Opinions expressed by Entrepreneur the collaborators are his.
The recent influx of news about the trend of non-consumable tokens (NFT) that have been getting surprising amounts online has a universal reach. While they have recently become a new fad for celebrities to spend millions on, NFTs have an amazing amount of utility that accompanies their collection. As we continue to explore this new class of fully digital assets, we should pay attention to the practical use they can offer: a comprehensive and highly secure approach to online business transactions.
Beyond Art: NFT for Business
The usefulness of NFTs lies in its use of blockchain technology; a decentralized digital ledger that is almost impossible to modify or hack. Beyond proving ownership of a single digital asset, this technology has almost limitless applications beyond simple pixelated art.
Imagine a world where the writing of your home exists as NFT. Instead of having to regenerate each time the house is sold, the writing would record all the changes automatically, making closing very easy. Not only that, but it would also be much safer: no one could forge ownership of the house, because it could not alter the NFT.
This would not only apply to homes. It would be useful in any environment where you need to track and test the property. Instead of having to spend time looking for documentation to prove that you bought and owned something, NFT would provide a perfect record of the complete history of ownership of an item.
You may see applications for concert workers and job offers. In addition, having the time and pricing mechanism built into your NFTs creates a digital work order that can be changed in real time as the work progresses. Prospective college students could coin an NFT representing their application profile, and colleges will bid for them by offering admission and scholarships. But it’s not just about utility; NFTs also provide an improvement in security.
Related: NFT Gold Rush: This is why everyone talks about non-consumable tokens
A more secure transaction platform
Paper transactions are inefficient, require more human employees, and tend to get lost. However, they have an advantage over the cloud-based documentation that is currently used: it is often easier to prove the authenticity of a paper document. Documents stored online can be hacked, duplicated or altered, costing companies millions of dollars each year.
The NFTs of the future could solve these two problems. They add a new layer of security to digital transactions while improving efficiency. Anyone involved in a transaction can see the NFT journey from creation to the final version in real time, as well as know exactly who else was involved in this journey. It creates a virtually inhackeable system that is encrypted, easily distributed, and unalterable. Identity theft could become a thing of the past. The asset representing an NFT is tracked and verified to exist, which increases the confidence of all parties to a transaction that is accurate and superior.
Related: Impact of Blockchain when it comes to data security
A real win-win technology
NFTs have the potential to drastically reduce transaction processing costs for both the buyer and the seller of a good or service. The fees involved in these transactions, which are often a function of the analog systems used to process them, could be drastically reduced. This could also create the ability to increase the volume of transactions. NFTs are easy to coin and one person can coin several in an hour, which is not the case with physical documents or even many digital documents.
It is difficult to conceptualize all the benefits we could see from the widespread adoption of NFTs. The blockchain technology underlying NFTs has already changed the world and will continue to do so as companies work on issues such as interoperability and widespread adoption by average consumers.
Instead of continuing to be a high-priced novelty for people who already have everything else, the NFTs of the future will be judged by the efficiency and security of their day-to-day business. There are no losers in this world, other than perhaps the less-than-tasty characters who take advantage of today’s systems.
Related: NFTs will soon be inevitable. That’s a good thing.