In this episode of Understanding Crypto with James Burtt and Paul Abercrombie, they discuss NFT use cases to prevent counterfeiting and protect commercial supply chains. Both James and Paul agree that corporate NFTs are the business model of the future. James contends that the current system, with all of its inefficiencies, continues to benefit the corporate world. However, Paul maintains that blockchain technology can help with a number of time-consuming processes.

NFTs to the rescue!!

Counterfeiting is a major product-based infringement which can be remedied by blockchain technology. There are many NFT use cases that can ensure that business supply chains are not compromised. Paul reminds listeners, "NFTs are not just about speculative profit, it's about solving a real-world problem using the functions of a smart contract." Presently, some companies are pioneering this real-world functionality by using NFTs to track and verify the authenticity of the parts before assembly. Paul adds, "You will find a world where your normal financial environment will contain not just your bank account but your crypto assets and your digital assets in one place." [Listen from 3:05]

These NFTs, referred to as corporate NFTs in the business world, are intended to replace the continuous paper trail that historically accompanied corporate financial transactions. James says that he agrees with this move because "It's probably five or six different handover points and everyone is using a different system. When you think about it, they’re actually relying on trust." However, there are frequent violations of trust in the high-stress fields of motor, aviation, and marine sports that make supply chain management very challenging. As a result, the use of counterfeit parts is widespread. They both argue that this can be changed. However, the majority of people generally view NFTs as investments, even though they have several real-world applications that could help the industry. [Listen from 8:45]

If business owners are able to use NFTs in innovative ways, James believes that they can shift the language surrounding the technology. On the other hand, Paul presents an opposing view that explores the resistance to the technology because the current system continues to be profitable for the corporate world. Using the construction industry as an example, he explains that many time-consuming practices can be solved with blockchain technology, but the old system pervades. Both Paul and James agree that corporate NFTs  are the future. "With non-sexy use cases of NFTs, you're not going to make a million quid by buying one of them, but it actually solves problems." [Listen from 16:48] 

Key Takeaways

• Corporate NFTs are the business model of the future.

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram