NFT in logistics
In the last 2 years, NFT has become a common acronym in the daily lives of those who work with the internet. However, with social distancing and the increasingly intense digitization of routine tasks, its popularization is reaching its apex.
Although it is a recent and experimental technology, we have already discovered a series of practical applications for the tool. On and offline, NFT has become synonymous with versatility, being able to integrate digital and physical tools, without giving up security:
In games, NFTs can be collected and traded in strategic and intuitive games; in the art market, NFTs have become collectors’ items and true works of art of unparalleled value; in logistics, they formalized the desire to optimize product storage and allowed administrators to implement new ways of innovating in the supply chain.
It is about this last application that we are discussing today.
What is NFT?
NFT is an acronym for non-fungible token , which can be translated into Portuguese as “non-fungible token”. However, to understand what an NFT is, it is essential to pay attention to what each part of the term means:
- Token is a token or token that generates passwords;
- Fungible is a word that determines something replaceable, in the case of NFTS, they are non-replaceable. They are unique as they derive from a blockchain, which ensures that all data included in your identity form a unique chain.
In general, it is a digital document that encodes information securely through a password, and resembles a contract registered on the blockchain. Therefore, NFT is a digital asset, which serves as the identity of an item or person on the internet.
Blockchain, in turn, is a chain of digitally shareable information, made up of cryptographic hash blocks, encrypted information only decoded with an access key. This encryption is what guarantees high data protection and that only the holder of this key can access them.
Another point that guarantees the high reliability of NFTs is that the information kept is immutable and all data is authentic. That is, everything registered will remain exactly the same as when it was saved, not changing with time and use.
This was precisely what made the NFT popular and fueled its market growth. According to NonFungible’s annual NFT report , in 2020 alone the use of the tool tripled. With that, the monetary value involved in transactions was around 2.9 million dollars.
However, security is not the only reason for this. NFTs are the best way to indicate ownership and responsibility for an asset.
An example of this use is the case of the numerous Bored Ape Yacht Club collectibles , images of “bored” monkeys with different designs, all exclusive. Although we see the image being spread around the internet, the original belongs to someone specific and can only be accessed by that person.
The tool also has high tracking capability. As it is analyzed using keys, everyone who has access can check where it is located, if there is physical content.
This is especially useful in a supply chain, where warehousing and tracking products is critical to staying organized.
NFT in logistics
The transport and storage of goods intrinsically depends on the tools implemented in the logistics sector. With the high number of products, large distances and countless divisions and allocations, innovative technologies, such as NFT, allow the process to be more efficient and errors to be minimized.
In logistics, the NFT reserves all information about a given load. Descriptions, ways of use and product developer are essential data for delivery and ensure that everyone involved is fully aware of the content of the item they are working with.
It also relies on so-called metadata, data about other data. In this case, they tell you when information was added, and this is stored in the token itself. Consequently, it is possible to follow all the changes that the load undergoes and the path it has taken.
As all this information is immutable and traceable, the NFT allows transparency of deliveries, high data security and organization of the trade chain. Place, date, person in charge and deadline will always be the same, not changing with the use or access of the NFT.
For all these reasons, the tool conquered the logistics chain. The reliability of information and easy access, which can be checked whenever necessary, ensured that the first companies brought NFT in logistics to reality.
Although the tool is in the process of being explored, we see some launches that have gradually become the first option in large logistics centers:
TradeLens, for example, a platform developed by the MAERSK conglomerate in partnership with the company specialized in technology, IBM (International Business Machines Corporation), has been implemented in 5 of the 6 main lines for container transport in the world.
In Brazil , TradeLens strengthens the national delivery chain. It optimizes access to information and streamlines data delivery for all involved using Hyperledger Fabric, a blockchain aimed at enterprise systems, created by the Linux Foundation.
Another tool that also enables the use of NFTs in logistics is the IBM Foot Trust, which also uses the Hyperledger Fabric to enable the improvement of transparency in the distribution of loads in global companies.
These are just two examples of dozens of projects being developed worldwide. Little by little, NFT ceases to be a possibility and becomes the best alternative for companies that want to optimize their deliveries and transform how they organize items in their supply chain.
We, at Águia Sistemas S/A, keep an eye on the news and sound out the launches as a prosperous future for logistics. Meanwhile, we have prepared a complete collection of products aimed at intralogistics. Keep in touch with us.
(The text above was written using information from academy.binance.com, techenet.com, nonfungible.com and warren.com.br)