How To Use NFT (Non Fungible Token) For Product Ownership And Authentication? – Critical Hit
Non-Fungible Tokens made their debut in the scene of emerging technologies in 2017, but it was only with the $69-million sale of a Beeple artwork in 2021 that they gained worldwide attention.
So far, NFTs have been mainly transforming the digital art industry, allowing creators to protect their copyrights and intellectual property rights. However, as a technology still in its very early days, much is yet to be understood about its true and full potential.
Nonetheless, one thing is for sure: NFTs are changing product ownership and authenticity as we know it today. For companies looking to secure their products through each step of the supply chain, NFTs can represent the key to an efficient and bulletproof end-to-end product authentication strategy.
Learn about the impact of NFTs on product authentication and ownership in this guide – or visit https://authena.io/security-seals/ to learn more about new use cases for NFTs.
What Is an NFT?
NFT stands for Non-Fungible Token. At their core, NFTs are a string of letters and numbers or a piece of code that acts as the digital representation of a physical asset. The original aim of NFTs was to enable the exchange of two or more items with unique, non-interchangeable values.
When these digital or physical assets with an attached NFT are exchanged, bought, or sold, each transaction is recorded and stored on the Ethereum blockchain. In turn, these records are easily traceable, immutable, and impossible to tamper with.
Today, NFTs are primarily used to represent the ownership of an asset and to enable certain crypto transactions. However, new use cases are found every day in industries like product authentication, membership exclusivity, and digital identity verification.
The Features that Make NFTs Unique
When it comes down to understanding the full potential of NFTs for product ownership and authentication, it is essential to review the characteristics that make them unique. These include:
- Unparalleled transparency and traceability of transactions recorded on the blockchain
- The standardization of protocols, which make NFT exchangeable on several different platforms
- NFTs can be traded openly and in a free market
- NFTs are liquid assets, meaning that they can be immediately sold for cash
- NFT transactions are immutable and impossible to tamper with (source