What is NFT and what does it mean in blockchain?

29 Nov, 2021
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What is NFT and what does it mean in blockchain?

In a world that’s ever-changing so too is technology such as that with nft blockchain. One aspect you may have heard of or know a little about is blockchain. When it comes to brands wanting to provide the best experience possible for consumers, it’s all about product authentication, NFC labels, and blockchain-based technology.

A blockchain is a type of database where the information is structured in blocks and saved in different computers (nodes) at the same time (decentralized). With this, you may be wondering how secure is blockchain really? That’s where another important element, NFT, comes into play and is why it’s wise to discover more about what it means in blockchain. It’s important to note that they are not one and the same and there are differences between the two. Continue reading to have all your questions answered and to learn more about a product authentication and brand traceability solution you may want to consider at your company.

What is an NFT?

You may first be wondering what is an NFT and what does it stand for. It stands for non-fungible token. What this means is that it can’t be replaced with anything else and that it’s unique. They are also verified and stored using blockchain technology. You can think of it as having an element that’s one-of-a-kind. Non-fungible tokens (NFTs) are often considered modern-day collectibles.

The technology also goes a step further and makes it difficult to alter or counterfeit NFTs. You can think of the NFT as a digital ‘token’ that is stored on a blockchain that can be transferred to someone giving them ownership of the token. They are all digitally unique and no two NFTs are the same. These NFTs are giving more power to content creators than ever before in history.

On the other hand, Cryptocurrency is defined by an article by Asia One as a “virtual currency that uses cryptography to secure and verify transactions as well as to manage and control the creation of new currency units.” It’s fungible, which means the cryptocurrency Bitcoin, for example, can be traded for another Bitcoin. Which is better depends on the trader’s interest and willingness to risk.

So, can you make money on NFT?

On various sites, you can stake your NFTs to earn rewards and incentives. You can also indirectly make money with these non-fungible tokens by investing in startups. It’s important to note that they’re not a quick-passing crypto trend. Some examples of NFTs include but are not limited to unique digital artwork, a unique sneaker in a limited-run fashion line, or an in-game item. NFT is a drastic contrast to most digital creations, which are usually infinite in supply.

How Is an NFT Different from a Cryptocurrency?

You should know that an NFT is different from a cryptocurrency. The main difference between them is that unlike cryptocurrency and digital currency, NFTs can’t be traded for each other. This is due to the fact that they are unique representations of digital or real-world assets. There will be no loss to their value when trading cryptocurrencies and digital currencies as they can be traded for each other.

Although cryptocurrency and NFTs rely on the same type of blockchain technology, they’re created and used for different purposes. NFTs are essentially crypto assets that contain a unique certificate of authenticity which makes them rare and high-value digital assets.

How does an NFT work?

An NFT can be sold at any point and bought at any point in the NFT marketplaces. Most NFTs are part of the Ethereum blockchain. In that its blockchain also supports these NFTs. There is extra information being stored that makes them work differently. Right now the craze is all about digital art. However, NFTs can be any digital object really such as digital drawing, image, music or one of any digital files.

They’re designed to provide you with something that can’t be copied. Only one person can own the original piece of artwork, for example. NFTs can also contain smart contracts that might give an artist a cut of any future sale of the unique token, for instance. Blockchain technology and NFTs are a unique opportunity for artists and content creators to monetize their efforts and works.

How does an NFT work in Ethereum blockchain

Physical NFT

Physical money and crypto currencies are “fungible,” meaning they can be traded or exchanged for one another. NFT can also be physical. You may also be curious about a physical NFT and what it is exactly.

A physical NFT artwork (Non-Fungible Token) is a token that represents a real-world physical artwork, for example. You can also sell physical work of art and its NFT version separately.

What is a physical NFT?

A Physical NFT is a physical work of art sold as and linked to an NFT. The token can then be resold or redeemed for the physical object. NFTs are like physical collector’s items, except they are digital. NFTs can have only one owner at a time. As it relates to artwork, a physical artwork is a token that represents a real-world physical work of art.

One frequent misconception people make is to presume that an NFT can exist and be traded alongside the physical asset. However, unless the physical asset is held in custody, it’ll be very challenging to track both the physical artwork and digital NFT. The only technology that can securely and reliably link an NFT and its physical twin is Authena shield, capable of creating a bridge of trust between the real world and the metaverse.

Fraudulent copies of works being sold are a major problem with physical works even in galleries. Once the ownership of the artist’s private key is established, then the blockchain provenance of the NFT of the piece of art will be very difficult to undermine.

NFT Collection at the largest NFT marketplace

If you are interested in the topic of physical NFTs, we invite you to visit the marketplace with the NFT collection we collaborated on with the artistic perfume brand Masque Milano: “Accords”.

'Accords' the NFTs collection by Masque Milano in the largest NFT marketplaces

What is a digital twin?

Digital twins as it relates to blockchain, are key elements that when connected allow continuous data acquisition. The result of the paper offers a concept to ensure the unique tokens represent the physical assets without being tampered with by applying digital twin technology. A digital twin is the replica of a process, product, or business that you can use to securely track and authenticate shipments and single products.

The role of digital twin in technology against fraud

The integrity of the blockchain is relevant when it comes to the development of this technology. They will soon play a noteworthy role in verifying the authenticity of commodities. It’ll not only help streamline operations but also reduce the chances of theft.

