Blockchain technology is still in its infancy, but its applications in the physical world are increasingly taking shape. Not only is the technology revolutionary, but what is the influence of the NFT infrastructure on blockchain technology?
Find out in this article what the possibilities are and how these NFTs can have an impact on almost all aspects of society. Although we are not yet that far with these developments, it is always worth looking into the future. Are you ready for the future?
Blockchain Technology in a nutshell
Blockchain arose in response to the increasing centralization of governments and companies. Transactions and information transfers take place in a decentralized manner, where they are checked and validated by the network. No use of central organizations, but a peer-to-peer network. Everything is recorded on the blockchain and is completely immutable. After approval based on the consensus algorithm, this chain is further expanded with the next ‘block’. This technology has three cornerstones, namely:
- Decentralization
- Security
- Scalability Blockchain
Applications In Blockchain
goes much further than trading different cryptocurrencies. Based on the cornerstones, all trading can take place in such a decentralized network. These transfers and transactions are monitored and logged throughout the network.
But nevertheless, these currencies are fungible here. This means that no certificate of ownership is tied to the digital currency you send and/or receive. By adding NFTs to this blockchain infrastructure, it will have many more uses, including in the physical world.
The possibilities of NFTs
A non-fungible token, better known as an NFT, has many possibilities. Contrary to popular belief, NFTs are much more than digital art that trades at record prices. In theory, an NFT is a unique asset on the blockchain. Everyone in the network can see who the unique owner of this digital asset is.
With this angle, really anything can be an NFT. The non-fungible aspect gives the blockchain a whole new dimension. Think of the possibilities that these NFTs have in the development of the metaverse, but these NFTs can also have a major impact on the physical world. Each NFT is not only unique but also has digital proof of ownership.
An important part is smart contracts. This is an automated contract that is compiled in the source code. These are completely transparent to the entire network and thanks to these smart contracts, the NFTs are also recorded on the blockchain. This process is irreversible. This, in combination with the transparent character, offers opportunities in almost all domains of society.
Financial market
The financial market is most under attack with the development of blockchain and crypto. While we have always attached great importance to banks, we now en masse realize that these banks are no longer necessary. For years we entrusted our money to central parties who managed our assets in-house. The past has shown us that this blind faith was not always justified. The use of NFTs will also be more revolutionary here:
Automation
A large part of the population has a job in the financial sector. From validating transactions to providing financial advice. A lot is still done completely manually, performed by individuals. While this isn’t so bad, mistakes are made quickly.
Nobody is perfect and making mistakes is human, but when this happens in a financial market the consequences are often incalculable. We could avoid this whole scenario by using NFTs.
If we place every file as an NFT on a blockchain, these processes would be automated based on data on the blockchain. This data is then approved and recorded by the network based on the consensus algorithm. As a result, human errors are no longer possible. Authorized persons can also consult and view this financial file, which exists as NFT on the blockchain.
Fraud prevention
Keeping everything completely transparent and decentralized on the blockchain using NFTs is also accompanied by increased collective control. The entire network can consult the specifications of this NFT. In principle, all information can therefore be included. Let’s take the Netflix sensation Inventing Anna, where she, as it were, scams the entire American elite with numerous excuses and lies.
When we record all personal data as NFTs on the blockchain, as well as the financial backgrounds, such fraud cases can no longer occur. In no time Anna would be exposed by both her friends and the New York elite.
Theft
Physical shopping is happening less and less and all too often we buy almost everything online. From clothing to gadgets to even furniture. But have you ever experienced that your sweet postman was just as excited about your package as you were and decided to keep the contents for yourself? But theft happens all too often, anywhere. But what after the theft?
It’s hard to prove that an iPhone is really yours, once it’s been restored to factory settings. In theory, we can also record all assets and new purchases on the blockchain as NFT, to show that this one item is really yours. Not only can the entire network verify the purchase, thanks to blockchain technology, but because the item itself is an NFT, it is immediately clear who the rightful owner is.
Education
Education also benefits greatly from the use of NFTs. We are going to evolve into an era in which everything is not only digital, as it is now, but where everything is also recorded on the blockchain. Your diploma will not only dust away in the cupboard, but as an NFT it will also be fully transparent via the blockchain.
You can also go further into this: you could say that each individual course unit is an NFT that you can only obtain if you pass your final exam. At the moment you can compose your CV yourself, but how much is true of someone’s CV?
