Ask CryptoVantage: What Can NFTs Be Used For Besides Art?

NFTs in the Insurance Sector

Insurance is one of the most interesting use cases for NFTs. Given the inherent problems in trust, value assessment, and value transfer that are intrinsic to insurance policies today, NFTs can be used to track these assets across different records.

For example, an IoT device that tracks shipping containers will require teams of people to go through stacks of paper receipts and risk losing their sanity in the process. Using NFTs can make it easier to track shipments from start to finish and even facilitate risk assessment.

As a corollary to the above use case, let us take a look at insurance for pets. If your beloved pet was accidentally killed by a delivery van while you were not around to supervise, the compensation that you receive is usually rather low as the insurances have little to no way of knowing if your pet existed. To solve this problem, you could theoretically represent each unique furry friend as an NFT and buy a policy for them with a reputable insurance firm. If one of your kitties met its untimely fate, the compensation will be on par with the NFT’s value. That’s an admittedly dark use case but it’s a way to streamline insurance in a way that hasn’t been possible before.

NFTs in Supply Chain Management

Supply chain management is another example of a friendly use case for NFTs. Since supply chains are not linear, orders can get mixed up or lost in the process. Using NFTs to track shipments and cargo ensures that your shipment will reach you, whether it be by boat, plane, or any other mode of transportation.

NFTs can be used to track shipments as they progress from the manufacturer to the consumer and vice versa. In this regard, one NFT could even contain information on a whole supply chain unit rather than just a single shipment. If you have ever watched action movies where shady operators attempt to smuggle weapons by hiding them in cargo shipments, you can think of NFTs as a technology that deters such activities.

NFTs in IoT Devices

The Internet of Things (IoT) is another interesting use case for NFTs. Currently, most IoT devices are not interoperable with each other, even if they fall under the same category. For example, some fitness trackers only work with Android phones, while others are compatible with iOS devices.

To solve this problem, NFTs can be used to create what is called an interoperable wallet. Put simply, each IoT device will have its exclusive private key, which is a unique identity that will allow other devices to make transactions within the domain of that specific IoT device type. This will allow IoT devices from disparate manufacturers to exchange information and other types of data without intermediaries and is a lot more efficient than using traditional means of communication and interaction.

NFTs in Governance Through Voting

Another interesting use case for NFTs is in governance through voting. In today’s world, votes are still carried out on paper ballots that can get misplaced or tampered with. Since the internet allows for voting from anywhere, it is possible to use a blockchain-based online voting system that will allow people to vote from their computers or mobile devices.

NFTs can provide the identity of voters and the ability to track votes over time without having any information be tampered with after it has been submitted. Such a transparent voting system will not only increase voter turnout but will also help to ensure that the ballots are not lost.

NFTs in Real Estate and Contemporary Art

One of the most important aspects of property ownership is keeping track of ownership records such as title deeds. Currently, this involves a lot of paperwork that can get misplaced, tampered with, or destroyed if the house in question is damaged in a fire or flood.

Using NFTs will give you real-time updates regarding your house’s ownership status and even allow other authorized entities like your insurance firm to access this information. Additionally, it will allow you to purchase an immutable title for your property, meaning that the history of the property is preserved in case any future changes need to be made.

Digital artworks aside, NFTs can be used to track the ownership of contemporary artwork as it changes hands from one collector or gallery owner to another. Just like with real estate, NFTs will give you a complete and immutable record that tracks information such as previous owners and sales prices, which is crucial for assessing an artwork’s value and authenticity.

NFTs in Travel

Travelers can also use NFTs to track their belongings should any of them get misplaced or stolen during their travels. With an NFT, your luggage will always remain safe without requiring you to label it with GPS tracking equipment.

The same goes for highly valuable items like laptop computers and jewelry. It is also possible to register your NFT with a smart contract that will trigger the release of funds should the item in question get lost or destroyed.

NFTs in the Fashion and Luxury Industry

Another industry where NFTs are useful is the fashion and luxury goods market. Many of these items can be very expensive, but they are often difficult to resell due to the lack of a third-party authentication system for verifying authenticity or previous ownership history.

As mentioned earlier, blockchain-based NFTs allow you to purchase an immutable title for your item, which will give you a record of previous owners and sales prices. This aspect of NFTs will not only allow owners of luxury fashion items to verify the authenticity of goods but also allow manufacturers to distinguish their products from knockoffs.

Conclusion: Digital Art Only the Beginning for NFT Technology

The advent of blockchain technology has brought about many changes in how economic transactions are carried out in the digital space. While cryptocurrencies have transformed traditional finance, NFTs are bound to transform ownership in several different industries.

An NFT allows anyone to track his or her possessions through an immutable record that cannot be tampered with by third parties. And should any of your belongings become lost or stolen, you can rely on the immutability of blockchain technology to track them down and ensure their safe return or at least verify ownership once found.

The digital art space and in-game collectibles are only the beginning of what NFTs can do. With the right combination of smart contracts and blockchain technology, NFTs can revolutionize an array of industries and make it easier for people to keep track of their possessions and transact.