Written by Debarshi Chaudury, the CEO and Founder of Quantilus Innovation Inc., as part of the Forbes Technology Council. Click here to see the original post.
Growing at an exponential rate, NFTs have become a hot topic for investors, creators, musicians and artists. The NFT wave is driving the value of various digital properties like signed screenshots of tweets and highlight reels from NBA players.
2021’s first quarter saw NFT sales reach $2 billion. The reality is, NFTs are accelerating countless digital transactions every day, and at the heart of the value is the authenticity that a decentralized and transparent blockchain technology can provide.
The term non-fungible means something is unique or the only of its kind. And the main differentiator between an NFT and cryptocurrency, despite both running through blockchain technology, is that each NFT has its own unique value. An artist may create two separate NFTs of the same piece of art and both pieces could vary in value (whichever one was created first will be sold for a higher price, for example).
This authenticity for each digital asset is possible because each token has a verifiable metadata and transaction log that can help prove the history of ownership. And the blockchain provides the security for these tokens, keeping all this data safe and almost impossible to replicate.
Looking past the realm of the artist, this authentication factor provides endless possibilities for the business world as well. As the CEO of a company that is building a platform to enable content producers to create, market and sell NFTs in an easy and cost-effective way, here are a few applications that I believe may be on the horizon for NFTs:
Ticket scalpers can become an issue for any event a venue may be running. Any event host may struggle with controlling the number of tickets sold from release while also trying to avoid creating an instant reseller market. Managing tickets on the blockchain as an NFT would give the option to make each ticket non-transferable, which would obviously derail any value for a reseller.
The trip to an airport is a slow build-up of anxiety that starts from the moment you purchase a ticket. On top of fumbling through luggage, the casual traveler is also trying to keep each vital document on hand. The authenticity NFTs provide can help accelerate the creation of the digital passport.
Adding on to the digital passport application, NFTs could also potentially accelerate the use of digital documentation when looking for a service like a medical trip. For example, when looking for the perfect doctor who can help with your specific condition, you can request to see their diploma or their history of residencies. Instead of just relying on reviews or information in an online database, the NFTs of this information incites additional trust in the doctor-patient relationship.
From the moment the NFT craze caught fire in the past year, the subsequent “bubble” discussion immediately became part of the conversation. Will screenshots of tweets that are easily accessible by anybody continue to be sold for millions of dollars in the form of an NFT? Maybe not, but ultimately, that value is determined by the buyer. And as we know with physical art or even trading cards, for example, those values will always fluctuate.
However, looking outside the bubble of the monetary value of digital pieces of art or memorabilia, the authentication factor NFTs showcase could one day provide value for venues, travel and certain forms of documentation.