Introducing Real-world Asset Tokenization of physical assets using NFT

April 04, 2022

Non-Fungi

Non-Fungible token (NFT) is undoubtedly one of the best tools for artists to showcase their talents directly to a mass audience. Furthermore, NFTs pave way for the collectors around the world to explore a wide range of collectibles.

Is NFT marketplace only for art?

Of course not! - The application of NFT is widespread and can be seen in fields such as music, gaming, sports, entertainment, and so on.

First of all, what does an NFT exactly mean?

NFT is an indivisible, unique token that represents the ownership of the creator over any real-world or digital asset. Anything can be turned into an NFT like a video, picture, gif, audio, etc.

What is the primary need of an NFT?

As we know already, non-fungible tokens act as an authentication certificate and help in tracing the owner of an asset. Blockchain technology helps in avoiding any counterfeit activities like duplication and false ownership.

Real-World Asset Tokenization

Tokenization is the process of converting an asset into a token (the tokenization of a physical asset is known as real-world asset tokenization).

What type of physical asset can be tokenized?

There is no limitation when it comes to tokenizing an asset because anything can be turned into an NFT. Here are some existing real-world asset tokenization use cases.

Antique Collectibles

Recently, NFT platforms have allowed people to explore various time-honored cultural goods worldwide. Additionally, a person can also buy ownership of an antique using real-world asset NFT.

The historic 17th-century Delftware tulip vase was represented as an NFT using 3D-scanning technology. Robert Aronson has created this with an Amsterdam-based startup tech enterprise, FloatScans, and a digital creator.

High-Value assets

Andy Warhol was a great American artist who created a ‘screen print of the Greek ruler Alexander the great’. The color print of this art piece with the signature of Warhol is now being auctioned as an NFT.

The original artwork will be connected with the real-world NFT, using which the buyers can trace the previous ownership details and more. This will improve trustability by providing transparency and authenticity.

Gold Mood Stone Ring

The original 14k gold mood stone ring was sold by Josh Reynolds as a real-world NFT. This 70’s sensation ring was paired with Mattereum smart contracts, thereby providing insurance, legally enforceable warranties, and physical as well as digital ownership of the ring.

Timmy’s Trumpet

A special trumpet belonging to celebrity DJ Timmy Trumpet is being auctioned as a trustable NFT bound with Mattereum Asset Passport.

Yeah right! We can also apply tokenization for musical instruments.

Meanwhile, a rare 17th century Joseph Guarneri’s violin will be the first high value and culturally important asset to be converted into a trustable NFT. The price of the violin is quoted as $1.6 million.

Fractional ownership using NFTs

The concept of fractional ownership is creating hype nowadays. The process of splitting the ownership of a single asset for multiple owners is called fractional ownership. We can carry out this process by providing Fractional NFTs (FNFTs) to the preferred buyers.

For instance, the fractional ownership concept can be applied to a real estate property. By means, a real estate asset will be sold, lent, bought, or leased using FNFT.

Collection and Investment in Wine

The wine collection is a popular hobby for rich people like LeBron James, Carmelo Anthony, and Dwayne Wade. Here, we can use NFT in two different ways.

The collectors can convert their wine bottles into nft and display them in a virtual exhibition.
Some collectors will have a cellar filled with rich wine bottles. In order to sell the wine, fractional ownership of their collection can be provided to multiple buyers.

What comes with an NFT ownership?

Apart from the physical and digital ownership of an asset, an NFT also provides the real-time geolocation of the asset linked to it. Using a scan code, the complete history and the details of the physical asset can be acquired.

The introduction of non-fungible tokens seems to be beneficial for unlocking an ocean of opportunities for both businesses and individuals. At present, the ERC-721 token standard is the popular standard used for NFT token development services. Eventually, NFT proves to be an undeniable field for the upcoming future!

Conclusion :

Schedule your appointment today to convert your asset into NFT through the best NFT Marketplace Development Company to gain a deeper insight into the NFT ecosystem and the various steps you can take to ensure a seamless experience, each out to the team at Blockchainfirm for a free consultation with our Subject Matter Experts.

Tags

#Blockchain #NFT #metaverse #altcoinwatch #etherum #Token

#physicalassetNFT #fractionalNFT #analysis #Markets

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