PROxID is an innovative fast-growing software development company headquartered in Naarden, the Netherlands. PROxID offers professional blockchain and NFT solutions, Zero Knowledge Proof (ZKP) and Customer Compliance software developed with best-in-class technology. Our solutions and software are applied worldwide in various sectors.
Digital Value products as NFT
NFTs are most commonly associated with the art world, but NFTs are also issued and sold as a digital representation of off-chain valuable assets such as collectibles, antiques or even consumer goods. Here, NFTs can act as an ownership guarantee for a real, physically unique item of which you, as a buyer, would like to have a guaranteed proof of ownership. In short, a physical NFT is a non-fungible token linked to a physical object. Ultimately, physical NFTs, like all other non-fungible tokens, can be sold or redeemed for the physical item to which it is linked. This offers opportunities in a wide range of industries where safety, trust, value, uniqueness, security and reliability are required. Think of financial services, real estate, healthcare, law, etc.
Digital property rights
Ownership will be as important in tomorrow’s virtual realities as it is today in the real world. NFTs will provide digital property rights to billions of people. That ownership will include both digital and physical goods and information of all kinds, including the private data you generate but over which you have no control today. With property rights to such goods (especially data), people will gain economic freedom. When the benefits of economic freedom become sufficiently clear, the ownership of one’s data will be declared a human right, which will cause a shift in global policy approaches and lead to more equitable systems in all forms. Closed data networks will be a thing of the past as decentralised networks become the basis for all public data structures.
Physical NFT use cases
NFT technology enables companies to create valuable digital assets that are programmable, unique and liquid. Innovative digital features can be built into the NFTs such as a value from a company’s or industry’s ecosystem. This value is exclusively available to NFT holders. This exclusive value is also liquid because the NFT can be exchanged using blockchain technology.
NFTs can be used, among other things, to digitally represent a physical good in a supply chain with reliable data of origin, immutable product data, etc. This creates a digital twin model. This can be valuable in supply chains where products have to pass through many jurisdictions and many controls. Reliable and efficient interactions between parties are crucial when it comes to profit margins in the supply chain industry.
The sale of real estate through financial institutions is a cumbersome, bureaucratic and often still paper-based process. NFTs provide unalterable proof of ownership with data of origin and real-time interaction. This technology can speed up the real estate sales process, introduce liquidity and reduce the risk of deed fraud.
E-commerce goods can be represented by or accompanied by NFTs with digital functionality such as authenticity verification, provenance data and loyalty benefits. This not only reduces fraud but also opens up new avenues for consumer engagement. Luxury goods and limited edition items are particularly suited to this.
Intellectual Property and Licensing
Intellectual property that is irrefutably registered as an NFT is easier to exchange, trace and issue than the current traditional forms. All owners of intellectual property, their licences and conditions are visible on the blockchain. This unalterable ‘ledger’, the source of origin, makes violations and fraud easy to identify. NFT intellectual property can lead to an open market for venture capitalists to buy patent rights from startups and innovators.
Qualifications and Credentials
Qualifications and credentials fraud, theft and forgery have long plagued the education sector. The advent of online learning has only made it harder to prevent fraud. With NFTs, an immutable list of certified holders can be recorded on a blockchain, making it easy for employers or educational institutions to monitor and spot qualification fraud. As online education grows due to the COVID-19 pandemic, NFTs can help create new industry standards for digital certification.
NFTs can represent an individual’s unique digital identity, which is stored immutably in the chain. This reduces identity fraud and enables exclusive digital functionality for the identity owner. On a blockchain, the identity is linked to a digital wallet. All transactions on the blockchain of that identity are traceable, making NFT identity management possible for e.g. intellectual property, diplomas and certificates, software licences or valuable physical products, etc.
NFTs can entitle the holder to financial benefits in insurance. NFT reinsurance rights can be sold on secondary markets where all parties benefit from the immutable transaction history. This prevents fraud. Insurance holders benefit from less bureaucracy, lower premiums and more liquidity on secondary markets.
Event management and especially ticketing are emerging business applications of NFTs. NFTs offer new forms of customer engagement, improved digital ticketing and additional revenue streams. Blockchain-based ticketing reduces ticket fraud and enables its own secondary market. Not only does this discourage black market ticket sales, but it also enables revenue from transaction fees. Tickets as non-fungible tokens are tradable assets that can also be considered collectibles and increase in value over time. NFT tickets also offer opportunities such as collecting and combining tickets for exchangeable prizes. This extends to loyalty benefits, lottery, free giveaways and gamification.
Contact us if you want to know if our NFT applications are suitable for your company ambitions!
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