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(Kitco News) – Non-fungible token (NFT) technology is one of the most promising blockchain use cases in the real world, as its possible applications range from artwork to identity verification.

A recent document released by the European Union Intellectual Property Office (EUIPO) shows that EU officials are considering using blockchain technology and NFTs to combat counterfeiting of real-world goods. I’m here.

The Secretariat proposed to allow intellectual property (IP) owners to issue digital tokens of physical goods, called “digital twins”. This is recorded on the blockchain and used to prove that the item is genuine.

“As goods are passed from one party to another, tokens are exchanged between digital wallets. A proof will be created,” the document said.

EUIPO plans to have the new system fully operational by the end of 2023. This will require the development of a registry system grouping all his IP holders, logistics operations and retailers within the EU.

The study also suggests that the system must be compatible with other supply chain monitoring technologies already in place to achieve its goals.

“The tool itself maintains interoperability and versatility with low effort and investment, thus minimizing technical and economic barriers in the process of widespread adoption,” EUIPO said. says.

NFT as a reward for solving problems with digital technology

Examples of NFTs come from Japan, where the government issues NFTs as a form of supplementary reward aimed at evaluating local government activities that utilize digital technology to solve local problems. one of the first countries to do so.

Japan’s Cabinet Secretariat was responsible for presenting the awards at the recent “Summer Dejiden Koshien 2022” ceremony attended by Prime Minister Fumio Kishida.

A total of seven mayors received NFT awards to drive the digital economy, such as using electric vehicles to make local deliveries and using cameras on mobile devices to track changing traffic conditions in real time. Efforts were evaluated.

Non-transferable NFTs were issued on the Ethereum blockchain using the Proof of Attendance Protocol (POAP). Hazama Base, Indiesquare’s low-cost blockchain platform, was used to create the token.

Despite the significant setback in the NFT market amidst the massive decline in cryptocurrencies, the underlying features and applications of NFTs are expected to grow in the next few years with widespread adoption of NFTs and a wide variety of aspects of the global digital economy. Suggests to be integrated on the side.