A digital token allows someone to put it out in the marketplace and sell it or pieces of it. NFTs have no physical representation. But in terms of a blockchain, it’s something in a digital wallet that represents that token, which would be secured and stored, and no one else would be able to access it.
NFTs have made a splash recently ever since the artist Beeple generated buzz for selling an NFT of his digital artwork at a Christie’s auction for more than $69 million. Although anyone can download this digital artwork, thanks to NFT, the new owners have bragging rights to its digital verification on the blockchain, meaning they own the authentic original version from the artist.
It isn’t the artwork that is beinWhile NFTs right now mainly play in the consumer space, there is a very large movement to apply NFTs to enterprise applications, especially in things like intellectual properties and the aforementioned patents. It’s something I think will have much bigger application over time.
There are companies with massive patent portfolios that in many cases are not doing much for them from a financial standpoint, he said. Those assets can be tokenized, licensed, bought or sold. A tokenized license is “creating a more efficient way of making a liquid and sellable and tradeable.
This addresses a real need enterprises have been trying to figure out, which is how do they monetize some of the assets on their balance sheet? Wester said. From an enterprise standpoint, I think that will have very big implications. Especially now that we know how to do it.
We anticipate seeing NFTs being applied to enterprise assets in the next one to two years. In five to 10 years, the prediction is they will be used as a standard business practice. What will push forward is the idea that once you begin to tokenize some of these assets you begin to realize real value and liquidity.
Imagine NFTs expanding to represent ownership in real estate and company equity.
There’s a whole lot of tech questions about building these tokens as well as the marketplaces, what the protocols should be and the risk, security and governance, he said. Organizations also must address how they will ensure what they have tokenized is valid in the real world.
While the patent world is relatively straight forward, the idea of tokenizing a patent portfolio is recorded on the blockchain, it’s the owner of the token
NFT TRUSTED 