When most people think of NFT, they envision something within a digital framework. That makes perfect sense. But what can NFTs be physicists about? Despite how the conversation around NFTs incessantly turns to “JPEGs of expensive monkeys”, there is much more to this technology than allowing the sale of digital images. And it all starts with how people use NFTs in relation to physical objects.
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Why make a real NFT?
Creating NFTs offers a number of advantages. Because of the way NFTs work, they’re a great way to keep something online. Once an NFT is created, the NFT’s existence is effectively stored on the blockchain. And this NFT will remain for an indefinite period of time. in addition, NFTs provide a higher level of security and transparency in online and sometimes offline transactions. These qualities of NFTs are the reason why their use cases extend far beyond the digital realm. How is NFT suitable for real life?
NFT and art
In the art industry, this technology can be very beneficial for all parties involved. A problem plaguing museums around the world is the issue of conformal provenance. A particularly infamous example mentioned in the episode was an authentic Egyptian sarcophagus on display at the Met. It was looted during the 2011 Egyptian revolution – and purchased by the Met for a staggering $4 million despite a lack of comprehensive certification of its authenticity. Significant progress can be made with NFTs to prevent bandits from selling stolen items. If someone with bad intentions tries to steal a physical work of art, all a prospective buyer needs to do to ensure authenticity is check your transaction history – as long as it has been pre-created as an NFT. NFTs are a great way to ensure the smooth running of high-value auctions for physical objects, as they can also act as a unique, secure, and irrefutable certificate of authenticity. This was the case when several objects from the famous Apollo 11 mission were auctioned for millions of dollars in early 2022. Without their NFT Certificates of Authenticity, this would not even have been possible, as the objects in question included a fountain pen and an ignition fuse. broke. In some cases, Web3 development companies develop technologies that allow users to “Tokenize” virtually any physical object as an NFT using what is known as the NFTA Universal Microchip. In doing so, a new NFT art scene for strictly physical media artists was created.
The collectors market
NFT collections often come with several thousand pieces of varying rarities, but some people in the NFT space have approached buying, selling, and trading NFTs as collectibles. NFTs don’t have to compete with physical collectibles. Several companies, such as Collect9, have also used NFTs as a way to digitize the ownership of physical assets, mainly collectibles. Sports cards often sell for millions of dollars on the open market, giving owners a chance to ensure their items are safe. The concept of ownership is a hot topic on Web3. Through NFTs, users can buy part of a high-value NFT, rather than all of it. For expensive NFTs like Bored Apes and CryptoPunks, this makes a huge difference. It also makes these investments less risky. Physical illustration or rare real-life collectibles remain expensive, so crafting these items as NFTs can provide the same benefit to buyers.
NFTs Everywhere
While the discussion so far has mostly been limited to the creation of unique high-value physical assets or items such as NFTs, all the potential applications of NFTs in the physical world do not stop there. It is possible that NFT could provide essential utilities for all types of people around the world. For example, the Romanian government is considering converting government documents into tokens. In June 2022, the National Institute for Research and Development of Informatics of Romania, in cooperation with Elrond, announced that the establishment of an institutional NFT market for Romanian citizens is underway. In this market, Romanian citizens have the opportunity to securely access, transfer and store official documents on the blockchain, such as NFT. Finally, NFTs figure at the origin of creation and ownership of digital assets, as everything is recorded in a decentralized public registry, everything is transparent and traceable, which improves data sharing between government agencies, reduces bureaucracy and improves efficiency and effectiveness of public services.
