Connecting Physical Assets To The Blockchain Using NFCs and NFTs
With the use of encrypted NFCs, the benefits of blockchain technology can be extended to the physical world.
What is a Non-Fungible Token (NFT)?
A non-fungible token is a unit of data stored on a blockchain that certifies an asset to be unique and therefore not interchangeable.
Why Pair Physical Products With NFT?
When a physical asset is coupled to an NFT through an encrypted NFC tag, the NFT acts as the proof of authenticity, proof of ownership, history of ownership, and method to transfer ownership and royalties. This allows anyone to verify the provenance of the asset with just the tap of a smartphone. Assets can also be bought and sold without the need for a middleman.
How We Connect Your Product To The Blockchain
Embed a SmartSeal NFC tag to your asset
SmartSeal produces a wide variety of NFC types and form factors that can be used to secure a variety of assets. The tag should be embedded into the asset in a way that makes the tag difficult or impossible to remove.
Minting the NFT and coupling the NFC
After the NFC tag is embedded, the minitng process couples the NFC-embedded asset to a non-fungible token using the address of the creator. This proves where the asset originated from and is the basis for authentication.
Digital content can be paired with your asset and secured through the blockchain. This may include asset information, provenance details, digital twins, legal information, and creator stories.
Verification and Transfer of Ownership
Ownership of the asset is verified through the NFT-NFC link and is transferred by selling the NFT on a marketplace.
Originators may choose to enable royalties associated with the product. For example, a creator of physical artwork can collect royalties every time one of their pieces is resold.