How is it Possible to Sell Real-World Items as NFTs?

How is it Possible to Sell Real-World Items as NFTs?

Practically anything can be tokenized these days — and several companies have already started transforming physical items into nonfungible tokens.

Perhaps one of the biggest and most compelling use cases to emerge so far concerns property. If you've ever bought a place before, you'll know how arduous and time consuming this process is — with reams upon reams of paperwork and antiquated systems.

NFTs are being touted as a way of modernizing how things are done, with ownership being duly recorded on the blockchain. This can speed things up, reduce disputes, and help clamp down on fraud, too.

This also opens up the door to house purchases being made with cryptocurrencies instead of fiat — and a number of businesses, especially in Miami, have sprung up in recent months to bring this to reality.

Could this help modernize the lucrative world of collectibles?

Sports memorabilia remains incredibly popular — with Pokemon cards also enjoying something of a renaissance in recent years.

NFTs can be used to create digital representations of items that exist in the real world. This can help clamp down on counterfeiting, and create a crystal-clear record of ownership.

Some crypto companies have been established which even offer custody services for blue-chip collectibles — ensuring they're kept in a safe place and in mint condition. While this may sound counterintuitive at first, this can prove especially compelling if you regard memorabilia as an investment opportunity.

Are there any big brands that are getting involved with physical NFTs?

Nike has dominated the rankings when it comes to mainstream brands generating revenue from NFTs. Recent research shows the sportswear giant has netted a whopping $185 million in revenue after delving headfirst into the world of digital sneakers — in part thanks to a canny acquisition of the Web3 studio RTFKT.

But Nike's efforts aren't just about ensuring that avatars in the Metaverse look good in cutting-edge virtual threads. It's also been dabbling in NFT collections that accompany digital designs with a real-world version of the sneakers they buy. This could shape up to be a new wave for the fashion industry — and the innovation doesn't stop here.

Another particularly desirable memento for music fans relates to ticket stubs after they've been to a concert — a lasting memory they can stick on their wall that says "I was there." Ticketmaster is now dabbling in establishing NFT tickets that can serve as a commemoration of memorable gigs, immortalized forever on the blockchain. Other forms of technology, known as Proof of Attendance Protocols (or POAPs) could take this concept even further.

Created on 3rd Oct 2022