Charles Hoskinson, co-founder & CEO, Input Output Global, Inc., is awed with the success of NFTs (or Non-Fungible Tokens).
Delving deeper into the potential NFT use cases, Hoskinson states NFTs can have utility for collectibles or connected devices, beyond standardization. Advocating tokenization at some level, he shared the future roadmap of NFTs in his recent Twitter Space:
Join me in my Space! https://t.co/HBw9GgKuwK— Charles Hoskinson (@IOHK_Charles) December 26, 2022
He envisions NFTs as a means of experiences and achievements likening to diplomas. Optimistic about the developing future of the NFT sector, Hoskinson states,
NFTs are useful for anything that you have a collection of or is connected to something beyond a standardization. So, for example, a deed of land. Mineral rights. Water rights. Any notion of property rights. In the GameFi [gaming and decentralized finance] space, any notion of your character progressing throughout the game. Your activities within that game. The special powers that you accumulate, all the rewards that you accumulate – all these things can and should be tokenized at some level. They also can represent experiences. They can represent achievements, like diplomas. Credentials. Obviously, if you went to medical school and graduated, that’s specific to you. It’s not fungible – it’s specific. NFTs, as a format, I think in each of those areas, is useful. So it’s actually a larger space than the fungible world. And you can securitize them. You can take anything that’s an NFT and turn it into something that’s associated with a revenue stream.
Hoskinson explains how anyone can pick-up NFTs and attach to them a revenue stream. Commenting how Cardano could bring value to this ecosystem via governance and interoperability, Hoskinson says,
What I want to do is just get involved with the high-level, you know, metaverse, GameFi, and something related to collectibles and then watch how those things evolve. And then I’ll worry about things like governance, interoperability, and these types of things and sort of let the commercial people figure out different ways to make money. A lot of what is at the end of the rainbow is going to be complex intellectual property negotiations. License deals. Like, we’ve had some discussions about how you represent a patent portfolio as an NFT. How you can sell the rights to the portfolio and then how that can turn into interest-earning future profits on that. We can securitize patents as a non-diluted way of guaranteeing capital for a business. If you’re a pharmaceutical company, for example, you have to sell stock. You can pre-sale part of your patent portfolio on the anticipation of it generating money. There’s a lot of little stuff like that that can be done.
Interestingly, Hoskinson also deciphered how specific and fungible NFTs are actually different. He states, for example, medical school graduation is a specific achievement, that’s not fungible. NFTs are having a scope even beyond their ‘fungible’ feature, Hoskinson believes.
As per Hoskinson’s vision, NFTs can connect brands and influencers to their audiences. TikTok, says Hoskinson, can debut as a platform for brand tokenization. He is absolutely amazed at how the NFT industry has grown exponentially at scale from scratch.
Tokenization of brands is also becoming increasingly more transparent, especially in a world where influencers and TikTok people, I think, are going to be the first wave to tokenize their brands… But, to be honest with you, I am surprised by the growth and scale of the NFT space. It’s gone from nothing to very substantial in a very short period of time.
The complexities surrounding the intellectual property (IP) negotiations in the domain of NFTs has caught Hoskinson’s attention. Brainstorming how a patent portfolio can be represented as NFT has been undertaken already, Hoskinson states.
Also discussed already is how to sell the portfolio rights, and convert them to future profit via earning interest. It would be interesting to witness all of these unfold, ultimately driving ADA to the $1 price mark.
In another Cardano news, Hoskinson reportedly believes it’s a ‘good thing’ Cardano isn’t listed on the Gemini exchange.