Data is a valuable resource for solving and scaling solutions to difficult global issues. NFTs contain information, and few people discuss treating this information as an asset. It is insufficient to just mint NFTs (non-fungible tokens). We believe that your business should learn how to increase revenue by unlocking the opportunities provided by the data NFT contains. NFT data is a business-to-business (B2B) gold mine that (almost) everyone misses. The increasing usability of NFTs is already laying the groundwork for digital ownership and identification. Treating information as an asset has immense potential, but it also comes with its own set of drawbacks. In this post, we’ll be highlighting the major drawbacks and opportunities.
First, let’s recall some great features of NFTs:
- Proof of ownership: NFTs are revolutionalizing ownership by giving a complete history and proof of ownership on a globally accessible database (the blockchain).
- Direct-to-consumer (DTC) , business-to-consumer (B2C) business-to-business(B2B): NFTs are minimizing the need for middlemen.
- Customizable: The NFTS can be customized to suit your needs. Because of this programmability, artists can now provide digital originals without the use of middlemen while still receiving royalties on secondary sales of their work.
Consider NFTs to be a container for any data, with rules governing and licensing access to any third-party user.
NFT Secret 1: There Is A Data Sharing Problem
It’s worth noting that certain products capture [user] data without their knowledge or permission. According to IDC data, 65% of enterprises in the Middle East and Africa are moving forward with digital transformation projects. Effective data governance will be of growing interest for business resilience. According to an IDC survey of CIOs performed in January 2022, 76% of CIOs in the Middle East and Africa area have minimal to moderate data visibility. This means they have no idea who has touched the data or how many changes it has gone through before it reaches their desks.
Have you observed that some businesses have data but are unwilling or unable to share it with others in their ecosystem?
- What’s in it for me? Would I be compensated? Companies that are prepared to share data with others often incur significant expenses while developing digital apps.
- For some businesses, the technicality of data exchange is a barrier.
- In addition to technological barriers, data sharing also has regulatory hurdles. Data privacy concerns as well.
NFT Secret 2: NFTs Provides Data Sharing Solution
NFTs offer a solution to these problems. When data is shared outside of your organization, you can create long-term value and generate revenue. For example, the inventory data of restaurant suppliers could be extremely valuable to the restaurant. Yet, why should a supplier allow a manufacturer to acquire their inventory data? For this problem, let’s see developments that encourage companies to share data.
- Compensation for sharing data: Third parties can purchase data tokens in order to acquire access to an NFT’s underlying dataset. The data requester can propose to compensate the data owner for sharing the information. One example is employers who are willing to pay hospitals for the medical records of their employees. Another example is advertisers or data engineers purchasing tokens so that they can have access to the NFTs’ data. See Ocean Protocol.
What to share
On the regulatory side, businesses think about what data they can disclose, with whom, and why. Before exchanging data with a partner, organizations may demand the explicit approval of the data provider.
Sam is a Solution Architect and Software Engineer with a deep interest in finance, data, community, mental health, and education. Connecting the dot is his superpower. Sam is exploring his curiosity and creativity to match that with what the world needs.