NFTs for physical assets - the future of NFTs??

[Pelana vreo]

Hey everyone, it’s been a while since I’ve been on here. I’ve been lurking on Twitter and honestly I can’t get with the whole NFT thing. What about guys? This feels like the ICO phase back in 2017-2018.

The closest I’ve gotten to getting into NFTs is through companies like 4K where you can essentially physically-back NFTs with physical goods like expensive watches or shoes. Thought this was a novel concept and really seems like it’s going to be the next phase of NFTs. Anyone heard of them? Are there other companies working on similar things?

How I heard about them: https://www.coindesk.com/business/2021/07/20/rolexes-in-defi-nft-marketplace-4k-raises-3m-to-combine-nfts-and-luxury-goods/

That's a good concept because every watch has an ID token in each serial number.
There are many ideas about NFT physical goods, we may see cars, motorcycles, and many other things that NFT supports.
I was also looking for some NFT jackets and clothes, and yes I found them too.
https://www.deptagency.com/en-dk/insight/dept-creates-ar-puffer-jacket-as-limited-edition-virtual-apparel-drop-2/

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[wattcrypto]

I thought the NFT craze was already over, to be honest, and the article being from July pretty much confirms this point. I agree with the op that it's one of those temporarily overhyped phases of the crypto market. But ICO was the strongest and the longest one, whereas those that followed it weren't as big and as long-lasting. They're not all bad, of course, but as a big movement which many want to join at some moment just because of the hype, it's harmful for many investors. And regarding physically backed NFTs, it's like a small branch inside a bigger movement, just like there were physically backed altcoin projects.

I don’t think the NFT craze is over just yet IMO. I like what 4K is going just for the fact that they’re taking valuable products and issue if nfts for them. They also mentioned that they’re launching a marketplace so I’m curious how that’ll stack up against places like eBay and stockx where the fees are high, fraud is rampant, and the crazy delays with escrowed items.

I like that they have an authentication process which helps with all of the issues other marketplaces struggle with. Minting nfts only makes sense because selling a high ticket item will be much easier because you usually have to involve at least like 2-3 middlemen.

[wattcrypto]

What's the point of physically backed NFTs? I don't get it.

What's the point of NFT's in the first place?

I am with you on the physically backed NFT's though. Why not just FedEx the fucking thing? You don't even need to get out of your house. Call the company, give the item to them and they'll transfer it to its new owner. You can use a 3rd party service like Ebay to list your item.

Welcome to 1998.

No need to thank me.

Based off of what I’ve read about them, this is how it works:

1. Send them the item
2. They authenticate, insure, and store the item
3. Issue you an NFT that you can use to buy, sell, or leverage it in defi

Even if you sell it, you have to pay shipping, worry about authentication delays, astronomical fees, and the hassle of insuring a high ticket item.

What you’re saying applies to normal items but definitely not high value collectibles. Every step of the way there’s friction and I haven’t even touched on auction houses.

This is the post they sent me when I asked the same thing: https://medium.com/@richard4k/4k-com-launch-announcement-3ed8b52ffab

[odukoyaewatomi27]

The concept of NFTs in the blockchain used to represent real life items and assets is an amazing one. I think there should however be a way of verifying the authenticity of the said item of the Blockchain. This will help avoid cases of counterfeit or copyrights.
With NFT valuable itens like baseball cards, etc can be listed on the Blockchain and retain its true value

[ccryptopark]

The concept of NFTs in the blockchain used to represent real life items and assets is an amazing one. I think there should however be a way of verifying the authenticity of the said item of the Blockchain. This will help avoid cases of counterfeit or copyrights.
With NFT valuable itens like baseball cards, etc can be listed on the Blockchain and retain its true value

What’s interesting about what 4K is doing is that they’re authenticating all items that come in. Based off your f my conversation with the team they’re going to show people how they authenticate items so it’s not some process people normally “trust” like with jewelers.

[jhanson]

Why would you need an nft for luxury goods? What’s stopping these luxury goods companies doing it themselves?

[craigpo]

The closest thing it reminds me of are silver/gold certificates? Which I personally prefer the solid asset in hand.

Would this be like a certificate for a share of the physical asset or am I way off?


I appreciate digital assets as NFTs.

From what I’ve read in this thread it’s a certificate for the item. I don’t think they’ll be fractionalizing assets just yet.

[Ccexicocartel]

What's the point of physically backed NFTs? I don't get it.

The whole point of NFTs in my opinion is to try to decentralize ownership. But if you back something with a physical asset, all of a sudden you are once again concentrating the value of the asset onto the physical object that is under custody of someone.

I'm sure it'll be done but I don't think that it'll be big. Just like how gold backed cryptos don't make sense.

Gold backed coins failed for many reasons because often times they didn’t even have the gold.

How we get from web2 to web3 will require some layer of verification and I think what 4K is doing is fascinating

[jjbanks994]

FYI their marketplace just went live: https://www.coindesk.com/business/2021/09/29/4k-nft-marketplace-goes-live-bringing-physical-goods-to-the-blockchain/

Website: 4K.com