This year has been an incredible year for Non-Fungible Tokens (NFTs). The popularity started with digital collectibles and owning rare artwork in the form of tokens that sometimes sold for millions of dollars. From there, projects like Axie Infinity compounded the NFT hype by bringing utility through gaming.
Now as we reach the end of the year, we see metaverse projects take the spotlight, allowing users to purchase digital land and items. This is only one aspect of an NFT and its overall capability – there is a lot more to come.
For years, even before Ethereum existed, NFTs have been dominated by art, media, music, and collectibles. Many do not understand the technology and believe the tokens are only good at proving ownership of an image or media.
Many jokes are made regularly around how easy it is to ‘steal’ an NFT by just simply downloading the file associated with it. Now the internet is beginning to see videos and images of new use cases for Proof of Ownership and will flip many critics on their heads.
Proof of Ownership goes much further than digital media and has applications in the real world. Proof of Ownership can also be used for things like passwords, locks, shipment verification, and more. While we have heard of these use cases for a while, we have not seen any of them proven in real life.
In a post made today on Reddit, the user stands in front of their car taking out their crypto wallet to unlock it, the car was able to be accessed and even turned on. The NFT used is connected to ENS and proves ownership of the vehicle.
This NFT access has many crypto enthusiasts excited, looking forward to a future where an NFT automatically logs you into websites. No more endless passwords needed, just sign the transaction from your encrypted crypto wallet and you gain access. If the website was then hacked, the hacker would not be able to obtain any credentials as they are tied to the NFT, which the website cannot remove, only the user can verify the account.
Proof of Ownership has also started to spread into digital identities. Having a government social security number tied to an NFT would greatly reduce identity theft, as an identity would only be able to be proven by the NFT assigned to the person. If your NFT was ever stolen, it could easily be traced and modified to protect in a much easier way than an assigned social security number.
There is an incredible amount of utility coming to NFTs. While several people are spending their time trading collectibles and winning tokens with NFT gaming, serious development is happening in the background which could change many industries. It’s a good time to be researching NFTs and learning about who is building these different utility-based tokens.