Non-fungible tokens (NFTs) have repeatedly been shown to be valuable to individuals all over the world. NFTs present a variety of use cases, from artwork to decentralized finance (DeFi).
NFTs’ underlying technology, blockchain, offers accessibility and proof of ownership in a worldwide marketplace. NFTs can be utilized to directly collect resale royalties and even be used as security for a decentralized loan.
Despite all of this, NFTs are facing criticism from environmentalists who claim that they are a major source of dangerous greenhouse gases.
This is due to the fact that many NFTs still employ the energy-intensive Proof of Work (PoW) method. To address this, programmers developed the Proof of Stake (PoS) algorithm, which uses comparatively less energy.
Some businesses have even taken it a step further and started using NFTs to promote sustainability and a circular economy.
Real Items NFTs are one of these application cases. Focusing on companies that transform our trash economy into one where resources are cycled and waste is reduced by combining NFTs with tangible goods.
Here are a few ways NFTs contribute towards a circular economy:
Showing end-users a product’s backstory
Any manufactured or recycled item has a tale to tell about how, when, and where it was made. With NFTs, businesses can inform customers of the creation and recycling of an item.
This enables the incorporation of recyclable elements, which helps people understand how to dispose of the product.
When business owners are concerned about the environment, they consider the goods and packaging they will use.
Consumers can understand how their products can be retained in use rather than ending up in landfills by providing more information about the design process.
Also read, How Blockchain can enhance Circular economy
Allows users serve recycled products as a product of worth
In the linear economy, the majority of physically presented goods don’t reveal the creation process or the backstory of the product.
Customers can get the essential details, characteristics, and production process by pairing an item with a related NFT.
In addition to providing basic product information, Phygitals can be traded, which will encourage customers to take good care of the things they buy.
Depending on the product, end users may be able to add their own “memories” or information to the original content that they provide.
This, therefore, enables individuals to reconsider throwing away a product and instead recycle it to create other sustainable goods to preserve the value it carries.
Allows content creators and business owners access to product information
Every Real Items NFT has a distinct identity that, when accessed, gives important details including the product’s history and availability.
The verified data for the physical product, which may be somewhere or even far away, is displayed when a Phygital is scanned.
Due to this function, business owners can now monitor how many products are still available and choose the best method of disposal without endangering the environment.
Additionally, this design complies with the circular economy’s guiding concept of zero waste.
Allows for feedback from consumers
Getting information is one thing, but NFTs also give customers a direct line of communication with company owners so they can give feedback and even suggestions for working together.
This adheres to the decentralized Web3 paradigm of the world where anybody can contribute to the invention of a particular product.
Customers can improve the design by having access to the proprietors of the company directly. Faster feedback increases the chance to make effective changes that will preserve resources and restore natural systems for a circular economy.
Don’t miss important articles during the week. Subscribe to blockbuild weekly digest for updates.