There is more and more evidence that correct use of the blockchain, NFC tags, and digital twins can resolve many of the traditional issues brands face with counterfeited goods.

NFT & Metaverse

There is no single definition or creator when it comes to the metaverse. One can loosely define it as a digital reality, similar to the World Wide Web. However, it also combines aspects of social media, augmented reality, and cryptocurrencies so users can act and interact virtually.

What is the metaverse?

Metaverse is a term initially coined in science fiction, which is a combination of the prefix “meta”, meaning beyond, and “universe”.

Experts will say that NFTs, or these non-fungible tokens, are the key to the metaverse. By buying and selling NFTs, people are slowly becoming owners of the Internet instead of renters now with these digital tokens. Metaverse is still in the earliest stages.

When considering what is the metaverse – think of your physical world and what surrounds you each day being digital. It’s going to be all around you instead of you surrounded by walls and rectangles. The NFT tokens give users ownership in the digital world. It’s allowing the metaverse to actually become real.

The metaverse can be broken down into two distinct types of platforms. The first entails building a blockchain-based metaverse, using NFTs and cryptocurrencies. Platforms exist that allow people to purchase virtual parcels of land and build their own environments. Right now the future of the metaverse is quite uncertain. However, many are getting behind the idea and working hard to develop it further and make sure it comes to fruition.

How does NFT work in the metaverse?

NFTs allow people to own and participate in the cultural moments that matter most to them as individuals.. It’s still fairly new and there isn’t much more information about what it’s going to look like or how it’ll exactly work but just that it’s possible. Essentially, NFTs are the revenue model for the metaverse. Non-fungible tokens (NFTs) are a novel form of virtual asset that has ignited much of the growth in the metaverse.

NFT as proof of authenticity in the physical world & its digital twin on the Metaverse

So what does all this mean and how can you apply it today? NFT as proof of authenticity in the physical world and its digital twin on the Metaverse means the world and technology are rapidly changing. NFTs work and are a way to prove the existence and authenticity of all digital content online.

To visualize Authena’s technology, we encourage you to watch the video:

The truth is that the physical world is slowly becoming outdated. More is happening online than ever before, including the purchasing of goods. It’s all about becoming limitless while still being able to protect brands and consumers and ensure there’s no theft or counterfeiting happening. This is where Authena’s NFT technology comes into play.

How can you bring technology into your business?

You now have a better idea and more insight as to what NFT is and what it means in blockchain. Keep in mind that while a lot of this is in the early stages, it’s also not going away anytime soon and is likely to become a bigger part of your life. It’s important that as a business owner or consumer you’re prepared to understand the concepts in greater detail and are ready for when these types of transactions will be happening online and in the metaverse.

Using Authena’s NFT technology, you too can ensure that your business is protected from theft and counterfeiting and that your customers have a smooth and seamless experience making purchases over the Internet and on various platforms. The technology now exists for brands and producers to fight back, so why not get set up correctly now? Exciting developments in NFC tags and blockchain stand poised to revolutionize supply chain security forever.

Get your business ready with NFT & Blockchain

Now is the time to act and get prepared, before it’s too late. You not only want to be able to authenticate products but also detect where the fraud occurred and find out who is likely responsible for it. Anti-counterfeiting solutions are not one-size-fits-all. These are different plans depending on the level of security and reliability a firm needs. This is all the more reason to work with the experts who specialize in this type of work and technology and who can help ensure you succeed.

Protecting brands with Authena’s technology

Bringing NFT and blockchain technology

Authena technology is an anti-counterfeiting solution that is revolutionizing the security of branded products by also protecting the reputation of brands and the health of consumers. The integration that Authena uses provides a guarantee of secure communication and verification, without it there are many risks associated with NFT and blockchain technology. Based on a physical-digital encrypted tag that seals directly each tangible product, Authena seals detect opening and tampering attempts and can be read via NFC with any smartphone. An instant tap is able to create a trusted bridge between the metaverse and the tangible world, unveiling integrity, authenticity and unique identity of each physical-digital NFT.. This is an end-to-end solution that prevents counterfeiting, grants traceability, and revolutionizes brand experience.

Secure product verification using blockchain

It’s not only a flexible solution but also scalable. It includes the functionality of blockchain verification, which means it can store and verify product info, proof of authenticity, and change of NFT ownership, ensuring data transparency and allowing digital audits. Another element that you should know about is NFC product tags.

Digital & physical security seals

Near Field Communication (NFC) physical and digital seals permanently linked to products, featuring fraudulent refilling and dilution protection. NFC tags are critical because they prevent tampering, allow operatives to collect encrypted data about products when tapped, they also and ultimately protect your brand.

Blockchain is important because it allows all supply chain stakeholders to create an immutable record of products data and movement. When operatives read NFC tags that are directly applied to single products, their devices send information to the blockchain network. What this does is create a permanent record of where the product is, the condition it is in, and where it came from.

Today many companies and manufacturers are plagued by traceability and counterfeiting problems. We combine and integrate different technologies and IoT devices to create the best possible version of the Authena technology framework to fulfill our customer’s needs. We encourage you to contact us for a free demo and so we can answer any questions you have.

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