Private NFTs for Enterprise in Stringš§µ
Non-fungible tokens (NFTs), as discussed in our last post, have gained popularity over the past few years. With improvements in implementation, NFTs are a major opportunity for enterprise.
As discussed previously, one of the types of an NFT is the private NFT. Private non-fungible tokens (NFTs) are digital assets that are unique and indivisible, similar to other NFTs, but they are only accessible to a specific group of people or individuals. Private NFTs may be used to represent ownership or access to exclusive content or experiences, such as exclusive access to a virtual event or exclusive access to a digital artwork. Private NFTs may also be used to represent ownership or access to physical assets, such as a limited edition physical artwork or a ticket to a physical event.
String's unique architecture supports a wide range of applications, including private NFTs.Ā Stringās Private NFTs differentiate from public NFTs in that they may be public or private based on the userās choice. This gives the ability for our community and/or an organization to list them on a marketplace with the alternative option of keeping the NFT privately held. In String, any immutable object associated with an NFT may be private or public. This can be seen in the diagram below.Ā
Private NFTs are well-suited for use in a variety of enterprise applications, thus creating a huge opportunity for many use cases across industries.
One potential use case for private NFTs is in the insurance industry. Insurance policies can be complex documents with multiple clauses and exclusions. With String, insurance companies can create digital copies of policies and store them on the blockchain. This allows policyholders to easily access and verify their coverage information in real-time, streamlining the claims process and reducing the risk of fraud. It's often the case that organizations acquire policies in bulk agreements. Oftentimes many policies go to waste. In String, these policies which carry private data including purchase agreements and policy holders personal information to be sold.Ā
In addition, Stringās private NFTsĀ help companies optimize their resource allocation by allowing them to easily sell or transfer bulk sets of policies to other companies. For example, if a company acquires 100 policies to insure their resources but then only needs 80 of them, they could use private NFTs to sell the remaining 20 policies to another company that has extra capacity. This could help both companies make better use of their resources and potentially generate additional revenue. Also by building all of this on-chain with String, it allows for more efficient auditing and bookkeeping of the policies through blockchains inherent immutability.Ā
Beyond insurance, Private NFTs can also streamline the management of property titles. Property titles are important legal documents that establish ownership of a piece of real estate. In String, smart contracts can dictate the creation of documents on chain with relevant providers having access to assimilate to traditional purchase agreements such as loan applications, mortgage agreements, and background checks. The private NFTās in the form of property titles can be securely stored and easily transferred between parties, making it easier and more efficient for people to buy and sell property, with a built in layer of privacy and security that String offers.Ā
Beyond the two examples we covered above, Private NFTs have a variety of other enterprise applications, such as supply chain management, intellectual property management, and more. The ability to securely store, broker, and transfer digital assets makes private NFTs a valuable tool for businesses looking to streamline their operations and reduce risk. Finally maintaining all records on a public blockchain is extremely significant in that no private party can modify the immutability of these assets.Ā
In conclusion, Stringās NFTs have the potential to disrupt the way that enterprises manage and transfer important assets. With their added layer of privacy and security, private NFTs can be used in a variety of use cases that create a more efficient and streamlined process across industries.