Buzz
At CES 2022 this year, Vinfast not only showcased their latest cars but also announced their incorporation of NFTs into car sales. Many might wonder about the connection between buying a car and NFTs or blockchain. Hopefully, today's article will shed light on what their NFT actually is and its significance.
According to TechBullion, prospective Vinfast car buyers will receive a VinFirst NFT upon placing a deposit for a Vinfast car (I believe 'First' here refers to the first person to buy the car). To put it simply, this VinFirst NFT serves as a form of certificate, but instead of being a piece of paper or a plastic card, it is a metadata string on the blockchain.Let me provide a simple example for you all. In the traditional sense, when you have a membership card, it's usually a plastic card similar in size to a bank card. Depending on the company's services, this membership card comes with various perks, such as those from airlines. In theory and on paper, the membership card belongs to you, but if you ever want to sell it to someone else (maybe you need some cash), two main issues arise:- Buyer: How can they verify if the card is authentic? What about ownership rights?
- Seller: How can they sell it to someone who wants to buy?
With a membership card, in the case of VinFirst NFTs, you can do the same as above. Just access Harmony's blockchain (which Vinfast utilizes), input the NFT you want to find (usually the buyer provides you with the NFT's ID), and you'll be able to verify:- Who's behind this NFT? Is it Vinfast? Typically, companies or famous individuals have a wallet address in the form of a domain (this domain is also an NFT itself 😆).
- How many hands has it passed through (here, 'hands' refer to wallet addresses, not actual names).
According to CNET, Samsung's upcoming TV generation will enable users to purchase NFTs. It's nothing too extraordinary or demanding from users. Simply put, it's just like how you used to buy movies or music. BUT, when purchased as NFTs, you truly own them. For example, buying a movie on Samsung's store used to tie it to your account, making resale impossible. Now, as an NFT, you can put it up for sale on the market, and anyone interested can buy it. That's it. Buyers can still verify metadata as I mentioned earlier. It's not too difficult for Samsung to do this; they just need to create a marketplace for content creators to upload, and buyers can confirm transactions on their phones.For content creators, this opens up more opportunities. For example, they can produce content in limited editions, providing reassurance to collectors due to easier ownership verification. Content creators can earn additional commission by embedding code into the NFT minting process. For instance, every time there's a transaction, they automatically receive a 5-10% commission into their wallets (e.g., receiving $50 from a $1000 transaction if they set it to 5%). The more trading of their NFT content, the more commission they earn. Allowing NFT content trading encourages content creators to produce higher-quality content, as they stand to earn more.
In my prediction, NFTs will see wider application in various digital content sectors, ownership rights, especially in gaming. It's simple why gaming companies are integrating NFTs and blockchain: (1) Players will feel more confident buying and trading items as they are no longer dependent on the game developers. (2) Developers act as intermediaries, charging fees for transactions on their platforms or taking a percentage from item sales since they are the creators. The more transactions occur, the more revenue they generate. For example, the president of major gaming company Square Enix believes NFTs and blockchain will be a major trend in 2022. Those interested can read more about Square Enix's NFT usage here to understand his insights on NFT applications, which are similar to what I've shared.
As I mentioned in my first blockchain article, blockchain isn't some mystical force; humanity has been functioning fine without it. It simply streamlines current processes, such as digital rights management. Check out my NFT application article for more insights.
My NFT article: ,
