A decade ago, no one would have thought we would spend millions on buying assets that are only seen digitally.
Blockchain technology has taken the world by storm in the last few years. Along with technologies, art is also considered important in the blockchain. That’s how non-fungible tokens (NFTs) came into existence. Art, music, physical assets, and collectibles are gaining power through such mediums.
With the digital NFT boom, physical NFTs now also have various benefits. A sense of owning something rare and authentic is what incentivizes people to buy an NFT.
NFTs have the potential to become more than just digital assets. Physical asset NFTs are tangible asses that are presented to the holder in the form of a physical benefit. This token takes up the custody of a physical asset. These physical NFTs can be resold as other NFTs. In such cases, the physical asset will be transferred to the new buyer.
With NFTs and blockchain-based supply chains, authenticity can be upheld for both digital and physical assets since all these NFTs are maintained on the blockchain by proof of authenticity architecture.
Counterfeit digital assets can be identified via tracking, but physical products cannot. For example, you can easily find a duplicate of Leonardo Da Vinci’s Mona Lisa painting or pirated versions of books anywhere. To control and cut off this market, blockchain is slowly gaining control of assets through NFTs and supply chain management.
Counterfeiting in India
According to an ASPA Report, ‘The State of Counterfeiting in India 2021’, counterfeit products are majorly found in five sectors. (Pharmaceutical, Currency, Tobacco, FMCG, and Alcohol). It is thus evident that most counterfeit products can affect consumers' health.
Several other sectors like software, electronics, and fashion also struggle with the sale of fake products. Fashion counterfeiting has become way more normal in the name of thrifting. The use of blockchain in India will certainly reduce the circulation of these fake products like in other countries.
How Blockchain Eradicates the Usage of Fake Products
Despite government measures to minimize counterfeiting, such products are still sold more than original products in many sectors. Brands are concerned about this and are looking for a solution.
Blockchain technology minimizes this issue by introducing promising ways to encourage the sale of original products:
Blockchain brings in proof of originality by tracking the products' provenance. Buyers can thus cross-verify physical or digital products on the blockchain. As the Blockchain data are immutable, there is no chance for an outside source to hack in and add or modify data.
To resolve the swapping or leaking of data related to physical goods, institutions are using blockchain-based supply chain management mechanisms like Vechain. These supply chains add QR codes and RFID tag-linked data to the blockchain in real-time, which makes products trackable and secure.
Several industries use blockchain services to ensure that buyers are utilizing authentic products.
These reasons make blockchain more trustworthy for both individuals and organizations while trading goods.
Real-World Use Cases of Blockchain Products
NFTs have become a more prominent asset in blockchain after currencies. Owing to their transparency, authenticity, and rarity, the use of NFTs has been growing ever since their inception.
Along with the digital storage of value, physical value storage is also increasing with NFTs. Brands are bringing their products into the NFT space to maintain quality and reduce fake assets. This way, they can sustain the brand's secret sauce, like Coca-Cola’s secret formula.
Art Art was the first popular form of NFTs with PFPs, digital art collages, images, posters, GIFs, etc., being created. The data is sold to the buyer, and buyers can use digital art as a store of value. Many of these digital images are sold in millions:
The merge collection by PAK
The first 5000 days by Beeple
Several Crypto Punk NFTs
MusicLike digital art, Music NFTs are also all the rage in the NFT space. For creators, this is beneficial in gaining a genuine fan following. On the other side, buyers are now able to connect with their favorite artists closely. Rappers Nas and Snoop Dogg are a few of the early adopters of music NFTs. Snoop Dog's NFT offers various benefits like digital merch and exclusive concerts.
NFT CraftingGaming NFTs are becoming more popular nowadays. Play-to-earn games offer various NFT craft features to make unique items for their players. Some players in this space are ZOOKEEPERS and CryptoBlades.
Due to the flexibility of NFTs, brands with the right vision of utilizing blockchain technology can mint their own NFTs. Industries are thus slowly adopting blockchain-based physical NFTs to ensure authenticity:
Adidas' Into the Metaverse, launched in December 2021, enables exclusive access to wearables in the Sandbox. Additionally, the NFT holders receive four exclusive physical products.
Le Jardin Retrouvé, a 4-decade-old perfume and fragrance brand, launched a perfume that is based on blockchain. This guarantees the product will be received with an authentic formula. Several luxury brands like Byredo offer unique customized aromatic fragrances to buyers in the form of NFTs. These customized NFTs are also used as souvenirs and collectibles.
Patrón, a Tequila brand by Bacardi, launched an NFT which provides premium access to a limited-edition Bottle of Charmain’s Reserve.
WaxPool Hotels & Resorts is offering NFT souvenirs to their visitors who stay at their resorts.They have partnered with a blockchain in India, BIT (Beyond Imagination Technology), to reward their visitors.
The emergence of blockchain technology is providing several solutions to various issues. With proper awareness and the right supply chain architecture, niche products will undoubtfully tackle the counterfeit market.
The decentralized ledger of blockchains allows the product data that entered the blockchain to be visible to the right people. Further, as the demand for the provenance of assets grows, visibility and solutions through blockchains will be improved.
Be it either organizations or individuals - blockchain technology will immensely benefit the end users. From cost reduction to maintaining genuineness, blockchain adoption serves as an aid in better product consumption.
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