The value of an NFT is directly related to its utility (or, in other words, its primary benefit of owning it). We have a lot of NFT projects out there but few NFT projects provide solutions to problems we encounter in our daily lives and will eventually be the ones that evolve this technology closer to mainstream adoption.
Until that moment arrives, it is important to have a macro overview of where NFTs stand today and which practical uses are attached to NFTs.
In my last Scallop Learn article series, I gave a comprehensive introduction to NFTs. If you missed that you can click HERE to read up.
Legal Documents & Authentication
In the society today, almost everything is getting digital. Digital documents, digital signatures, and online receipts have become extremely popular in the last decade. Blockchain and the authenticity of legal documents are a perfect fit and have a bright future if implemented correctly. The legal documentation will become faster, more efficient, and hopefully more transparent. ID documents such as passports and national identification documents become fully digital assets stored in the blockchain. In that case, it would be easily possible to link our identities to legal documents, for example, a marriage certificate in the form of NFT, which can be publicly seen by accessing your official digital ID.
Proof of Attendance
Proof of Attendance Protocol (POAP) NFT is a specific type of token that proves that you attended an event or experience in the physical or digital world. POAP NFT’s primary purpose is to prove that people participated in a specific academic course, a business seminar, or sessions, to name a few examples. Eventually, proof of attendance will become a common thing. We will apply it as a requirement to attend real-life events, where people might be required to scan their digital ID on their smartphones at the entrance of events. In return, they will automatically get a certificate of attendance airdropped to their wallet, as easy as that.
Governing & Voting
In many countries, the voting process is non-transparent and in some cases, corrupt. Voters must bring a photo ID and proof of residence with them when they visit the voting centers. NFTs can help eliminate this problem since they would provide a digital identity for people without physical documents that proves who they are and where they reside in the country. Having an official digital ID stored in the blockchain legally recognized by their municipality will facilitate the voting process and result in a more transparent voting system. NFTs will reduce fraud and serve as a record for those who voted.
Thanks to the blockchain, the creation of decentralized autonomous organizations (DAOs) has become very popular as a governing system. In a DAO, there is no central authority; instead, power is distributed among token holders who collectively cast votes related to a specific decision. This will become the norm to govern projects, companies, and even political parties where the direction of a project will be determined by a collective decision among the token holders of a specific organization. Looking down the line, governments might even be run as DAOs, becoming more decentralized, and the power will be distributed among selected people.
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