The internet has brought the world closer together. Digital media has advanced significantly, allowing people to share a wide range of content online, including photos, movies, and audio. Every day we wake up and see thousands of posts uploaded on social media. What if we told you that these social media posts could be turned into digital assets?
You must be perplexed; let us dispel all of your doubts and ambiguity. Well it is indeed true, digital files can now be converted into digital properties. How? Through the use of NFTs. When the founder of Twitter put an autographed tweetup for sale as an NFT, it took the internet by storm. Then there was a flurry of blockchain news concerning the development of NFT tokens, leaving everyone perplexed as to what NFTs are. You may check out NFT development services.
In a nutshell, NFT stands for non-fungible token. NFTs are crypto assets that are used to track the ownership of digital items on the blockchain. These objects could come in any shape or form. It might be a video, image, or text, such as Twitter’s founder’s autographed tweet.
NFTs have the distinct attribute of not being replaceable. A bitcoin can be traded for another bitcoin, but NFTs are unique. They are mutually incompatible; if you swap one NFT for another, you will end up with an entirely different NFT. There are a number of NFT token development companies that offer NFT token development services to users.
NFTs and blockchain are the trendiest trends in the market right now, with some predicting that 2021 will be the year of the NFT. Find out about blockchain development solutions in India. However, usual uses such as portraying digital art or antiques, or even pictures such as memes, are driving the current expansion of NFTs. The enterprise application of NFTs is thought to be the next big thing in the NFT sector. Let’s take a look at some current industry implementations to see how NFTs can be used in the corporate blockchain sector.
- Patents as NFTs
IBM has announced the adoption of NFTs blockchain for patents in collaboration with IPwe, a global platform for the IP ecosystem. Now patents are a type of illiquid intellectual property owned by a company. Patents will be tokenized by IBM, allowing businesses to sell, buy, trade, and market them. In a way, IBM will monetize the illiquid patent by creating a market where those patents may be sold openly and freely. This action is expected to spur more innovation in the use of NFTs in the intellectual property industry.
- NFTs in Supply Chain
Koinearth is a Bangalore-based Indian software startup that has developed markets. It is a platform that may be used by businesses to execute NFTs in the supply chain industry. The solution will provide a number of advantages, including increased market visibility, the ability to trade illiquid assets, the ability to attract investors, and the ability to provide ownership transparency to the system.
NFTs are utilized here not as a revenue model, but as a mechanism to trace the digital ownership of an item such as a bill of lading, providing complete auditability to the organizations.
- Intellectual Property
Aside from patents, major firms have a plethora of illiquid intellectual property. By representing such an asset with NFTs, businesses can tap into their reserves and generate new revenue streams.
In addition, intellectual property can be sold as a partial NFT, allowing different buyers to control a share of the asset. As the buyers’ investment rises with the use of assets, it creates a recurring revenue model for them. For businesses, it expands the market to a larger number of possible purchasers, resulting in a higher asset value.
- Real Estate
For major firms, infrastructure has frequently remained a stagnant investment. Setting up separate teams to maintain infrastructure, buy, and sell offices based on their operation takes a lot of money and effort, especially for an MNC with a large number of offices around the world.
On a digital marketplace, NFT blockchain projects can be utilized to represent such an asset. Instead of relying on intermediaries, businesses can declare their infrastructure as NFTs and use them for a variety of reasons. For example, a US-based corporation with a Cambodian presence must establish local teams to manage the real estate there. It can either sell the office digitally, rent it out, or use the company’s limited capacity to provide co-working for local firms if it uses NFTs. Easy access, better market visibility, tracking real estate ownership, and fractional ownership are some of the features addressed by NFT’s blockchain.
While the majority of these platforms are public Blockchains, they can be leveraged to build a secure enterprise application. The sole reality is that in order for the NFT to be enterprise-enabled, the assets represented by the NFT and the entities authorized to trade the NFTs must be properly defined.
Enterprise NFT use cases, whether in finance, healthcare, media, event management, or intellectual property, might be the next big thing in the DeFi industry. They have the ability to reclassify assets.