Non-fungible tokens (NFTs) refer to the digital assets that represent objects found in the real world such as artwork, animations, images, virtual land, collectibles, tweets, in-game items, videos, music and anything else you can imagine. These assets are bought and sold online using crypto and are encoded with software similar to the one that encodes cryptos. The ability to buy and sell digital work online has increased the popularity of non-fungible tokens,
Citing its popularity and the rapidly developing technology, do you think that time is ripe to verify your online identity with a non-fungible token in the same way you require a valid driving license to drive a vehicle? You could also be wondering whether non-fungible tokens are the ultimate solution to the problem of online identity verification.
Well, tokenized identity, in the form of Non-Fungible Tokens (NFTs), seems a palpable path to take. Imagine using non-fungible tokens to power online identity cards and get total control over who has access to your data.
Through smart contracts, you will have total control of who your share your digital assets with and even who gets paid when the asset is transferred from one business to another.
How It Will Operate
Before any business embarks on developing NFTs as the next ID document, it will first consider all the types of data that comprise the digital identity and the governance structure that can manage safe, trusted, and compliant access. In this sense, it is necessary to take a structured approach that catalogs different data facets that an institution or business may need about a person. Moreover, there is the need to create a governance layer that can manage the access and distribution of data such that only those who need it have the authorization to access it.
But even then, it is unnecessary to take more data that is required. The objective of tokenized identity is to use the minimum data to achieve the desired outcome.
Imagine a scenario where your ID is an NFT featuring all your identity and digitally tracked identifiers.
The Future of NFTs and Your Identity Verification
Already, non-fungible tokens are used as a means for selling or buying intangible digital assets (as mentioned above). Similarly, there is hope that non-fungible tokes will prevail even more in the near future. Sooner, the future is unlocking more opportunities where non-fungible tokens will be used to prove ownership of tangible materials such as homes, cars, gold, land, and more.
While ensuring ownership of the asset or token you share, there will be an assurance of your identity security. Improved security will indubitably allow seamless transactions worldwide. For example, with non-fungible tokens, it will be possible to instantly transfer property from an American-based business to an Indian company.
What do you think about this fantastic feature that is all out to enhance your identity security while bringing all your investments in one basket? Will your next ID document be an NFT?
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