We’ve had ICOs, IEOs, DeFi, and now NFTs have become the new buzzword in the blockchain space. What are NFTs (non-fungible tokens) and how is it that they are opening up a door to the most incredible value proposition where all kinds of assets can be digitized and tokenized in order to prove ownership and be traded with ease?
VIDT Datalink has really taken this value proposition on board and have recently integrated NFT operability into a new smart contract. Having recognized the value in ownership and provenance of certain assets, this can be a real game-changer for this cutting edge blockchain company.
NFTs are meant for gamers and digital collectors of manga artwork, right?
A bazooka that can fire shells full of molten metal that spray in all directions when they explode — and what’s really cool is that you are the only dude on the planet who owns it!
A blue cat with green stripes and some big fat smug look on its face that says “I’ve just been sold for $100,000+ in ETH to my next owner.”
A NFT featuring a portrait of Bitcoin inventor Satoshi Nakamoto (do we know what he looks like?) sells for around $131,000 at Christies — the first NFT to ever be sold at a major auction house.
All the above are perfectly legitimate examples of collectibles whose ownership can be completely verified through the hash on a unique NFT held on the blockchain. However, this is just the tip of the iceberg in relation to just how useful NFTs can become, and I believe we are just on the brink of NFTs becoming unique widespread holders of undeniable value in all sorts of sectors outside of just collectibles.
Enter VIDT Datalink
It seems V-ID have had their eye on NFT integration for some time now. The recent Kucoin hack gave the team the impetus and opportunity to implement their new smart contracts with B2B and B2C NFT functionality on the Binance Smart Chain. It can be said that V-ID is ahead of the curve with NFT integration into their platform, and they have big plans for utilizing the advantages that NFTs offer to their services.
V-ID have already proved the concept of validating and securing a unique physical object when they made history by validating the first of the grand masters on the blockchain — a Rembrandt owned by the Douwes Fine Art Gallery.
They also quite recently forayed into the world of luxury watches and on-boarded a client called Amsterdam Vintage Watches. With this client, every time-piece has features and markings that, together with all its certification, makes a unique fingerprint that V-ID anchors to the Binance Smart Chain.
V-ID have named their non-fungible token VIDTC. The “C” stands for “Claim,” given that the token gives its owner a claim on its ownership, whether that be a complete or partial claim.
Just like fine pieces of art, ownership of a desirable, high cost, brand name article such as a Gucci handbag, for example, gives the owner that sense of exclusivity that might set them apart from the crowd.
What about some high-end basketball sneakers endorsed by Lebron James that are part of a limited product line release? Or perhaps a line of jewelry by Cartier or Tiffany that is completely unique and highly sought after?
Generally, most high-end goods, such as fashion clothing, accessories, jewelry, etc. can be certificated and a fingerprint stored within a NFT, making it unique. If the owner wanted to sell the item, they would have legal proof of ownership, together with its provenance, in the identification records stored within the non-fungible token they owned that resides on the blockchain.
A way of tokenizing all stocks, so that their ownership can be proved, and they can be transferred much more easily than they are today, would be a huge step forward for this sector.
Paper stock certificates are very intricate these days and feature complex designs and swirls, pretty much like fiat currency — and we know how that sometimes goes…
However, a lot of stock certification these days is online. When you think of it, though, it’s still just a PDF and could be forged, perhaps even more easily than with paper. However, if part of the process of transferring ownership included transferring a non-fungible token with complete certification and a unique hash within it, then this would prove provenance and ownership beyond a shadow of a doubt.
So you’ve purchased your luxury accessory, your branded garment, or one of the myriad of items that would benefit from being rolled into a NFT and anchored to the blockchain; you aren’t even wearing/carrying your item and yet, when you walk into the store that you purchased it from, or any other store that is participating in the scheme, privileges start to kick in.
There are a number of ways this might work, but here’s a few: you’ve made your purchases and make your way to the register. There’s a long queue and you are faced with 10 minutes of kicking your heels. No problem. The NFT that is stored in a wallet on your phone is recognized by a shop device and you are ushered straight to a register, opened especially for you.
When you make the purchase, you find that 5% has been taken off the bill, all thanks to that NFT. You then make your way to the in-store cafeteria and order a coffee and cake. Once again, 5% is taken from the overall amount of the bill. You leave and go to another store which is participating in the scheme. Rinse and repeat.
In the arena of fraud and manipulation, the fraudsters are always looking for that elusive attack vector, a flaw in the system that they can exploit. Paper documents are copiable and PDFs can be copied. However, a unique fingerprint stored in a non-fungible token can hold documentation, scans of all features and markings, and a complete history of provenance.
It makes the physical item linked to the NFT one of a kind and holds undeniable proof of its legitimacy. V-ID is creating an impenetrable fortress around your data, files, and physical property. This is just the beginning, and I can see many further use cases coming to light in the near future.