Dr. Quinn Button and Dr. Jonathon Button explain the uses and future of NFTs in their lecture titled NFTs: More Than Digital Art. NFTs are essentially allowing for assets to be owned digitally, whereas this was previously an impossibility due to the intrinsic non-scarcity of digital entities. They also explain the ability of NFTs to track physical objects through the use of RFID chips. Due to their nature, there are a number of potential applications for NFTs to undermine central authority and help uphold property rights.
The use of RFID tracking chips in concordance with NFT blockchains can undoubtedly lead to greater individual autonomy and control over personal assets, both physical and digital. Perhaps the most appealing aspect of this technology to the liberty-minded individual is the ability to prove the ownership of an item without the need for a deed granted by the state. This also works to eliminate the necessity of a central authority to arbitrate disputes over the ownership of some physical or digital asset. For example: in order to prove that you are indeed the owner of your car, you hold a title to the vehicle which has been provided through the Department of Motor Vehicles. Instead, with RFID technology, the ownership data for your vehicle could be stored on the blockchain. This would serve a number of purposes. First, it would enable you to much more quickly, cheaply, and easily assert yourself as the owner of your vehicle as opposed to going through a government department inevitably riddled with inefficiencies. It would also eliminate the need to carefully store the physical title to your car in a safe place - with the possibility of it being lost, stolen, or destroyed. You could, instead, simply store such a title digitally on the blockchain. This would also allow the title to be more easily transferred between the owner and a potential buyer. The only issue with this would be the actual enforcement of property rights in compliance with such a method, which I have no doubt could also be done privately and without government intervention.
The benefits of incorporating RFID technology with NFTs also extend beyond mere decentralization. Such a process would likely also result in a much more streamlined process for verifying the legitimacy of various goods. It could ensure the shoes you are buying are authentic, the clothes you are buying are actually ethically sourced, and the jewelry you are buying is actual made of the material it says it is, etc.
The use of NFTs as a tool by those wishing to complete voluntary transactions without the government regulating or taxing them bears merit in the digital realm. So long as NFTs remain decentralized and outside the sphere of influence of the state, transactions taking place digitally should also act as a means of pushing towards decentralization as a whole. Artists can, ideally, use this technology to distribute their art, music, or other digital assets freely without the burden of intermediary action by the state in the form of traditional financial institutions and potentially taxation. Increasing the use of such technologies is a step in the right direction to ensuring unique digital assets can be legitimately owned in the same manner as any physical asset, but with the added layer of convenience and security in the permanence of the blockchain.
Perhaps one of the most perplexing applications of NFT technology is its use within the Metaverse. In the lecture, Dr's Jonathon and Quinn Button discuss Decentraland, which is a virtual world in which users can purchase digital plots of "land." They can then restrict the access to such spaces to users who own a specific NFT. This is an interesting concept for virtual events such as concerts, but it could also have applications in circumventing the eye of the government to a degree similar to that of legitimately anonymous chat rooms, but with an added layer of "presence." For example, a virtually-owned plot of "land" could be restricted on a decentralized platform to specific users who could then access the plot to communicate with other users who have access. The space could visually or audibly contain content only accessible to those with the correct NFT at a level more advanced than a mere chat room. This is not to suggest that it would certainly be a more effective means of conducting such an activity, rather to simply highlight the possibility of such actions occurring.
While I do believe NFTs have great potential to move society in the direction of overall decentralization, there is one major concern I have with their use.
Due to their decentralized nature, NFTs are undoubtedly something the government wants to get a handle on in for purposes such as tax revenue, regulation, etc. If the government were to adopt a system in which every citizen's identity is linked to their digital activities, they could monitor individual actions online to a terrifying degree. Further, if the government adopts NFT technology to form a sort of digital currency, their regulatory ability increases exponentially as opposed to physical financial assets. This could lead to a plethora of issues. For example, the government could simply wipe your funds clean with the click of a button, block you from making purchases, or even blacklist you entirely as a consumer. This raises concerns in terms of privacy as well as in terms of economic freedom.
