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Non-fungible tokens (NFT) are an emerging technology that has already seen a ton of use cases outside the typical NFT application – which right now is mostly for trading artworks and game characters. In Britain, you can now use the blockchain to sue someone. A UK judge gave the go-ahead to serve legal documents — the process of bringing a lawsuit to a person's attention — over the blockchain ledger by nonfungible tokens (NFTs) for the first time, according to court documents made public this week.
According to Bloomberg, an NFT is a line of code on the blockchain that confirms unique certificates of authenticity. They're typically used to prove ownership of a piece of digital art.
The ruling comes from a case brought by Fabrizio D'Aloia, founder of an online gambling company, who's suing cryptocurrency exchange Binance Holdings and other platforms. D'Aloia filed the claim after his crypto assets were fraudulently cloned on the brokerages.
The court also ruled that the exchanges were responsible for ensuring stolen crypto is not moved or taken out of their systems.
NFTs can be used to ensure that the product you are purchasing is authentic. Since the blockchain can permanently store information about the product, checking for rarity and authenticity will soon be a thing on physical products too. NFTs can also be used to store information about the manufacturing process, ensuring that everything is fair trade.
NFT applications don't stop at consumer products either. There have already been numerous companies successfully using NFTs for industrial design prototyping purposes.
Luxury brands are now coming to the NFT space. The amalgamation of high fashion and blockchain has started to create a revolution in the fashion industry. The set includes physical assets like retail clothing and other accessories along with their digital companions as NFTs. The merge of technology like NFT and augmented reality with physical couture has unveiled a new line of digital apparel that will soon overtake industry enthusiasts.
Every day, there are 2 million people who play with the little blobs of Axie Infinity, which now has a valuation of US$3 billion. "Gaming is really exciting, as you already have billions of people who are buying digital goods inside of games," said Devin Finzer, CEO of OpenSea, the largest NFT platform. The reason we haven't yet seen an even wider adoption, said Finzer, is that "the development cycle is a little longer with games than with simpler arts and collectible projects. There's a little more of a delay." He imagines we'll see the fruits of these developments within a year or two.
Like an image file or video, you can also attach audio to an NFT to create a collectible piece of music. Think of it as a digital "first edition" of a record. Attaching a song to an NFT is similar to our art example, but there are other use cases.
A big issue for musicians is getting a fair share of royalties. But there are at least two possible ways to achieve a balanced outcome: blockchain-based streaming platforms and blockchain royalty tracking. Competing with Amazon Music or Youtube for streaming services is difficult for small blockchain projects.
Security: NFTs are stored on a blockchain platform where they are tracked and verified by the network. This makes them secure and difficult to forge.
Transparency: The ownership of an NFT is transparent and can be verified by anyone on the blockchain.
Fungibility: Unlike other tokens such as Bitcoin and Ethereum, NFTs are not fungible meaning that each unit is unique. This makes them perfect for representing digital assets like collectibles, game items, or real estate.
Portability: NFTs can be transferred between users easily and quickly. This makes them ideal for use in digital applications.
Decentralization: NFTs are decentralized and not controlled by any central authority. This makes them trustless and secure.
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