NFTs
Redefining Industrial Ownership and Innovation
Two years ago, non-fungible tokens (NFTs) captivated the world with skyrocketing prices and popular attention, but then the market recovered and many said NFTs were “dead.”
They spoke too soon. This technology continues to proliferate on a global scale, reshaping entire industries.
Even with the NFT market reaching sales volumes of nearly 200,000 NFTs worth over $191 million per day, it’s easy to dismiss them as toys of internet culture due to headline-grabbing projects like CryptoPunks It is Bored Monkeys.
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The NFT industry has spent enormous energy and resources to make this possible; building, testing and deploying some of the most revolutionary technologies to date.
Although some NFT markets are down more than 90%, it is a mistake to dismiss NFTs so quickly.
NFTs are a As, It’s not a What
What does it take to trade assets in a digital native environment? Property rights.
NFTs are just as we record who owns the rights to an asset. They can certify ownership and authenticity and come with many features of blockchains such as interoperability, secure transfer, and verification.
The NFT industry has created a revolutionary property rights system that is available 24/7/365 to anyone, anywhere, at a fraction of the cost of traditional systems, and gives exclusivity to any asset, including digital files.
O what being bought, sold or transferred are the rights to an underlying asset linked to the NFT. The assets and rights that can be transferred are virtually unlimited.
NFTs are a global property system that is changing what is possible and reshaping existing industries.
Digital Art and Collectibles: NFTs provide artists and intellectual property holders with a means to create a demonstrably unique or distinctive digital item, opening up new avenues for monetization. The holder of an NFT receives rights that can include ownership, use, and resale of the digital work.
For example, Best shot in the NBA has created a blockbuster marketplace where fans can buy, sell and trade officially licensed NBA video highlights, enabled by NFTs that verify ownership and exclusivity.
Stocks and bonds: The financial world is also embracing tokenization. NFTs offer more efficient and accessible marketplaces for traditional financial instruments, with transparent ownership and instant settlement.
Carbon Credits: NFTs that represent a specific amount of carbon dioxide emissions offset can be easily tracked from creation to retirement, ensuring the authenticity of carbon credits and helping to combat climate change while adhering to regulatory standards .
NFT technology is also revolutionizing music, video, box office, gaming, trade finance, luxury goods, identity, private credit, AI, physical goods and even vehicle registrations.
NFTs redefine what is possible through verifiable global ownership and authenticity. In the early days of the Internet, we didn’t know the extent to which accessible communication would transform the world, and it has had a profound impact on every industry.
NFTs are reshaping the world with the same transformative power, creating unprecedented innovation and economic possibilities.
Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.