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NFTs are more than just PFPs – 5 ways non-fungible tokens will transform society

The non-fungible token (NFT) sector has seen a surge in popularity over the past year and a half as projects like Bored Ape Yacht Club and CryptoPunks have caught the attention of the general public.

While the idea of ​​raking in a six-figure payday for the latest trending digital artwork was a major factor in the attention the sector garnered, the truth is that the crypto industry has only scratched the surface of what NFT technology is capable of.

Here’s an overview of some of the next frontiers in the development of NFT technology, which has the potential to fundamentally transform everyday life.

medical records and identification

Medical records and ID documents are important pieces of information that are easily misplaced and difficult to replace, even in the digital age. This is an area where NFT technology can offer a wide ranging practical use case that most people in society can benefit from.

Rather than leaving large healthcare institutions to record, manage, and track an individual’s medical record, a unique NFT ledger assigned to each individual can store all medical information while maintaining confidentiality and privacy.

This would also allow an individual to control what information is shared with a healthcare provider when they seek treatment, while keeping less relevant personal information private.

It is possible that this process may one day begin at birth with the issuance of a newborn NFT birth certificate by a healthcare provider or government agency. This can also be the start of creating a digital credential that can be tracked in NFT form.

Digital forms of identification allow individuals to limit what information is shared where identifying information is required, e.g. B. An application that verifies that a person is over 21 years old without also revealing other information that is often found on ID cards such as a home address.

Tokenization of real estate and assets

The tokenization of real estate and other real-world assets is perhaps one of the broadest and most paradigm-shifting applications for NFT technology, as it impacts numerous sectors.

Aside from being an easy way to track and verify ownership of an item, tokenization of assets will eventually allow them to be used in many of the different applications in decentralized finance (DeFi).

Ultimately, individuals will be able to use an NFT, which is the deed for their home, as collateral for a DeFi protocol that will allow them to borrow funds to use elsewhere in a manner similar to refinancing.

The tokenization of larger items, like a hotel or a luxury yacht, also allows for fractional ownership, giving those who normally cannot afford such an item the opportunity to gain access to it.

There is no limit to what can be tokenized and tracked on a blockchain and there is a good chance that all types of assets including stocks, bonds, artworks, rare collectibles and luxury items will one day be represented in NFT form .

Intellectual Property and Patents

NFTs are ideal for intellectual property (IP) and patent tracking as they take the current system of trademarks and copyrights to the next level by providing a way to prove ownership of content.

The data storage capabilities of blockchain technology allow the entire history of a piece of IP to be tracked and timestamped, providing a way to provide indisputable ownership. Likewise, the data for a patent or invention can be recorded on a blockchain in NFT form, providing a way to protect and certify ownership.

Related: Theta Labs is helping Sony introduce 3D NFTs compatible with Spatial Reality Display

Ticketing and Rewards Programs

One use case for NFTs that is already being explored and implemented in entertainment venues around the world is the creation of tickets or passes for events. The ability to create an unlimited number of unique NFTs allows venues such as concert halls and sports arenas to issue tickets as NFTs that can be easily verified or transferred.

The proliferation of smartphones in society has enabled digital ticketing, and the integration of NFT technology will help make this process more efficient and easier to track.

Businesses may set up rewards programs where participants receive NFTs that are used to track purchases or activity within the organization for reward purposes. Rather than issuing physical cards or tracking activity by phone number, which reveals important personal information, activity can be tracked via an NFT, which is scanned without revealing any other information.

Exclusive Memberships

A final application of NFT technology is as a general utility token that performs a specific function, such as verifying membership in an exclusive club or providing access to a specific service.

This is a feature already used by a number of NFT projects where they have a website or discord group that can only be accessed after verifying ownership of an NFT from that particular collection.

The applications of this idea are wide-ranging, ranging from content creators giving fans exclusive access to songs if they own an NFT released by that musician, to secret societies giving rare NFT owners access to their sacred libraries.

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The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.