ConsenSys will soon be selling blockchain security audits as redeemable NFTs. This idea could be a game-changer for businesses and freelancers.
NFTs can be a lot of things, and now there exists an example of NFTs representing online services from a professional company. Now that it is no longer lucrative to create yet another generative art NFT profile picture collection (which people only buy because they think someone else will pay more for it later on), projects who want to make money on NFTs have to be innovative and realistic . NFTs are a powerful way for a blockchain startup to raise money without creating a useless cryptocurrency, but creating an NFT collection worth millions is very difficult.
Non-fungible tokens, or “NFTs“, exist in the public’s eye primarily as overpriced JPEG profile pictures, creating hype and controversy all through 2021. However, this is a very tiny niche of what NFTs are capable of. NFTs are a special type of cryptocurrency where each token is unique from every other token, which makes each one’s market value different. The token itself is little more than a deed of ownership secured by a blockchain, most of which live on Ethereum or Polygon, but the content embedded in the token’s data can be literally anything, As long as it can be linked to with a URL.Thanks to blockchain, NFTs auction can be transferred to new owners, allowing them to be sold ored (or stolen) on NFT marketplaces like OpenSea.
ConsenSys, one of the leading security auditing firms of the blockchain industry, will soon be offering its security auditing services in the form ofTime-Unit Representative NFTs“, or TURN tokens. These work just like a service coupon, where the coupon can be redeemed for the service it represents. In this case, each NFT represents 40 hours of security auditing work by ConsenSys, which will sell at a flat rate to buyers. From there, the buyers can list the tokens on NFT marketplaces, where the open market can determine the actual value of the company’s services.going to the moonor buying any Lamborghinis for those who purchase them, instead they serve a purely functional purpose: learning what the free market values a ConsenSys security audit at.
This Opens New Opportunities, And Problems
While Starbucks created an NFT rewards program in May this year, ConsenSys is likely to be the first major company to sell redeemable service NFTs. What NFTs bring to the table that gift cards and coupons can’t is the creation of an open market where services can be traded like commodities. Selling time-based services as NFTs can allow a business to quickly raise money by selling several months’ worth of services in advance, and then provide the services as the tokens are redeemed. This could be invaluable for online freelancers, as it can be difficult to ascertain the market value of one’s services or make enough money to live.
However, this probably won’t be helpful for small brick-and-mortar businesses providing in-person services to a local community. The biggest downside to this model could open the door for market manipulation of the price of online services, such as a wealthy investor purchasing a significant portion of the circulating supply or a company wash-trading its own services to drive prices up. Another significant downside is that NFTs can be stolen with malicious links if the owner isn’t careful. It is also hard to tell how regulatory agencies like the SEC or CFTC will view these tokens, as they could potentially be seen as securities.
Overall, this is a great example of how NFTs can serve practical use cases that don’t involve speculating on JPEGs. Now that the NFT hype is gone and prices have crashed, real innovation and advantages can emerge. More use cases for NFTs will be explored offering as time goes on, more businesses and professionals may decide to begin their own TURN tokens or similar, and eventually a decentralized Fiverr may pop up to cater to that emerging market.
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