uses coffee beans as an example:
“(1)The coffee is authenticated to originate from a specific country,
(2) all farmers are paid a fair wage, (3) the beans are transported under certain conditions and standards, (4) the coffee is not stored any longer than ten weeks, and (5) is distributed”.
Each of these steps is confirmable on the blockchain. Now, you can ensure that your items are coming from where they say they are. It’s only a matter of time before we’re able to scan the QR code for any item to trace its origins and authenticity. And since each of these items are unique, or non-fungible, we can use NFTs to make this a reality. Aura is already doing this with luxury goods. Say goodbye to counterfeit goods, with on-chain verification.
NFTs are changing the way we interact with the internet. But, they are also changing the way we interact with real-world items!
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