Are NFTs just artifacts or the next big thing for Authentication and Security?
Just like any other cryptocurrency, Non-fungible tokens (NFTs) have emerged as a one-of-a-kind segment in the world of crypto. Even though the technology and the concept have been around since 2014, however, NFTs are getting increased acclamation and traction these days because of their increasingly popular way of allied use cases. This clearly indicates that NFTs will stay for long because of the boundless opportunities and possibilities beyond collectibles and celebrities’ tweets or photos. Even researchers are predicting the future of non-fungibles in businesses and economic applications.
Toshendra Sharma, Founder & CEO of NFTically, a Polygon-backed NFT marketplace, says, “NFTs are slowly but surely becoming an essence of our everyday lives. And it will stay for long.”
Transactions are everywhere and whatever we do today is completely transactions based. It is crucial to understand that authentication is the key to facilitating any transaction and providing proof of ownership. That is where non-fungible tokens came into the limelight.
The true power of non-fungible tokens is to provide authentication and facilitate the transfer of ownership. In addition, it is noteworthy that new ownership opportunities and transactions that were not possible with conventional systems are possible by NFTs. The best part is that not only digital but physical assets can also be authenticated through NFTs.
An excellent example is BlockBar, a platform that offers NFTs of well-known alcoholic beverages, including a Glenfiddich whisky from 1973, a Penfolds shiraz cabernet, and a 1976 Dictador rum in a Lalique bottle. The rare physical liquor bottles, kept in a climate-controlled and secured facility in Singapore, are authenticated by the NFTs. Each NFT signifies ownership of a rare tangible liquor bottle that can be sold or transferred between parties anywhere in the world without the need to have the actual bottle handy. This transfer of ownership might theoretically continue for years until the bottle is finally opened.
Non-fungible tokens make transactions and the authentication process quite transparent, which is never possible in traditional methods. Because authenticating physical items involves several attorneys, notaries, and other intermediaries, which is a lengthy and tedious task. While on the other hand, NFTs make these transactions simple and cost-effective. In NFTs, you do not get the traditional paper but an NFT certificate named ‘Smart Contract’ that stores every detail in the form of records.
*A smart contract in the blockchain is a self-executing contract that comprises an agreement’s terms between buyer and seller, directly written in the line of code. The codes and agreements it contains; exist across a distributed, decentralized blockchain network. The codes control execution, and transactions are trackable & irreversible.
Also, each coin in the NFT system is indestructible since all its data is recorded on the blockchain using smart contracts. The ownership of the token is also immutable, meaning players and collectors—not the firms that produce them—actually own their NFTs.
NFTs are also verifiable. It means they can track back to the original product owner, enabling authentication without needing third-party verification, which is another advantage of maintaining historical ownership data on the blockchain.
In conclusion, it is safe to say that initially, even if attention has been mainly given to digital artworks, gaming, and crypto collectibles, NFTs are not constrained only to them. Instead, they can be used to demonstrate the possession & ownership of tangible assets, data, gadgets, and a license (such as a professional or marriage license). “From digital art to ticket sales, luxury items, collectibles, music, and gaming—NFTs have the potential to transform the way we interact,” says Vikas Ahuja, CEO at crypto trading platform CrossTower India, adding that India’s NFT market had the potential to grow to $1 trillion-plus.
Non-fungible tokens can democratize various industries, including technology, real estate, healthcare, etc., by proofing ownership and enabling authentication through NFT certificates. Even in the metaverse, NFT use cases for businesses are crucial. Without it, the metaverse will be unable to function and grow (and other blockchain applications). At the same time, the usage of NFTs in business and economic applications is boundless, making transactions smoother, safer, and more transparent. Hence, it is needless to say that non-fungible tokens aren’t just artifacts but definitely a big stepping stone for the authentication and security process.
“India’s NFT market had the potential to grow to $1 trillion-plus.”
