NFTs have a reputation for being extremely expensive and silly pieces of digital art. However, NFT technology is having implications across many different areas of life including proof of ownership, housing, crowdsourcing, and much more. Throughout this article, we’ll take a look at how the blockchain technology behind NFTs is actively changing the world as we know it.
Cars and Houses
Naturally, NFTs aren’t associated with physical properties because they’re non-fungible assets. However, the technology behind NFTs is a great way of tracking ownership of assets including cars and houses. Essentially, by assigning smart contracts to the sale of physical assets, the middleman is removed, and the process becomes much smoother and more secure. However, there is a long way to go until this hits the mainstream, with many people in need of blockchain tech education.
Even though NFTs are typically associated with the sale of digital media, it’s worth mentioning it because it’s changing the way artists shift their work. Before NFTs, digital artists could sell work for very little money because there was no way of proving ownership, whereas blockchain technology securely documents transactional history attached to NFTs, meaning artists can sell their work at a much higher price. Further, thanks to royalty functionalities within the NFT marketplace, artists can continue to earn money for every additional sale.
NFT technology is already being used to sell digital media, but it can also be used by creators to fund upcoming projects, in the same way that Kickstarter supports start-up businesses. When fans invest in a media project, creators can communicate through wallet addresses and invite investors to exclusive events and screens.
Proving ownership of assets and creating temporary contracts is one way that NFT tech will change the world. However, there’s still plenty of work that needs to be done before being widely adopted. If you take a look at football player contracts, you will find complex stipulations that are difficult to transfer across to other teams. With NFT smart contracts, parameters can be set up within oracle systems, which track sale conditions. Once contract terms have been met, assets are released to the target team’s wallet.
There’s more to cryptocurrencies and blockchain than making money. Instead, the technology is helping organisations create decentralised financial systems, which benefit communities enormously. For example, El Salvador became the first country to allow cryptocurrency to be recognised as a legal tender. In countries with corrupt banking systems, blockchain helps make life fairer.
As well as decentralised financial systems, NFT tech is making charities more transparent. For example, with every donation, the crypto assets can be tracked for their use. This helps give assurances to people that their money is being used for its intended purpose.
Whether you’re ready for change or not, there’s no denying the fact that NFTs, and their underlying technology, are changing the way people interact with asset ownership and digital media. Essentially, the NFT revolution will bring about transparency, data privacy, fairness, and a healthy community.