Global blockchain supervision and query platform

English
Download

Why NFTs Will Upgrade Everything

Why NFTs Will Upgrade Everything WikiBit 2022-11-27 19:52

NFTs have morphed from crypto-obscurity to mainstream talking point over the past two years, and it could be just the beginning

Most people associate NFTs with pricey artwork, digital collectibles, and incredibly expensive images of cartoon monkeys.

However, NFTs can enable a wide range of useful applications, from obtaining loans to using AI for interior design. They achieve this by fundamentally altering how people—not Big Tech—gain from their data. This is why:

  • Everything you care about is non-fungible.

  • Digital representations of non-fungible things are useful (and common).

  • Decentralizing these representations makes them vastly more useful to the end user.

Everything you care about is non-fungible

If two things of the same kind may be used interchangeably and cannot be distinguished from one another, they are said to be fungible. A fungible thing can be exchanged for another one that is exactly the same without losing any value, similar to exchanging one dollar for another.

Even while they are valuable, fungible assets like cash or gas are often only significant to the extent that they enable us to obtain non-fungible items (belongings, experiences).

On the other hand, something that is non-fungible is distinct.

This applies to everything you own, including your house, car, and even a cup of coffee. It covers your connections, physical appearance, and personal preferences. All of these things are non-fungible: credentials, reputation, memories, and experiences. Each is distinct and cannot be replaced by a similar alternative.

Even initially fungible things can change to become non-fungible. When a car is spanking new, cars of the same make, model, and year may appear interchangeable, but if you're buying a used automobile, you should absolutely assess the state of the particular vehicle. You might not care which cup of coffee the barista offers you from the same pot, but after the first sip, you probably won't want to switch.

Digital representations of non-fungible things are useful (and common)

Retailers keep track of their clients' purchases. This enables them to decide which warranties are applicable or to assist customers when something breaks. Architects and interior designers use blueprints to suggest solutions within the confines of a location. Health records are used by doctors and dentists to treat patients.

Digital representations of non-fungible objects are the foundation of many tech-enabled businesses. For content recommendations, Spotify, YouTube, Netflix, and GoodReads use user preferences as a model.

Real estate data is used by Zillow and AirBnB to assist buyers in finding houses and estimating pricing. Twitter and Facebook use relationship maps to fill their feeds. Specific seats for one-of-a-kind experiences are digitally represented by TicketMaster and StubHub.

While these digital representations enable platforms to offer services based on user data, they prevent users from directly utilizing that data. This maximizes platform value at the expense of the customer.

For instance, I am unable to automatically follow all of my favorite creators on Twitter using my GoodReads or YouTube history. I can't search for regional events on TicketMaster using my Spotify taste model. I can't utilize my house's plans to pick the right furniture on Wayfair.

Because these representations aren't standardized or portable, they vary from provider to provider and are incompatible with other services. Even if users could access this data directly, it wouldn't be particularly useful. The end user typically has no influence over who or what has access.

Users need ownership and interoperability for these digital representations to reach their full potential.

Decentralizing representations makes them vastly more useful to end users

Users get ownership of their data through decentralization, which allows them control over it. Interoperability is made possible by the removal of restrictions on data access put in place by centralized platforms. These characteristics enable whole ecosystems of data-driven businesses, improve the utility of the underlying non-fungible commodity, and open up new services and capabilities for end users.

Non-fungible tokens, often known as NFTs, are distinctively identifiable blockchain assets that are used to confirm ownership and authenticity. Off-chain assets like artwork, memberships, or real land deeds can be represented by NFTs.

An NFT is controlled solely by its owner because it is kept on decentralized blockchains rather than centralized databases. Despite the fact that the majority of NFTs in use today are visible to the general public, technologies like private NFTs and Zero-Knowledge Proofs are quickly offering owners more control over who can access their data.

Numerous new use cases are made possible by portability and ownership. A single NFT may, for instance, represent my house and include information on its blueprint, location, purchase history, current images, and other metadata. Several applications could be used with such data. I could use it to compute property taxes, find furniture that fits in each room, rent my house on online markets, or get a loan.

Additionally, NFTs can be merged to offer use cases that are not conceivable with siloed data. Experiences at the store can be tailored to reflect our unique preferences and physical characteristics. NFTs of our schedules, preferences, locations, and relationships can be integrated to automatically create unique events or set dates for each group.

A qualified service or add-on, such as insurance or integrations, can be found using information about possessions. The identification of professional or educational prospects across platforms might be based on credentials, availability, and interests.

New uses for AI are also made possible by user-owned data. In order to produce user-specific solutions, AI must process user data. For instance, Vana needs many images of the user's face to create a gallery of creative portraits; without such information, it is unable to create accurate portraits.

As AI develops in strength, it will need standardized user input to produce distinctive answers to distinctive challenges. Decentralizing this data encourages businesses using AI to provide highly customized solutions. There are a lot of possible use cases:

  • Interior design proposals based on the blueprint of your home, taste, and budget (including highly-custom AI-generated art!).

  • Educational content tailored to your knowledge, goals, and learning style.

  • Personalized recipes based on your health, tastes, and goals.

  • Wardrobe suggestions tailored to your size and style.

  • Personal AI assistants who know everything about you, your schedule, your relationships, and have full access to all of your data, but share none of it with anyone.

Startups are already building the foundations for many of these use cases:

Although there can be negative effects—we've already seen the echo chambers that can arise from highly tailored content feeds—a lot of this will be really positive. To prevent data from being read and duplicated without the NFT owner's consent, technological and legislative advancements will be necessary.

All of this data is already available, but it's important to remember that it's currently owned by platforms and service providers rather than by end users.

Were just getting started

All of the things you value are non-fungible. For years, businesses have padded their profit lines by employing digital representations of your non-fungible assets. These centralized players lack the motivation and organizational capacity to make these representations accessible to other data-driven systems.

Data is significantly more beneficial to the end user when it is decentralized. By regaining control over data and encouraging the creation of a wide range of new capabilities, NFTs improve the portability and accessibility of digital representations.

A proof of concept is JPEGs. It gets better from here.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

Wish to learn forex too? WikiFX is your best choice! Download Now!!

Disclaimer:

The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

  • Token conversion
  • Exchange rate conversion
  • Calculation for foreign exchange purchasing
/
PC(S)
Current Rate
Available

0.00