There’s more to NFTs than just PFPs — 5 ways nonfungible tokens will transform society

NFT art continues to grow in popularity, but what other industries could the technology disrupt in the next few years?

The nonfungible token (NFT) sector has undergone a surge in popularity over the past year and a half as projects like Bored Ape Yacht Club and CryptoPunks captured the attention of the general public. 

While the idea of fetching a six-figure payday for the latest trending digital art piece has been a major factor in the attention placed on the sector, the truth is that the crypto industry has only scratched the surface of what NFT technology is capable of.

Here’s a rundown of some of the next frontiers in the development of NFT technology that has the potential to make substantial changes in everyday life.

Medical records and identification

Medical records and identification documents are vital pieces of information that are easy to misplace and difficult to replace, even in the digital age. This is one area where NFT technology can offer a wide-ranging practical use case that most individuals in society can benefit from.

Instead of leaving it up to large health institutions to record, manage and track an individual’s medical record, a unique NFT ledger that is assigned to each person can store all medical information while maintaining confidentiality and privacy.

This would also allow a person to control what information is shared with a health provider when seeking treatment while keeping less relevant personal data private.

It’s possible that one day this process will begin at birth with the issuance of an NFT birth certificate to newborns by a healthcare provider or government agency. This can also be the start of establishing a digital record of identification that can be tracked in NFT form.

With digital forms of identification, individuals will be able to limit what information is shared when identifying information is required, such as an application that will verify if a person is over 21 without also revealing other information that is often included on IDs like a home address.

Real estate and asset tokenization

The tokenization of real estate and other real-world assets is, perhaps, one of the most wide-ranging and paradigm-shifting applications for NFT technology for the implications it has on numerous sectors.

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

Eventually, individuals will be able to use an NFT representing the deed to their house as collateral on a DeFi protocol that will allow them to borrow funds to put to use elsewhere in a similar manner as refinancing.

The tokenization of larger items, such as a hotel or luxury yacht, also allows for fractionalized ownership, giving those who could not typically afford such an item a way to gain exposure to it.

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

Intellectual property and patents

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

The data-keeping capabilities of blockchain technology allow for the entire history of a piece of IP to be tracked and timestamped, offering a way to provide undeniable ownership. Similarly, the data for a patent or invention can be recorded on a blockchain in NFT form, offering a way to protect and certify ownership.

Related: Theta Labs to help Sony launch 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 in the creation of tickets or passes to events. The ability to create an unlimited number of unique NFTs allows venues like concert halls and sports arenas to issue tickets for entry as NFTs that can be easily verified or transferred.

The prevalence of smartphones across society has made digital ticketing possible, and the integration of NFT technology will help to make this process more efficient and easier to track.

Companies can set up rewards programs where participants are given NFTs that are used to track purchases or activities within the organization for rewards purposes. Instead of issuing physical cards or tracking activity by phone number, which exposes an important piece of personal information, activities can be tracked via an NFT that 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 like verifying membership to an exclusive club or providing access to a certain service.

This is a function that is already being employed 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 and run the gamut, from content creators offering fans exclusive access to songs if they hold an NFT released by that musician to secret societies allowing rare NFT holders to access their sacred libraries.

Want more information about trading and investing in crypto markets?

The views and opinions expressed here 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 conduct your own research when making a decision.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
On Key

Related Posts

Overvalued or Undervalued? How much is Ethereum actually worth?

Ethereum (ETH) is one of the most popular and well-known cryptocurrencies. For the market, the Ether price is the second most important value after the Bitcoin. At the moment we saw a sharp drop in the value of Ethereum in 2022. But is Ethereum undervalued or overvalued today? In this article, we will tell you how much Ethereum

ETC Price Analysis: What is Ethereum Classic and its Battle With Ethereum

Ethereum Classic is a fork of Ethereum. People who closely observed the crypto world in 2016 know about the Ethereum hard fork. What is dramatic about the happening is that the once-vaunted “code is law” philosophy has been broken, pushing major waves in the crypto world. This post is all about ETC price analysis and its battle

Andreessen Horowitz Announces $4.5 Billion Fund for Crypto, Blockchain Sector

At a time when the digital assets market is witnessing an acute downturn, American venture capital fund Andreessen Horowitz has announced a new $4.5 billion fund for crypto and blockchain investments. This is the fourth fund from the Silicon Valley fund for the crypto asset class. Together, the fund now accumulates $7.6 billion. Andreessen’s first

Bullieverse Integrates ChainLink VRF for Bear Hunt NFT Game

The Bullieverse metaverse on Ethereum and Polygon have integrated the ChainLink Verifiable Random Function. The decision was made for a fair distribution of NFTs in the new Bear Hunt 3D game. Moreover, the function will help users verify the transparency of the game while also making sure everyone stands an equal opportunity to win the