NFTs Beyond Art: Tokenizing Real-World Assets for Global Accessibility
October 12, 2023
NFTs and Real World Utility
The tokenization of real world assets through NFT technology has started to become more commonplace and it has revolutionized how we view NFTs in the industry. Some of the most common examples include the tokenization of real estate via fractional ownership and the ability to offer proof of ownership of real-world assets. Projects like Palmyra DEX are even working on the tokenization of commodities, such as tea and gold.
The tokenizing of real world assets can assist business owners in digitizing their work in a globally accessible way. NFTs are able to leverage their own technology (proof of unique ownership) with smart contracts to securely authenticate the purchase of tokenized assets, thereby reducing the potential of scams.
One unique feature of this technology is that it has the ability to significantly expand the reach of market access. It has the potential to foster communication and collaborative partnerships with people all around the world in an instant. With internet access and a computer or smart device, NFT technology can immediately connect businesses to the market and offer tokenized assets to customers.
NFTs are also vital to the new age of trade financing. In a recent article about NFTs and real world assets, the authors state that:
“When it pertains to trade financing, NFTs can be utilized to increase the process’s efficiency and security. An NFT may, for instance, represent a particular shipment of products. This use case facilitates the monitoring and authentication of an item throughout the supply chain. Important trade finance data, such as certificates of credit and invoice information, can be effectively embedded into the token. This creates a permanent record of the trade. It serves as evidence that is readily accessible and verifiable by all parties involved. In turn, this facilitates the streamlining of the trade process, thereby reducing fraud and enhancing the integrity of finance for trade transactions.”
NFTs have the potential to revolutionize the world when it comes to real world assets. Through specific utility, such as smart contract based transactions, fractional ownership, authenticity, fraud prevention, royalties, and much more, NFTs have the ability to bring a new transparency to the trading of commodities and other assets. With ErgoHack VII just around the corner, what sorts of NFT tooling and products would you like to see developed on the Ergo blockchain?