Politics
In a democracy, we are massively dependent on our politics. Fortunately, we all have the right to form a society together on the basis of elections. But what happens after we cast our vote? It is difficult to understand that in 2022 these votes are still counted manually.
But not only that, during this manual counting, so much can go wrong and the election results can also be manipulated. With Donald Trump shouting loudly during the US election in 2020 that the results had been manipulated, it is difficult to verify this.
But what happens if we also digitize each individual ballot as an NFT? Not only are human errors avoided during the counts, but fraud is also not possible here. Everything recorded on the blockchain is immutable and completely transparent. There is much more clarity and transparency on a large scale.
Medical sector
The medical sector is indispensable in our society, but why is everything so cumbersome if you go to another GP or hospital? Let alone when you end up in a hospital abroad. Every individual has a medical file in which everything is kept.
Ranging from allergies to medical procedures you have ever had in your life. This information is passed on to your doctor to keep your file up-to-date at all times. But what if your file disappears during a computer hack? Years of medical records lost in an instant.
By storing your personal file as NFT on the blockchain, it is never lost. Doctors can consult your file, anywhere in the world. In fact, with a strong piece of artificial intelligence (AI), your medical record could be available in many languages, allowing doctors worldwide to consult your record. Although this technology has not yet been developed, it is conceivable that doctors can access your NFT based on a unique verification code and thus view your medical data.
Creative professions
With the development of web 2.0 and certainly with the evolution to web 3.0, there are many artists who work exclusively digitally. Think of graphic designers, illustrators but also videographers. You have undoubtedly seen the same photo or video several times on social media, but each time on a different channel. Especially in these creative professions, the NFT infrastructure is a powerful tool:
Intellectual property
Intellectual property is essential for these creative professions. It is a source of income for these artists while their work is all too often abused. This is important not only for great American musicians but also for small independents it is important to protect their own work and to guard their own intellectual property.
Plagiarism
Currently, anyone can create online. Instagram reels, videos on Youtube, Instagram filters, blog posts You name it. But because of this oversupply, there is also more and more friction. Creators accuse each other of plagiarism. It’s the never-ending battle of who was first.
Plagiarism has been happening since day 1 and these are often difficult issues that require a great deal of research. But what if we add all this content to the blockchain as NFT? In other words: from the moment you write a blog, you will add it to the blockchain as NFT where the network validates that I wrote this text.
From the moment someone else starts using this blog, it is easy to find out who the rightful owner of this intellectual property is thanks to the transparent nature of the blockchain. This can range from photos, and videos to even tweets. In a society where every day is consumed and created at breakneck speed, the use of this NFT technology has added value to the eternal struggle for ownership.
Criticism
The technology of these non-fungible tokens is revolutionary. Thanks to its digital and transparent nature, really everything can exist as NFT and it can solve many problems in society. But despite the decentralized and transparent character, the question is what the government will do with these NFTs in the future. Because everything will be tied to your digital identity, control by governments can also increase.
For the time being, these NFTs mainly consist of digital art and you can only find out who the owner is based on a wallet address. This is a unique address, with no further information about this person. But the question is: what if, for example, you also immediately get access to all personal data, but also the finances of that person?
Conclusion
Using NFTs as an addition to the blockchain structure has many advantages. It is not only about increasing control or transparency, but it is also above all a favorable way of storing information. This is of course fully digital and decentralized. Not only can your passport and driver’s license be an NFT, but also your diploma. There is no more loss of important data.
It is also possible that all this data is stored as NFT, but can only be consulted with a certain verification code. This way, their data is secured, but still stored on this public blockchain.
But isn’t an NFT immutable because it’s on the blockchain? Right, partly. An ERC721 token, the NFT token standard in Ethereum’s network is immutable. These are the digital pictures like the Bored Ape Yacht Club and CryptoPunks. You can’t just change it. You can, however, create an ERC1155 token, which is an NFT token standard that you can customize.
Think of a medical file or an ID card. You may update and update this information as needed. We must not forget that blockchain technology is still in its infancy. The above applications are therefore purely for speculation about the added value that NFTs can offer on the blockchain.
NFTs will play an important role in all of our lives in the near future, decreasing fraud and theft. Prepare yourself now and learn all you can about NFTs and even get involved in the world of NFTs today!
