An “Nft Chip” That Will Turn Real-World Luxury Items Into Nfts; Check Details

NFTs have gone far beyond just digital artwork and music. They can now represent practically anything from the real world too. This is possible thanks to innovations like the NFT chip by Americana Technologies, a company backed by Reddit founder Alexis Ohanian, rapper Future, and NFT marketplace, OpenSea.

Americana’s Ethereum-based ‘NFTA Universal Chip’ can simply be embedded into the objects they intend to tokenise. They are scannable and can reveal several details regarding the asset they represent. When users scan the object with their camera, they will be provided with the entire ownership history of the tagged object.

NFT chips can be used on collectables, luxury cars, artwork, and limited-edition items. By converting such items into NFTs, their authenticity can easily be proven at the click of a button.

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“When we talk about NFTs, there are images and songs and videos and all of these things, but the sort of lightbulb

Digital creators use NFTs to earn royalties every time their creation changes hands and finds a new owner. By transforming valuable items into NFTs, the same becomes possible for their creators and designers as well. It is helpful for creators who wish to be recognized and rewarded for their work without maintaining a digital presence.

“There are different use cases for transacting, and then sort of collecting or flaunting, I guess – like bragging. The average US household actually has about several thousand dollars in assets, and, for the first time ever, you can put all these things on-chain, and you can just sort of brag about all the cool things that you have in real life that already have enormous value, and already have enormous communities built around them, “said Frey in the same conversation with TechCrunch. However, Americana has not yet shared exactly how its innovation works.

Another similar organization called Smart Seal Inc manufactures e-tags that allow physical objects to be digitally identified and traced. These tags emit radio waves within a short-range, thus enabling detection via smartphones in the vicinity. The company calls this Near-Field Communication (NFC) technology. These tags are also aimed at establishing the authenticity of limited-edition items and collectables.

“We have this encrypted tag solution that works very well,” said Mark Shekleton, CEO and co-founder of Smart Seal to Hartford Business in 2021. “Our system provides proof of ownership, proof of authenticity, proof of tamper status, geolocation services , “he added.

According to Smart Seal, there are three benefits to providing digital identities to valuable products: single-touch access to complete product data, consumer protection through proven validity, and enhanced consumer experience. Smart Seal achieves this in 5 steps:

NFC Embedding: The NFC tags are designed such that they cannot be gotten rid of once attached. They are also designed according to the specifications of the brand and embedded at the time of manufacturing itself.

NFT meets NFC: Once the NFC tag has been embedded, an NFT is minted and linked with it. The creator’s details, including place of origin, are fed into it.

Metadata: Blockchain technology securely maintains all the data about the asset. This includes all legal information, authentication details, digital twins if any, and maybe even a bit about the creator.

Verification: When the NFT is sold over a marketplace, the ownership details are updated and coded into the NFT itself. The NFT-NFC link ensures that the new owner’s details are always available to those who scan the NFC tag.

Royalties: When the product is first released into the market, the creator may choose to link a royalty system with the NFT such that (s) he is rewarded every time the product is sold to a different person.

NFTs have come a long way since their inception. If the pace at which they are evolving is any indication, tokenization of everything we physically manufacture could soon become the new method of establishing authenticity and provenance.

(Edited by: Priyanka Deshpande)

First Published: IST

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