Hugo Feiler is a technology entrepreneur and co-founder of Minima, a fully decentralized Layer-1 device agnostic for DePin projects.
has been no shortage of headlines in both crypto and mainstream media decrying the death of non-fungible tokens (NFTs).
Although many image-based NFT collections have declined significantly in monetary value, the utility, innovation, and use cases behind the technology have remained and are multiplying. I believe that NFTs are now more important than when they first emerged as the heroes of the last crypto cycle.
Long gone are the days of non-crypto natives claiming they could just take a screenshot of an NFT in the mistaken belief that this would render it worthless. It is the utility enabled through the unique function of this technology that creates value, not just the NFT itself.
As the CEO and co-founder of Minima, where we’ve built a layer 1 blockchain capable of running a full node on any device, the NFT space is one I’m always watching closely and look forward to seeing develop.
NFT use cases
Any builder in the space should be aware of the range of possibilities that blockchain technology offers to projects and organizations. NFTs are not just speculative assets like some tokens. They are game-changing use case enablers.
Examples of these are many and varied and include the following:
Proof of Ownership
Each NFT has a unique identifier, meaning that one NFT is distinguished from all others. This can be used to indicate ownership and validate authenticity through stored metadata.
This proof-of-ownership capability lends itself to the transfer or value or assets between IoT-enabled devices or digital collectibles in online marketplaces.
Community Building and Engagement
NFT mining can enable a brand or project’s audience to enjoy exclusive access to perks such as loyalty programs, and allows developers unparalleled access to transparent blockchain-based data.
This utility is already appearing in the music industry, sports and beyond.
Empowering Edge devices
Through the use of embedded blockchain technology, critical data – in the form of tokens and NFTs – can be created at the edge of a device, rather than simply transferred to the edge of a network. This, among other benefits, improves data reliability.
In the motorsport industry, for example, this is particularly important. Every microsecond counts and the data must be absolutely reliable. Win or lose decisions depend on it. At Minima, we developed a complete blockchain node embedded in a racing vehicle. It worked by tokenizing data and securing it as it is generated, before it is transmitted in real-time for later use.
The Internet of Things (IoT)
IoT scaling is only possible with strong, efficient blockchain technology that can run on embedded connected devices: think toothbrushes, golf clubs, microwave ovens and more.
NFTs and IoT enjoy clear synergy through supply chain transparency, unique identifiers, secure data storage and ownership. NFT technology can enhance the IoT’s ability to scale quickly, efficiently and economically. This integration will also enhance device interoperability, enabling seamless communication and data exchange between various IoT devices, further driving the adoption of decentralized networks.
Decentralized Physical Infrastructure Networks (DePIN)
Through NFT-based physical assets and immutable digital records, DePIN projects can enjoy superior transparency and governance capabilities.
In areas such as decentralized energy networks or shared wireless networks, this technology can enable accurate tracking of asset contributions, usage and ownership.
The future of NFTs
These are just some of the ways NFTs add value to participants in the blockchain ecosystem, with opportunities constantly expanding as new blockchains are developed and different industries explore potential use cases. Even with these examples, it is clear that NFTs are not going away, but rather evolving in how they are used and perceived.
They will remain vital elements of the blockchain ecosystem, with significant potential for future growth. When considering NFTs, it is more productive to assess the long-term value they can bring, rather than focusing solely on the current lows of popular image-based collections.
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