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  • NFT as a ownership verification of physical goods

    Kacper Srodecki
    1 reply
    What do you think about using NFTs as certificates of ownership and originality for physical goods? It's already been successfully used in, for example, the fashion industry.

    Replies

    Tim Dierckxsens
    I can provide some insights here. Yes it's an interesting concept of using NFTs as certificates for ownership. There are a few considerations to make. * If the NFT is a real certificate - are you adding warranties to it or how are you going to enforce / police that it is indeed a certificate? * Is the NFT tied to the physical good. Considering its ownership verification then I assume it's tied to the physical good. Let's say I purchase the NFT and then request delivery of the physical good. Will that change the properties of the NFT? If not how are you going to keep the NFT ownership and physical good ownership in sync? I've seen a few variations here and mostly it's done in 1 or 2 ways. 1) The NFT is a promise of delivery of the physical good. As long as the physical good hasn't left the warehouse it is redeemable by the owner of the NFT. When they claim, the NFT changes property and then acts more like a collectible than a certificate 2) The NFT is the certificate to the physical good but the physical good is kept in a custodial / third party storage. The owner of the NFT holds the rights to the physical assets which enables trading of physical assets through NFTs. Hope this helps.