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Physical NFTs, a new trend on the market? | by Boopathikrishnan N | Dec, 2023

When most people think of NFTs, they imagine something within a digital framework. That makes perfect sense. But what can NFTs be physical about? Even though the conversation around NFTs incessantly devolves into “expensive monkey JPEGs,” there is much more to this technology than enabling the sale of digital images.

Physical NFTs

Why make a real NFT?

The creation of NFTs offers a number of advantages. Because of the way NFTs work, they are a great way to keep something online. Once an NFT is created, the existence of the NFT is effectively stored on the blockchain. And this NFT will remain indefinitely. Additionally, NFTs provide a higher level of security and transparency in online and sometimes offline transactions. These qualities of NFTs are why their use cases extend far beyond the digital realm. How is NFT suitable for real life?

NFT and art

In the art industry, this technology can be very beneficial for all parties involved. An issue affecting museums around the world is the question of compliant provenance. One particularly infamous example mentioned in the episode was an authentic Egyptian sarcophagus on display at the Met. It was looted during the 2011 Egyptian revolution and purchased by the Met for a staggering $4 million despite the lack of full certification of its authenticity. Significant progress can be made with NFTs in preventing bandits from selling stolen items. If someone with bad intentions tries to steal a physical piece of art, all a potential buyer needs to do to ensure authenticity is check its transaction history, provided it was previously created as an Nft marketplace development are a great way to ensure the smooth running of auctions of high-value physical objects, as they can also act as a unique, secure and irrefutable certificate of authenticity. This was the case when several objects from the famous Apollo 11 mission were auctioned for millions of dollars in early 2022. Without their NFT Certificates of Authenticity, this would not even have been possible, as the objects in question included a fountain pen and a switch. broken fuse In some cases, Web3 development companies develop technologies that allow users to “tokenize” virtually any physical object as an NFT using what is known as an NFTA Universal Microchip. In doing so, a new NFT art scene was created for strictly physical media artists.

The collectors market

NFT collections often come with several thousand pieces of varying rarities, but some people in the NFT space have approached buying, selling and trading NFTs as collectibles. NFTs don’t have to compete with physical collectibles. Several companies, such as Collect9, have also used NFTs as a way to digitise ownership of physical assets, primarily collectibles. Sports cards often sell for millions of dollars on the open market, giving owners the opportunity to ensure their items are safe. The concept of ownership is a hot topic in Web3. Through NFTs, users can purchase part of a high-value NFT, rather than all of it. For expensive NFTs like Bored Apes and CryptoPunks, this makes a big difference. It also makes these investments less risky. Physical artwork or rare real-life collectibles are still expensive, so crafting these items as NFTs can provide the same benefit to buyers.

NFTs everywhere

While the discussion so far has been mostly limited to the creation of unique, high-value physical assets or items as NFTs, all the potential applications of NFTs in the physical world don’t stop there. It is possible that NFT can provide essential utilities for all types of people around the world. For example, the Romanian government is considering converting government documents into tokens. In June 2022, Romania’s National Institute for Computing Research and Development, in cooperation with Elrond, announced that the establishment of an institutional NFT marketplace for Romanian citizens was underway. In this market, Romanian citizens have the opportunity to access, transfer and securely store official documents on the blockchain, such as NFTs. Finally, NFTs figure at the origin of the creation and ownership of digital assets, since everything is recorded in a decentralised public registry, everything is transparent and traceable, which improves data sharing between government agencies, reduces bureaucracy and improves the efficiency and effectiveness of public services.

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