NFTs is the best-known niche of blockchain technology, but many probably don’t realize how versatile and powerful they are beyond being expensive JPEG profile picture collections, such as combating counterfeit goods by tracking production and shipping history. NFTs lend themselves remarkably well to this purpose, since every object in the world has a unique history, and uniqueness is the literal definition of “NFT“.
NFTs, or non-fungible tokens, are digital blockchain assets that represent a unique “thing“, where the thing can be literally anything. They have two components: an ownership agreement that is secured on a blockchain, and a URL inside that action that points to the token’s metadata, which can be an image, video, folder, download link etc. Most NFTs are transferable, meaning that people can buy or sell them on NFT marketplaces such as OpenSea, Magic Eden or CNFT, giving them a speculative (and volatile) open market value. While many transferable NFTs are just profile pictures or Play-and-Earn game resources, they can also represent professional online services, where each token can be redeemed as a voucher for the service NFTs can also be modified for utility purposes, such as NFT lawsuits sent to crypto fraudsters .wallets, in which case it makes more sense that they are non-transferable so that anyone can identify a wallet with stolen digital property.NFTs are the most versatile, adaptable and misunderstood technology to come out of the internet age eren, an d their use cases are only just getting started.
Origin Threads is an artisan company that uses NFTs to represent all handmade garments. NFT metadata is used to store a detailed history of each garment’s manufacturing locations, materials and sources, and overhead costs, and that metadata is stored in a QR code on a tag inside each item. With the right infrastructure, it would be possible to track every place the product was shipped around the world, and each item would have its own transaction and ownership history. While this is still a new application area and will require its own trial-and-error evolution until industry standards are created, it is a very powerful way that NFTs can be used. For a company that makes handmade products with high price tags (for example, an Origin Threads shirt costs $200), proving an item’s authenticity can make a huge difference to the company’s bottom line.
Secured by the Cardano Blockchain
Origin Threads uses the Cardano blockchain for its NFTs. Cardano is a low-cost, eco-friendly blockchain designed to be scalable, fast and cheap to use. Rather than being designed, developed and distributed like most blockchains, Cardano is being researched and gradually developed by researchers and academics around the world. Because Origin Threads’ NFTs run on Cardano, they do not harm the environment, a concern often raised for Ethereum NFTs.
A system of standards is needed for NFTs for production and supply chain tracking, which will provide each physical item with metadata that tells its exact history and verifies its authenticity. This will make it impossible to hide unethical production and material sourcing, and force companies to strive for higher standards. Counterfeit goods will be easy to detect by both humans and computers, as the QR code will either point to a fake NFT or it will point to a legitimate NFT whose actual product was shipped elsewhere or already purchased. With the right blockchains, these NFTs will be carbon neutral, and will continue to represent countless consumer goods and their manufacturing history.
With the bubble burst and prices down, innovation and benefits of NFTs can now continue. NFTs have great potential to combat counterfeiting, and Origin Threads sees this. NFTs can make counterfeiting impossible, forcing counterfeiters to sell cheap knock-offs instead of full-price brand-name counterfeits. As companies like Origin Threads are learning to use NFTs most effectively, more companies will jump in and start doing the same for their products as well, thereby giving consumers and retailers enough information to stop counterfeiting in its tracks, and protecting the hard work of traditional artisans like Origin Threads.
Source: Origin Threads
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