Blockchains are decentralized, providing open participation in network operations. Unlike the stateless internet, blockchain records use cryptography for protection, and can transfer state and value via non-fungible tokens (NFTs), and execute self-executing code called “smart contracts.” These combined virtues make the potential impact of blockchains in the 21st century’s business world incalculable, from optimizing the supply chain to automating the insurance industry. This blog post articulates NFT Architecture in securing supply chains and devices.

The advent of low latency will enable genuine machine collaboration…

The primary obstacle to achieving true machine collaboration, which was once expressed as “machine-to-machine” communication, has been the latency in our communications networks. This obstacle must be resolved to achieve the projected $1.5 trillion annual revenue of the global machine-to-machine economy by 2030.

Fortunately, we are on the brink of a new era in networking characterized by real-time or time-sensitive networking (TSN). This drive toward zero latency has been present since the 1970s in safety-critical domains like robotic manufacturing, robotic surgery, and space exploration. The public has heard about this trend as “5G,” but that is merely a marketing term.

The future of TSN will filter down to every social and business sector, enabling devices to respond almost instantly, and allowing machines to send and receive vast amounts of data to each other without error. Once this occurs, the IoT will come to life, and the earth will have a true “digital nervous system”.

Smart Contracts: Enabling Social Impact of the IoT

However, the true intelligence of the Internet of Things (IoT) will be driven by smart contracts, not just speed. While the ultra-fast networks of the future will require coding for social and business purposes, blockchains, and specifically smart contracts and non-fungible tokens (NFTs), have the potential to revolutionize the IoT in ways that are not yet fully understood.

Blockchains, which first emerged in 2008, have seen a level of innovation and popular involvement that has exceeded that of the internet itself. Second-generation blockchains, like Ethereum, have native languages that allow for the creation of self-executing smart contracts. These decentralized networks are considered “trustless” because transactions recorded in their ledgers are considered immutable and are difficult to reverse, allowing for peer-to-peer transactions of blockchain-native assets and digital assets controlled by smart contracts.

Smart contracts that run on the latest blockchains bring together the physical and digital worlds by using third-party services called “blockchain oracles” to provide validated information from the external world. This allows on-chain contracts to respond to off-chain events. For example, a smart contract can automatically lower insurance payments if a car reports safe driving.

One of the key applications of blockchain platforms is the creation of NFTs, which allow people to trade and store items of value on social networks. While NFTs have gained fame in the art and collectibles world, they are part of the larger trend towards distributed or decentralized computing that includes blockchain, cryptocurrency, and edge computing. NFT architecture, combined with other technologies, have the potential to make decentralized finance (DeFi) a reality for anyone, anywhere on earth.

The Business and Social Revolution of NFTs and Digital Twins

NFTs have been mostly associated with high-end purchases of rare items like artwork and trading cards, leading to the misconception that they have no practical use in regular business. However, NFTs can represent anything with a unique identity and secure it digitally, allowing for automation of daily business operations through blockchains. For instance, software licenses can easily be handled by NFTs, which can provide provable control over digital assets and their ownership. Smart contracts also allow sellers to set conditions on a token-holder’s rights, such as royalty payments to the NFT creator.

One example of the practical use of NFTs is in optimizing the supply chain. Fungible components of automobiles can be tagged with digitally non-fungible signatures, such as QR codes or barcodes, allowing for tracing of the component’s provenance. This enables manufacturers to recall only the cars with the flawed part, potentially saving billions of dollars each year. Additionally, inventory recorded as a blockchain entry can eliminate user-entry errors and supply chain disruptions caused by a single point of failure in traditional databases.

NFTs and Digital Twins: Revolutionizing Business Operations and Supply Chains

Smart contracts enabled by blockchains offer real-time visibility and early intervention into operations that may have gone astray, increasing resiliency and lowering costs. In contrast, conventional databases have a higher attack surface than blockchains, which continuously encrypt recorded data with increasing difficulty. By utilizing NFTs, manufacturers can optimize their supply chains, particularly those with high-end products or a reputation to maintain, such as luxury fashion brand Louis Vuitton and Italian beer brand Birra Peroni.

The possibilities for NFTs are virtually endless. For example, NFTs could use real-world “trackers” to prove a user’s presence in a specific location at a specific time, triggering digital events such as minting a new NFT using real-world data. IoTex’s Pebble Tracker device captures and cryptographically signs real-world data such as location, climate, motion, and light, which can be tied to insurance-related smart contracts.

In addition, Aleo’s use of zero-knowledge proofs (ZKPs) allows for information verification without sharing personal data, a significant milestone in personal privacy. These advancements in blockchain, smart contracts, and NFTs represent a significant business and social revolution.

Smart contracts enabled by blockchains offer real-time visibility and early intervention into operations that may have gone astray, increasing resiliency and lowering costs. In contrast, conventional databases have a higher attack surface than blockchains, which continuously encrypt recorded data with increasing difficulty. By utilizing NFTs, manufacturers can optimize their supply chains, particularly those with high-end products or a reputation to maintain, such as luxury fashion brand Louis Vuitton and Italian beer brand Birra Peroni.

The Revolution of Blockchain, Smart Contracts, and NFTs

The possibilities for NFTs are virtually endless. For example, NFTs could use real-world “trackers” to prove a user’s presence in a specific location at a specific time, triggering digital events such as minting a new NFT using real-world data. IoTex’s Pebble Tracker device captures and cryptographically signs real-world data such as location, climate, motion, and light, which can be tied to insurance-related smart contracts.

In addition, Aleo’s use of zero-knowledge proofs (ZKPs) allows for information verification without sharing personal data, a significant milestone in personal privacy. These advancements in blockchain, smart contracts, and NFTs represent a significant business and social revolution.

Related reading: Monetizing IoT Data with Blockchain

Subscribe To Ger Free Newsletter: “Crypto Alpha Straight To Your Inbox“

SPONSERED

Blockchain Advisory Services

🫴 Crypto Exponentials has recently introduced Blockchain Advisory Services to assist your business in leveraging blockchain technology for enabling frictionless markets and driving future transformation. This technology is revolutionizing the way the world operates and we can help you apply it to your advantage.

Using “The Golden Circle” approach, we can unlock the value of blockchain for your business. Our engagement framework and experience spectrum are given below, and we come well-prepared with a full arsenal to make your blockchain transformation seamless. We can provide either a full-blown or progressive engagement model, depending on your needs.

We assess whether building your own blockchain solution or adapting marketplace solutions is more appropriate, help you create your edge through the right ecosystem play, and find winning ways to go to market. Learn more.

⏩ Schedule a FREE Strategy Session to Unlock Blockchain Value 📲