Interesting Ways Tokenized Assets & NFTs Are Being Used in 2022 by@bensoncrypto

Interesting Ways Tokenized Assets & NFTs Are Being Used in 2022

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

Blockchain technology is changing the world and I'm here to document it

Tokenization provides a gateway for users to own digitized versions of real world assets usually with a lower barrier to entry, and we are seeing increased applications for this technology over the past few years.

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

Tokenized Precious Metals

Tokenization of precious metals is a unique use case of tokenization of traditional assets that enable users to own a stake in gold bars. VNX is the first European regulated platform for investment into tokenized precious metals, that also offers management of precious metal transactions with digital tokens.

The company’s first tokenized precious metal, VNX Gold, is based on Ethereum and represents an ownership stake in physical gold bullion certified by the London Bullion Market Association (LBMA). The unique serial number stamped on each gold bar links it with the respective VNX Gold tokens, which are available on the VNX platform under the ticker VNXAU.

Gold has persevered as an inflation hedge, historically bringing stability to investors during market volatility. It continues to do so now, as it trades at its highest price since last June. This stable commodity is seen as a safe bet amid market crashes or general uncertainty, bringing apprehensive investors a more diversified portfolio along with peace of mind.

VNX allows users to purchase tokenized gold in the form of VNX Gold tokens using Euros, Ether, or Bitcoin from anywhere around the world in just a few clicks. Each VNX Gold token represents ownership of one gram of physical gold and offers investors all the advantages of its underlying commodity merged with the flexibility of a crypto asset.

Users can transfer their VNX Gold tokens to any Ethereum wallet while the physical gold is stored in a vault in Liechtenstein with full insurance and zero storage fees. Holders can also collect their physical gold or receive a minimum of one kilogram of gold via global delivery. VNX Gold is also launching a loyalty program which uses NFT technology.

NFT Backed Loans

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

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

Cryptocurrencies, on the other hand, allow for fractional purchases, thus investors are not required to purchase a single Bitcoin in full. In contrast, every NFT has a unique digital identity that makes sure it cannot be duplicated or split. On the blockchain, an original NFT may be readily validated.

The non-fungibility of NFTs makes it easy to prove the exclusivity of assets. When it comes to digital goods, it has given rise to a unique class of assets that has similarities to conventional fine 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 anywhere from days to weeks and even months. This is in contrast to a cryptocurrency that can be sold in mere seconds. This is where NFT-backed loans come in.

Users can borrow money by using their NFTs as collateral, allowing them to leverage the borrowed funds to earn additional returns. Investors can earn 20% to 80% on their collateralized 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 over the course of the borrowing period and released once the loan has been repaid.

Medical Records

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

It can be argued that NFT-based solutions are a safe alternative to handling patient data due to the immutability of blockchain technology. Whilst NFTs have mainly garnered attention for JPEG projects and Play-to-Earn gaming, the technology can be applied to traditional use-cases as well. In the medical field, NFTs can be used to store patients' past medical procudures, verify their identities as well as track how medical samples are used.

Additional use cases for NFTs in the medical field include the tokenization of sensitive documents. For example, doctors may offer newborn babies NFT Birth Certificates alongside the traditional paper-based versions. Issuing an NFT to each child may be an easy way to create a blockchain identity for the newborn child, which in turn can be used in additional protocols to track procedures, health conditions, medication history, and so on. 

In Closing…

Tokenized assets and NFTs have wider applications outside of JPEG-based art projects and crypto gaming. 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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