How Companies are Using NFTs, Blockchain and Other Technologies to Manage Real World Assets
When a company sells a piece of intellectual property, such as a patent or trademark, it often uses that property to generate revenue. However, in order to do this, the company must also acknowledge and protect the rights of those who might use the property in the future. This is known as the IP’s “fair use” doctrine. If a company owns a real estate asset and intends to sell that asset, it must assume that there will be other interested parties who will want to purchase that asset from it. For example, if a company owns a building, it must assume that there will be other companies looking to buy that very same property.
In an effort to manage and own intellectual property more efficiently and secure its rights more effectively, companies are integrating new technologies known as “NFTs” and “blockchain.” These technologies are enabling companies to sell and own intellectual property in new ways. Let’s explore these new asset management technologies and how they are being used by companies.
Where to Streamline the Asset Management Process?
A company’s ability to manage assets effectively is hindered by the often-lengthy and complicated process associated with each sale and purchase of an asset. The best-run companies use automated processes and software to streamline the process and make it more efficient. One efficient technology is computer software. This can be used to track and manage a wide range of assets, such as land and buildings, patents, trademarks, copyrights, contracts and more. This kind of software often includes functionality to track asset condition, history, usage and more.
Another efficient method companies are using to streamline the process is to use electronic communication. This method lets everyone involved — sellers, buyers, lawyers and even management — communicate and share information more efficiently. This includes communication between the company and its vendors, real estate agents and other contractors, and other companies that provide services to the company. This communication and information sharing can be achieved through email, online forms, and other convenient technologies.
How Companies are Purchasing and Using NFTs
When companies decide to raise funds through the sale of assets, they almost always require a list of assets to be purchased. In many cases, this is the beginning of the process of discovery, during which the company identifies its assets and requires a list of validating factors to determine their worth. Once identified, the company uses various due diligence techniques to confirm the authenticity and integrity of the assets and to ensure they meet the terms and conditions of the listing. This process is often known as “purchasing” an asset.
To purchase a real estate asset, for example, the company will usually conduct a “showings” process that includes visiting the property and conducting a thorough inspection. The company will also usually require a restrictive covenant (a legally binding agreement) that the property meet certain minimum criteria, such as being in good condition and not being used as a “warehouse or storehouse for other property.” Once the company has purchased an asset, it is usually required to sign a deed of sale, known as a “sellers’ contract.” This contract often details the terms and conditions of the sale, including the address to which the sale should take place, the payment terms and conditions, and other restrictions.
How Companies are Selling and Managing Intellectual Property Using NFTs
IP assets management is not just a problem for larger companies. For smaller companies, as well as for individuals and non-profits, the process of protecting and managing intellectual property can be time-consuming and difficult. That’s where NFTs can help.
With NFTs, companies can create and manage unique and reliable digital identity credentials that can be used to access any network or system. For example, a company that makes software used to manage and track assets might want to create an access credential for a certain set of networks or systems from which the software must be used. This access credential can be stored on a “smart card,” which is a small digital device with embedded computer chips. When the user presents the smart card to the computer, the computer uses the identifier to look up the information on the network or system and grants or denies the user access as appropriate.
How Companies are Using Blockchain to Manage Real World Assets
Beyond managing and protecting their own assets, many companies are now looking to use blockchain to help manage and buyback their own intellectual property. This is known as “ tokenizing ” the asset. A token is a representation of an asset, such as a patent, trademark or copyright, that can be used as a value exchange between owners. For example, a company that owns a building might issue a blockchain-based token to buy the building itself from another company that wants to sell the building. This kind of transaction would require no middlemen and would involve the owners of both assets issuing blockchain-based tokens as a value-exchange.
Real estate continues to be a highly sought-after investment. With the increasing popularity of real estate as a rental or investment property, the demand for agents and brokers is strong. As a result, the field has seen an increase in competition, which has led to increased job insecurity, particularly for women.
Part of the appeal of real estate is its flexibility. With the ability to purchase and sell assets online and through real-time digital communication, it is possible to complete deals quickly and with less oversight. With the adoption of new technologies such as blockchain and other digital identification technologies, consumers have the ability to verify information associated with a transaction such as the identity of the buyer and the legitimacy of the seller.