A digital asset called an NFT, or non-fungible Token has particular metadata. Even though digital art and gaming have come to be associated with NFTs, there is much more that can be done. Any data can be permanently stored on the Blockchain via utility NFTs, where it is simple for anyone to view or verify it.
Let’s look at five scenarios where utility NFT Game Development Company might be crucial in the future.
NFTs are extremely useful in use cases ranging from voting to identity verification, upending multibillion-dollar economies.
What are NFTs?
Most people are familiar with cryptocurrencies like Bitcoin, Ethereum, and others. These cryptocurrencies are fungible, which means each Token is the same, just like any other kind of money. As an illustration, one Bitcoin is equivalent to another Bitcoin. Because you can purchase and sell them knowing their face value, they are valuable as cash.
NFTs are digital tokens that are stored on a blockchain and exchangeable between wallets, just like cryptocurrencies. But unlike cryptocurrencies, each Token has its metadata embedded. Digital artists, for instance, may link NFTs to a specific piece of their work. However, you can keep information about financial transactions or arbitrary identifying codes.
The Ethereum blockchain hosts the majority of NFTs, although a few other blockchains have gained popularity because they offer lower gas costs or can accommodate particular needs. As an interoperability protocol (sidechain) and framework built on top of Ethereum, Polygon, for instance, has gained popularity as a popular Ethereum substitute despite having a far cheaper price tag.
1. Checking for Authenticity
OEDC data show that around $3 trillion worth of counterfeit items, ranging from footwear to medications, are traded annually. The market for items tracked throughout the supply chain and allowing buyers to check their authenticity at the point of purchase is expanding.
Consider scanning a pair of Nike sneakers’ QR codes to view the product’s path from manufacture to a retail location. While creating a phony QR code and spoofing a website are simple processes, changing a blockchain transaction is not doable. Even better, you could give someone else ownership while documenting the transfer on the Blockchain.
2. Identity confirmation
According to Javelin, about 50 million people have their identities stolen annually, costing more than $56 billion. While two-factor and biometric authentication might minimize these occurrences, providing sensitive information when confirming someone’s identification is usually necessary when data breaches are at an all-time high.
NFTs may make it simpler for users to confirm their identity without providing personal information. As an illustration, the NFT platform from WISeKey is a trusted identity service that enables users to log in to various other platforms using an NFT. Users don’t have to sign up for multiple services or rely on a central organization, similar to a single sign-on (SSO).
3. Financial Exchanges
Decentralised Finance (DeFi) and NFTs have the potential to revolutionise the game in the finance sector, which isn’t exactly recognized for its cutting-edge innovation. For instance, the real estate sector uses deeds to transfer land and show ownership physically. NFTs may assist in digitising these records, and smart contracts may be used to manage escrow and other responsibilities.
A bank might also print an NFT with each account holder’s credit score and balance. So let’s say a customer wants to apply for a loan elsewhere. In that situation, the NFT might make it possible for a third party to confirm the person’s credit standing and income without revealing personal information or performing a hard credit check.
To unlock the value of real-world assets, for instance, and to enable lower administration expenses and greater financial flexibility, SolidBlock uses tokenization. Asset owners may easily tokenize their properties with SolidToken to generate capital, and shareholders receive a yield from rental income and liquidity through NFT marketplaces.
4. Voting on Blockchain
According to an NPR/Ipsos study, one-third of Americans think there was fraudulent voting in the 2020 election. Even though there is no proof of widespread voter fraud, the lack of public confidence in democratic activity is a serious issue both in the United States and overseas. NFTs and Blockchain technology may help to increase voter confidence in the future.
NFTs can be used as a digital form of identification that doesn’t need a physical document, as was previously discussed. To ensure that everyone has easy access to vote from any computer and to eliminate any potential fraud or cheating, voters could utilize NFTs to cast a vote onto a blockchain (visible and verifiable in the public record).
For instance, Voatz uses NFTs to make voting simple, safe, and available to everybody. Voters can effortlessly vote by associating their identity with their phone’s biometrics or PIN, and election administrators can easily allow highly-secure remote voting or run specialized polls to collect insightful and verifiable data.
5. Tickets for events
With the use of QR codes and personalised applications, most event tickets are currently electronic. NFTs may incorporate ticketing with memorabilia to produce a more interesting experience. Additionally, they may support event planners in maintaining contact with participants long after the event, which would benefit all parties.
The GET Protocol, for instance, makes it simple for event planners to print NFT tickets that can be traded as digital memorabilia. These tickets allow organizers to easily regulate the primary and secondary markets, capturing money that would have gone to scalpers and placing them in the hands of artists and performers instead of just engaging with attendees.
Conclusion
NFTs are often associated with digital art and crypto games, but they have much more potential than this. There are countless applications for non-fungible tokens, ranging from identity verification to safeguarding democracy. Additionally, an increasing number of companies are launching fresh products.
In terms of tax organisation, Risingmax Inc can assist you if you trade NFT Game Development or other crypto assets. Our technology automatically combines transactions from wallets and exchanges, calculates your capital gains or losses, and fills out the IRS paperwork you must submit each year. Additionally, we offer native support for NFT taxes under ERC-721. Start right now for nothing!
