Non-fungible tokens (NFT) are a type of digital asset which can be used to represent ownership of a unique object. They are different from commodities and other fungible tokens because they have an intrinsic, digital scarcity.
Owners can transfer non-fungible tokens to other owners through a smart contract. The scarcity and ability to transfer them digitally are the main reasons why they are often seen as digital collectibles.
However, NFTs are more than just collectibles. They represent ownership of something that cannot be duplicated and it is precisely this characteristic that can be used by organizations.
Blockchain technology has become an important part of many companies' business strategy. Driving this trend are the advantages that blockchain offers over traditional methods of data storage. This includes immutability, decentralization, and transparency.
Companies are increasingly using blockchain to secure data records and transactions across their organization. This is because blockchain provides a single source of truth for all interactions between various entities within an ecosystem. This reduces the potential for fraud, errors or theft since all transactions on a Blockchain are immutable and verified by the network rather than a single party.
Some of the most famous examples of companies using blockchain are IBM, Walmart, Kroger's, Nestle's, Unilever's etc., who have announced collaborative work on projects that will use Blockchain for food safety tracking, supply chain management and digital trademarking.
There are many use cases for blockchain technology in the enterprise sector. One of the most promising applications of blockchain comes from Enterprise Non-fungible tokens (ENFT). These Enterprise NFTs can be used to represent ownership and track assets through systems such as ERP, SCM and CRM software. It can also be used as a way to verify the authenticity of a product, record ownership rights, register trademark information and manage business critical data.
Enterprise Non-Fungible Token (ENFT) are digital tokens created to solve the problems of supply chain, manufacturing, and many other industries.
Enterprise Non-Fungible Tokens are used to track goods, services, and assets across multiple organisations. They are best suited for use dealing with complex landscapes where several different companies and consumers are involved. ENFTs improve transparency of these complex processes.
ENFT technology uses an immutable ledger that stores all transactions and records in a decentralized database for easy access and auditability. This can be a common blockchain like Bitcoin or DigiByte, but it can also be done through semi-private blockchains. The ENFT tokens are mainly used to track, verify, and authenticate each asset along its entire lifecycle.
Blockchain technology has been disrupting the way business is done. It has been a great innovation that provides transparency and features that ensure security of data. The next step for blockchain technology would be to offer enterprises a way to tokenize their assets, allow them to interact with other companies and consumers in new ways.
The supply chain is full of important events and consumers are increasingly interested in where products come from and how they’re made. Consumers are increasingly interested in the social responsibility a company takes in the supply chain and expect clear and accurate information from companies on this. Enterprise NFTs can be used to improve transparency and accountability. The way this can be done is by creating an ENFT record every time an important event in the supply chain takes place. These records can then be shared trustlessly with third parties.
The advent of enterprise NFTs and the adoption by major industries will give rise to an ecosystem of partners, applications and stakeholders. This ecosystem will enable enterprises looking for increased transparency and efficiency in their supply chains to adopt NFTs in order to increase operational visibility, automate workflows, and mitigate risk.
NFTs can be used to track products through their entire lifecycle. From raw materials to production and distribution, it is possible for an NFT token to exist within all stages of this process. This ensures that there are no conflicts with licenses or copyrights at any stage in product life cycle management.
As discussed, Enterprise NFTs hold a lot of promise when it comes to supply chain. But that’s not the only situation where their use is extremely important.
We identified several key markets where blockchain technology can have the biggest impact.
The insurance market suffers from fraud every day. Things like ghost claims twist the truth and are a common problem for insurers. Enterprise NFT technology can provide an accurate record of claim events like car crashes and provide proven ownership of insured goods.
Enterprise NFTs provide an immutable record that can’t be doubted. When it comes to IP and copyright, having a record of when you made something can be extremely useful in the case of infringement. This application can also be very useful for brand protection.
The legal and law industries deal with very sensitive and valuable data every day. Whether it is a notarial agreement or evidence in the court of law, keeping a proper record of authenticity of the data, where it came from and when it was recorded can solve many problems in this industry.
When dealing with complex systems or construction processes, inspections are key to provide safety and accountability. Inspection records can use Enterprise NFT technology to create an immutable record of an inspection being executed the right way.
We have to give a special mention to the Metaverse. This very recent term stands for a new world where the physical and digital come together through technological solutions like AR, Mixed Reality and Virtual reality. The use of Enterprise NFTs in this space can serve as a way to represent ownership of something in the physical world and display it in the digital world. Practically, this means that you can own the same designer shoes in the real world as in the virtual Metaverse.
In a nutshell, enterprises should consider using enterprise non-fungible tokens for their businesses and products because it will help them establish a clear identification of who owns what, which will allow them to track how the assets are being used.
Enterprise NFT is a technology that can be used in any industry - from luxury, fashion to media industry. NFTs help enterprises to create a secure ecosystem for their customers and products and can help you protect your brand and supply chain.
At LifeHash, we use Enterprise NFTs in most of our solutions. Are you curious about how we can help you, or do you want more information about blockchain and NFTs? Don’t hesitate to contact us.