How Real Items NFTs Contribute Toward a Circular Economy
Non-Fungible Tokens (NFTs) have proven time and time again to be valuable to people worldwide. From artworks to decentralized finance (DeFi), NFTs present various use cases. Blockchain, the technology behind NFTs, provides proof-of-ownership and accessibility in a global market. NFTs can be used to claim resale royalties directly and even be leveraged as collateral for a decentralized loan.
With all that said, NFTs are taking the heat from environmental activists saying that NFTs largely contribute to harmful greenhouse gases. This is because many NFTs still use the Proof of Work (PoW) algorithm, which requires a ridiculous amount of energy consumption. To remedy this, developers have created the Proof of Stake (PoS) algorithm, which consumes a relatively lower amount of energy.
Other companies have even gone as far as to utilize NFTs to support sustainability and a circular economy. One such use case is Real Items NFTs. Real Items pairs NFTs with physical products to transform our throwaway economy into one where waste is eliminated, and resources are circulated.
Real Items does this by turning products into "Phygitals." Phygitals are smart products integrated with an NFT. Unlike normal physical products, Phygitals are trustworthy. They provide unique content that you won’t find on a product’s packaging. This can include behind the scenes images on where a product was sourced, custom videos, and even gamification strategies. Phygitals pave the way for traceable data, which supports businesses that want to create a circular economy.
Here are four ways Real Items NFTs contribute towards a circular economy:
1.) It allows end-consumers to see a product’s backstory and experience its production process
Any produced or recycled item has a story to tell regarding when, where, and how the production process occurred. With Real Items NFTs, business owners get to explain an item’s production and recycling process to their customers. This allows for the inclusion of recycling materials which explains the disposal of the product to others.
When business owners are environmentally conscious, they keep in mind the products and packaging they will use. By shedding more light on the design process, consumers can see how their purchases can be kept in circulation so they don’t end up in landfills. This particular act of designing things to be environmentally friendly helps change consumer mindset to harness new materials and technology, so waste and pollution are not created in the first place.
2.) It lets users serve every recycled item as a product of worth, which creates a lesser chance to dispose of the products
Most physically presented items in the linear economy do not show the production process and the story behind the product. However, by pairing an items with a corresponding NFT, consumers can access the necessary information, qualities, and production process.
Aside from basic product information, Phygitals are also tradeable, so consumers will be incentivized to take care of the products they purchase. They come with unique content, and depending on the product, end-consumers will be able to add their own “memories” or information to it. This then allows them to think twice before deposing a product and would instead recycle it into other sustainable items to keep the value it carries.
3.) It allows business owners and content creators to get information concerning the availability of a product
Every Real Items NFT has a unique identity that, when accessed, provides necessary information such as the history of the product and its availability. When scanned, Phygitals show the physical product’s verifiable data, which may be located elsewhere or even faraway. This feature has allowed business owners to see how many products are left and determine the best discarding process to avoid harming the ecosystem. This design also meets one of the principles of a circular economy, which is to eliminate waste.
4.) It allows consumers to provide feedback and collaborate with business owners easily
Getting information is one thing, but another aspect that Real Items technology has is the ability for consumers to directly communicate with business owners to provide feedback and even suggestions for collaboration. This follows the Web3 model of the decentralized world wherein everyone can contribute to the innovation of a specific product.
By giving consumers access to direct communication with business owners, they can then improve on the design. With faster feedback, there’s more opportunity to make efficient changes to keep materials in use and regenerate natural systems for a circular economy.
Although NFTs face controversies regarding their ecological impact, they can also be a catalyst for innovation. For the past three years, Real Items has always envisioned NFTs to solve counterfeits and build a world where truth is verifiable.
We do this because we believe that when people have access to the truth, they are able to make smarter and wiser decisions. To create a circular economy, companies need access to accurate and tamper-resistant data. We support businesses and environmental activists in their pursuit of sustainability by giving them the proper tools to leverage innovative technology.
This planet is what we have in common. Let’s take care of it not just for ourselves but also for the generations to come. If you’re a business owner who wants to leverage Real Items’ environmentally friendly technology, book a FREE DISCOVERY CALL with us, and we’ll set up a solution designed just for you.
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