Asset tokenization is the future, many crypto industry experts are sure of it.
Tokenization or digitalization of assets is a trend of the near future, which opens up wide business opportunities. Whether it’s a big business or a single person, for example, a freelancer. Any company tries to automate and optimize many processes, make them safer, simpler and more accessible, but at the same time cheaper. Previously, this was considered an impossible or difficult task, but with the advent of such a solution as NFT, it has become possible today.
NFT (non-fungible tokens) are unique digital items whose ownership rights are recorded in the blockchain. As you know, blockchain is one of the most secure technologies today. Simply put, a record that has appeared in the blockchain cannot be changed, deleted or forged in any way. If the documents for the ownership of your apartment are digitized and transferred to the NFT, it will no longer be possible to change the information in this document without your knowledge. In this way, you can tokenize almost any asset: collectibles, event tickets, domain names, shares, ownership of real estate, cars, documents or contracts with partners, and much more.
One of the most famous and expensive collections of NFT Bored Apes
How does it work in practice? NFT, if you delve into the details, is a smart contract or a smart digital contract in which key data is recorded. This data can change only under certain conditions.
Some well-known watch brands provide a personalized certificate to the buyer for a lifetime warranty. That is, thanks to this certificate, it is known who and when bought this watch, and also that it is the original, which will be repaired in case of a breakdown for free. An attempt to steal this watch and impersonate the owner makes no sense without a personal certificate. Such certificates are already issued today in the form of NFT. By purchasing a product, you confirm your right to own it. Also, thanks to the technology of non-fungible tokens, you can be sure that you bought the original, not a fake.
In fact, it is possible to use NFT in any kind of business, of any scale. The methods of using NFT are limited only by imagination. The question is, how can a business implement this?
Before creating an NFT for business, it is necessary to clearly understand for what purposes the token will be used and what benefits the user will receive. In particular, in the case of the sale of real estate, all supporting documents and data on former owners can be digitized and translated into NFT format. This solves the problem of document forgery, when, for example, one house is sold twice to two different people. Since all the data in the blockchain is public and transparent, any attempts by scammers to cash in on you or your customers will be meaningless.
There are various platforms for the release of NFT, they have their advantages and disadvantages. The main thing, when choosing a platform, is to carefully familiarize yourself with all the information and be very careful.