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How will it transform other industries?

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At the beginning of 2021, when I first heard the acronym NFT (non-fungible token), I asked myself what an NFT is. After all, I quickly realized I wasn’t the only one asking that question. The truth is, it’s not mainstream. And even if you’ve heard of NFTs, you often have trouble defining what they are. So, to help frame this conversation, it’s worth defining what an NFT is.

An NFT is a record on the blockchain that is associated with or represents ownership of a digital or physical asset. Breaking it down, an irreplaceable part means that it is unique and cannot be replaced by something else. So in theory it’s 1:1, and NFT proves it. The token part comes in because records of production, transactions and ownership are recorded on the blockchain. The industry term is called “tokenization”.

When thinking of NFTs, many associate it with both physical and digital art. This is due to several factors. Art provides a perfect use case for NFTs. NFT is an industry that has long needed a way to truly identify the creation, authenticity and ownership of a work of art. Estimates vary, but on an annual basis, fraudulent or illegal art trade is around $6 billion. Another factor is the media and marketing coverage surrounding Art’s NFT. But in this writer’s opinion, the flame’s greatest agitation came from its pure economics. The exponential increase in the price of both rightfully caught people’s attention.

But art is just one use case for NFTs. It is important and even more important to understand that NFT use cases exist beyond art. Although the technology life cycle of NFTs and related blockchain technologies is still in its very early stages, the reality is that NFTs will have a major impact on many industries. Below is a non-exhaustive list of current use cases implemented by companies across multiple industries including supply chain management, real estate, digital and self-sovereign identification, event tickets, fractional ownership, membership cards, collectibles trading, food, etc. list. Production and digital twinning of fashion items.

The actual application of NFTs in different industries is different. However, common key challenges they are trying to solve include traceability, transparency, clear management processes and ownership. The use case for NFTs at Metamall Group is the sisterning of fashion items through the metaverse retail marketplace. This evolves into NFTs created for specific items purchased and traded through our platform. It also provides relevant data insights to partners, allowing them to truly impact how their businesses operate.

Other use cases will emerge as NFT usage increases. Too many unsolvable problems. And with so many problems to solve, it means you have great opportunities to win.

However, for NFTs to reach their full potential and impact, they need a strong ecosystem to support their evolution and growth. At a minimum, the ecosystem includes future-oriented founders and their companies, the investment community, educators, and government agencies.

This is where some cities in the Gulf region, especially Dubai, are at the forefront. Dubai has revealed that he plans to become one of the major hubs, if not the epicenter of the Metaverse, NFTs and blockchain ecosystem. The main driving force for this is not just government support, but also government support through investment, enactment of business-friendly laws and infrastructure, and the creation of organizations such as the Dubai Blockchain Center and the Dubai Future Foundation. The signal is that we see considerable opportunities and are fully committed to building the future through blockchain-related technologies and creating a truly digital economy.

This helped create the perfect storm to accelerate the growth of the region’s blockchain technology ecosystem. (both) are shown to set up regional offices or relocate headquarters, an influx of global talent, and accelerators to help companies launch. Even amid concerns about the impact of adjustments in the global economy and crypto markets, the future is expected to be very bright and built here in the region.

Keo Sar is co-founder and CRO of Metamall Group.

read: Gulf Business Enters Non-Fungible Token Space, Launches GB Crypto NFT

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