Non-fungible tokens, also known as NFTs, are primarily known for their uses in NFT art collections and Play-to-Earn (P2E) games. However, there are other interesting use cases outside of these two industries. Let’s take a look at some interesting use cases for NFTs in 2022.

Loans secured by NFT

Non-fungible tokens can be used as collateral for loans in Defi protocols. Many Defi initiatives have noticed the growing need to increase the liquidity of NFTs through strategies such as lending, as many NFTs in the market are quite illiquid due to their unique nature. For example, if you want to sell cryptocurrency, you are selling multiple amounts of the same token, so finding buyers is much easier. However, when it comes to NFTs, since each one is unique and different from the others, you need to find a buyer whose needs or interests match that specific NFT. I will explain this in more detail below.

Non-fungible tokens (NFTs) can mean ownership of a wide range of physical objects as well as digital assets, such as avatars, trading cards, and virtual properties. The main selling feature of NFTs is their non-fungibility, or more simply, the fact that they cannot be split or duplicated.

Cryptocurrencies, on the other hand, allow split purchases, so investors are not required to buy a single Bitcoin in full. In contrast, each NFT has a unique digital identity which ensures that it cannot be duplicated or split. On the blockchain, an original NFT can be easily validated.

The non-fungibility of NFTs makes it easy to prove the exclusivity of assets. When it comes to digital assets, this has given rise to a unique class of asset that has similarities to conventional art collecting and other rare tangible collectibles, such as PFP projects like BAYC .

However, as I mentioned earlier, it is much more difficult to find buyers for an NFT, which can take days, weeks, or even months. This contrasts with a cryptocurrency that can be sold in seconds. This is where NFT secured loans come in.

Users can borrow money using their NFTs as collateral, allowing them to leverage borrowed funds for additional returns. Investors can earn 20% to 80% on their guaranteed NFTs. This system is made possible by smart contracts and decentralized applications (dapps) that cater to the Defi market. NFTs are held in secure smart contracts during the borrowing period and released once the loan is repaid.

Medical records

Medical records can be permanently stored on the digital ledgers used in blockchain technology. Since non-fungible tokens are data elements stored on the blockchain, this technology can be used for managing sensitive medical records. This is made possible by the fact that all transactions on the blockchain are validated on multiple nodes before being added to the blockchain permanently, which ensures that each record is accurate and safe from any attempt to manipulate data. unethical way.

It can be argued that NFT-based solutions are a safe alternative to processing patient data due to the immutability of blockchain technology. While NFTs have primarily drawn attention to JPEG projects and Play-to-Earn games, the technology can also be applied to traditional use cases. In the medical field, NFTs can be used to store patients’ past medical procedures, verify their identity, and track the use of medical samples.

Other use cases for NFTs in the medical field include the tokenization of sensitive documents. For example, doctors can offer newborns NFT birth certificates alongside traditional paper versions. Issuing an NFT to each child can be a simple way to create a blockchain identity for the newborn, which in turn can be used in additional protocols to track procedures, health conditions, birth history drugs, etc.

In conclusion…

NFTs have wider applications outside of JPEG-based art projects and crypto games. By looking at the underlying technology behind these tokens, we can unlock additional uses for these tokens, from using them as collateral for loans to storing, managing and verifying patient records.

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