Here’s What You Don’t Know About NFT That Could Enable The True Value of Data

It's likely that you've heard that data is the new oil. However, the oil must be transported to where it is required, refined, and consumed. Because there is a significant benefit in treating data as an asset, data analytics activities have expanded. As technology becomes more widely adopted, large volumes of data are being produced and consumed. Despite this, the potential for generating value from the data generated is still untapped. Organizations must get greater value from their data in order to compete in the long run. But incentivizing data exchange, as well as legislative and technological hurdles, remains a barrier in the ecosystem.

Continuous value creation is possible when data is exchanged across organizational boundaries in order to draw insights. For instance, by looking at a borrower's transaction history, banks can reduce the risk of lending. Isn't data similar to oil? However, oil must be transported to where it is most required. Insurance firms, for example, value vehicle telematics data. They'd be willing to compensate the carmaker for it.

Sharing has been hampered for ages due to obstacles. It was difficult to disseminate information about cars available for pick-up to those who needed it the most before the internet. Car-hailing services are now using technology to solve this problem. Cross-border payments used to have a lot of roadblocks, but thanks to technological advancements, that is changing.

Sharing is a technology problem

How do companies build a data-sharing infrastructure in a B2B environment? Cloud-based data-sharing technologies are available. These solutions, however, are unsuitable due to regulatory and incentive constraints. Organizations must be aware of what data they cannot share, for what purpose, and with whom, in light of the evolving data-privacy rules around the world. Before exchanging data with a third party, they may require the approval of the data supplier. They may also be required to demonstrate that the end-user gave their consent. A tool should provide a solution to these issues in order to unlock the actual value of data.

NFT Enables True Value of Data

Initially created as a ledger to securely store cryptocurrency transactions, the blockchain has iterated into a tool to store any kind of information that may be shared in a verifiable, secure, and trusted way.

With NFTs, a recent blockchain iteration, the blockchain is able to contain data with extra valuable information. Before NFTs, the blockchain simply recorded information like “Okon transferred 4 bitcoins to Idara”. How useful is that information? Data analysts can report that 100,000 bitcoins where traded in 1st quarter of a year. The reports often spoke of volume of units. NFTs on the other hand contains metadata¸a description about the item. NFT transactions are essentially metadata on the move. The metadata is extra useful and sharable. NFT transactions, for example, can be like “Okon Enterprise produced/mint birth certificate”, “Okon Enterprise transferred birth certificate to Idara”, “Bassey Manufacturing Ltd transferred receipt to Meyene Supplies Ltd”, “Okon transferred ”. Artworks a re the current flavor of the market, however, NFTS are beyond JPEGs. It's time for organisations to see their data as an asset.

NFTs presents the opportunity for organisations to package data-as-a-shared asset.

NFTs presents an opportunity for organisations to enable data as an asset in a compliant way. How do you go about this process? This is where TechAssembly can help. Send us a mail sam@techassembly.io Do you want to learn data science?' Join iCamp data science cohort.

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