At the very basic level NFTs programatically enact contract law in a perfectly transparent way that cannot be faked
The use cases for this aren’t normally apparent to the average consumer because of habit more than anything. I will give some use cases
A limited access club can mint NFTs for membership, allowing the holders to personally trade their access in a transparent way and provides an encrypted method functionally equivalent to a One Time Pad (One of the most, if not the MOST secure encryption method in existence) so building access can be transferred instantly between rights holders, as well as providing a secure inherent messaging between members
This can also be generalized for apartment access. Need a place to stay? You can purchase the tenant NFT from the current renter, and have access to the property securely within seconds
I use these examples because they are human friendly but the BEST use of NFTs is programatic resource management for automated purchasing systems (which are going to be a FUCKING HUGE THING now that LLMs have got access to the big money), for example:
Lets say a LLM is tasked with constantly sourcing the cheapest source of tin for industrial processes, and that all the tin producers set lots of raw material as NFTs. (In this case it isn’t an ideal use as the lots are not unique, but the underlying programatic contract execution doesn’t care and treats them as unique) so the LLM calculates shipping and price and automatically buys lots of NFTs to match the need, which ship out from a port halfway around the world that afternoon
Now 2 days into the 12 day shipping time, the LLM notices that there is a sudden need for tin closer to the current ship location than the initial destination and contacts the LLM of the company that posted the tin need, and offers the lots of NFTs on the ship, the other LLM agrees and the contract is made, the ownership of those lots are altered, the shipping manifest of the cargo vessel is updated and the shipping route may or may not be altered based on the judgment of the LLM handling the cargo ship. All of this happens in a matter of seconds. Once the transaction is complete, the original LLM now goes and searches for another source of tin
The biggest benefit of NFTs is reducing the friction of complex logistic changes allowing companies to find advantages that pass too quickly for humans to notice or make best use of in a way that can be legally as binding as any other signed contract in a court of law.
There are other benefits and use cases, some silly and some abstract but NFTs are so much more than a link to an png on a file server somewhere but that’s ALL people like you will ever know them for because scammers ruined the name while real devs were still working on useful products.
A limited access club can mint NFTs for membership, allowing the holders to personally trade their access in a transparent way and provides an encrypted method functionally equivalent to a One Time Pad (One of the most, if not the MOST secure encryption method in existence) so building access can be transferred instantly between rights holders, as well as providing a secure inherent messaging between members
You can do this with a database.
This can also be generalized for apartment access. Need a place to stay? You can purchase the tenant NFT from the current renter, and have access to the property securely within seconds
You can do this with a PIN code.
Lets say a LLM is tasked with constantly sourcing the cheapest source of tin for industrial processes, and that all the tin producers set lots of raw material as NFTs. (In this case it isn’t an ideal use as the lots are not unique, but the underlying programatic contract execution doesn’t care and treats them as unique) so the LLM calculates shipping and price and automatically buys lots of NFTs to match the need, which ship out from a port halfway around the world that afternoon
Now 2 days into the 12 day shipping time, the LLM notices that there is a sudden need for tin closer to the current ship location than the initial destination and contacts the LLM of the company that posted the tin need, and offers the lots of NFTs on the ship, the other LLM agrees and the contract is made, the ownership of those lots are altered, the shipping manifest of the cargo vessel is updated and the shipping route may or may not be altered based on the judgment of the LLM handling the cargo ship. All of this happens in a matter of seconds. Once the transaction is complete, the original LLM now goes and searches for another source of tin
You can do this with databases.
The biggest benefit of NFTs is reducing the friction of complex logistic changes allowing companies to find advantages that pass too quickly for humans to notice or make best use of in a way that can be legally as binding as any other signed contract in a court of law.
In any situation where you might be tempted to call an NFT “legally binding”, it’s not the NFT that’s binding, it’s a contract, and the NFT is just a proxy for the contract. The NFT adds no value.
At the very basic level NFTs programatically enact contract law in a perfectly transparent way that cannot be faked
The use cases for this aren’t normally apparent to the average consumer because of habit more than anything. I will give some use cases
A limited access club can mint NFTs for membership, allowing the holders to personally trade their access in a transparent way and provides an encrypted method functionally equivalent to a One Time Pad (One of the most, if not the MOST secure encryption method in existence) so building access can be transferred instantly between rights holders, as well as providing a secure inherent messaging between members
This can also be generalized for apartment access. Need a place to stay? You can purchase the tenant NFT from the current renter, and have access to the property securely within seconds
I use these examples because they are human friendly but the BEST use of NFTs is programatic resource management for automated purchasing systems (which are going to be a FUCKING HUGE THING now that LLMs have got access to the big money), for example:
Lets say a LLM is tasked with constantly sourcing the cheapest source of tin for industrial processes, and that all the tin producers set lots of raw material as NFTs. (In this case it isn’t an ideal use as the lots are not unique, but the underlying programatic contract execution doesn’t care and treats them as unique) so the LLM calculates shipping and price and automatically buys lots of NFTs to match the need, which ship out from a port halfway around the world that afternoon
Now 2 days into the 12 day shipping time, the LLM notices that there is a sudden need for tin closer to the current ship location than the initial destination and contacts the LLM of the company that posted the tin need, and offers the lots of NFTs on the ship, the other LLM agrees and the contract is made, the ownership of those lots are altered, the shipping manifest of the cargo vessel is updated and the shipping route may or may not be altered based on the judgment of the LLM handling the cargo ship. All of this happens in a matter of seconds. Once the transaction is complete, the original LLM now goes and searches for another source of tin
The biggest benefit of NFTs is reducing the friction of complex logistic changes allowing companies to find advantages that pass too quickly for humans to notice or make best use of in a way that can be legally as binding as any other signed contract in a court of law.
There are other benefits and use cases, some silly and some abstract but NFTs are so much more than a link to an png on a file server somewhere but that’s ALL people like you will ever know them for because scammers ruined the name while real devs were still working on useful products.
You can do this with a database.
You can do this with a PIN code.
You can do this with databases.
In any situation where you might be tempted to call an NFT “legally binding”, it’s not the NFT that’s binding, it’s a contract, and the NFT is just a proxy for the contract. The NFT adds no value.