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NFT in the insurance industry
Insurance is one of the most interesting use cases for NFTs. Given the inherent issues in trust, value valuation, and value transfer that are inherent to insurance policies today, NFTs can be used to track these activities 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 NFT 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’s take a look at pet insurance. If your beloved pet was accidentally killed by a delivery van while you weren’t out and about supervising, the compensation you receive is usually quite low as insurance companies have little or no way of knowing if your pet existed. To solve this problem, you could theoretically represent each unique furry friend as NFT and purchase a policy for them with a reputable insurance company. If one of your kittens met its premature fate, the compensation will be on par with the value of the NFT. This is certainly an obscure use case, but it’s a way to simplify insurance in a way that hasn’t been possible before.
NFT in supply chain management
Supply chain management is another example of a friendly use case for NFTs. Because supply chains are not linear, orders can be confused or lost in the process. Using NFT to track shipments and goods ensures that your shipment reaches you, whether it’s by ship, plane, or any other means of transportation.
NFTs can be used to track shipments as they move from manufacturer to consumer and vice versa. In this regard, an NFT could even contain information about an entire supply chain unit rather than a single shipment. If you’ve ever seen action movies where shady operators attempt to smuggle weapons by hiding them in freight shipments, you can think of NFTs as a technology that discourages such activities.
NFT 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 into 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 own unique private key, which is a unique identity that will allow other devices to transact within the domain of that specific IoT device. This will allow IoT devices from different manufacturers to exchange information and other types of data without intermediaries and is much more efficient than using traditional means of communication and interaction.
NFT in governance through voting
Another interesting use case for NFTs is in governance through voting. In today’s world, voting is still done on paper ballots that can be lost or tampered with. Since the internet allows you to vote from anywhere, you can use a blockchain-based online voting system that will allow people to vote from their computers or mobile devices.
NFTs can provide voter identity and the ability to track votes over time without any information being tampered with after it has been submitted. A transparent voting system will not only increase voter turnout, but will also help ensure that ballots are not lost.
NFT in real estate and contemporary art
One of the most important aspects of real estate ownership is keeping track of property records such as property deeds. Currently, this involves a lot of paperwork that can be lost, tampered with, or destroyed if the house in question is damaged by a fire or flood.
Using NFT will provide you with real-time updates on the ownership status of your home and even allow other authorized entities such as your insurance company to access this information. In addition, it will allow you to purchase an immutable title for your property, which means that the history of the property is preserved in case future changes need to be made.
Digital artworks aside, NFTs can be used to track ownership of contemporary artwork as it changes hands from one collector or gallerist to another. Just like with real estate, NFTs will provide you with a complete and immutable record that tracks information such as previous owners and sale prices, which is crucial to assessing the value and authenticity of a work of art.
NFT in travel
Travelers can also use NFTs to track their belongings in case any of them are lost or stolen during their travels. With an NFT, your luggage will always remain safe without having to tag it with GPS tracking equipment.
The same goes for high-value items like laptops and jewelry. You can also register your NFT with a smart contract that will trigger the release of funds in case of loss or destruction of the item in question.
NFT in the fashion and luxury sector
Another area 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 to verify the authenticity or history of previous ownership.
As mentioned above, blockchain-based NFTs allow you to buy an immutable title for your item, which will give you a record of previous owners and selling 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.
Digital art is just the beginning for NFT
technology
The advent of blockchain technology has brought many changes in the way economic transactions are carried out in the digital space. While cryptocurrencies have transformed traditional finance, NFTs are set to transform ownership in different industries.
An NFT allows anyone to track their assets through an immutable record that cannot be tampered with by third parties. And if any of your belongings are 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 they are found.
The digital art space and in-game collectibles are just the beginning of what NFTs can do. With the right combination of smart contracts and blockchain technology, NFTs can revolutionize a number of industries and make it easier for people to keep track of their assets and transactions.
