Selling Physical Items as NFTs, Explained

1. How is it possible to sell real-world items as NFTs?

Virtually anything can be tokenized these days, and several companies have already started turning physical items into non-fungible tokens.

Perhaps one of the biggest and most compelling use cases to date is for ownership. If you've ever bought a home before, you'll know how long and arduous this process is, with tons of paperwork and outdated systems.

NFTs are touted as a way to modernize the way things are done, with ownership duly recorded on the blockchain. This can speed things up, reduce disputes, and also help fight fraud.

It also opens the door to home purchases being made with cryptocurrencies instead of fiat – and a number of businesses, particularly in Miami, have sprung up in recent months to make this a reality.

2. Could this help modernize the lucrative world of collectibles?

Yes, and potentially increase security in the process.

Sports memorabilia remains incredibly popular, with Pokemon cards also enjoying something of a renaissance in recent years.

NFTs can be used to create digital representations of things that exist in the real world. This can help fight counterfeiting and create crystal clear ownership records.

Some crypto companies have been set up that even offer custodial services for top-notch collectibles, ensuring they are kept in a safe place and in pristine condition. Although it may seem counter-intuitive at first, it can be particularly interesting if you consider memories as an investment opportunity.

It can also streamline the bidding process in secondary markets.

3. Are there any big brands getting involved in physical NFTs?

Yes, despite the bear market, which saw trading volumes drop. Other big companies will inevitably join us in the future.

Nike topped the rankings when it comes to consumer brands generating revenue from NFTs. Recent research shows that the sportswear giant made a colossal $185 million in revenue after diving headfirst into the world of digital sneakers, thanks in part to a shrewd acquisition of Web3 studio RTFKT.

But Nike's efforts don't end with making sure metaverse avatars render well in cutting-edge virtual threads. He also dabbled in NFT collections that accompany digital designs with an actual version of the sneakers they buy. It could become a new wave for the fashion industry, and the innovation doesn't stop there.

Another favorite keepsake for music fans is ticket stubs after attending a concert: a lasting memento they can stick on their wall that says "I was there." Ticketmaster is now trying to establish NFT tickets that can serve as a commemoration of memorable concerts, immortalized forever on the blockchain. Other forms of technology, known as Proof of Attendance Protocols (or POAPs) could take this concept even further.

4. What safeguards are in place to avoid scams?

Ensuring that an asset's authenticity, provenance, condition and ownership rights can be verified is essential, giving buyers confidence in what they are buying.

NFT industry standards can help here. When the physical items backing up an NFT enter a vault, it is crucial to be absolutely clear who will have the right to remove it again. External auditors could also be responsible for evaluating the context of a transaction and the information...