You might not be able to steal a Tesla Model X, but you do need to put it in park before you walk away. If parked on a busy city street, it might be dangerous in and of itself. What if someone didn't notice the “P” on the dash and drove off? What if you forgot where you parked it? Fortunately, you can use an NFT and an NFT wallet to circumvent this situation. There are many firms that produce NFTs for a wide variety of goods, from houses to vehicles. You can purchase a Tesla Model X NFT for your smart car key fob. You can then record that token on a blockchain. With the NFT wallet offered by CryptoKitties or the forthcoming Fetch app, you can use your token to track your Tesla's location. Because the database is distributed, no one can tamper with the data.
Tokenization is often touted as the next frontier in digital assets. But what does that mean? In short, it’s the process of breaking a digital asset into smaller units that are each recorded on their own individual ledger. These smaller units are called “tokens” or “tokenized” assets. The most popular tokenized assets today are those found in NFTs (Non-Fungible Tokens). We explain exactly what they are and how you can use them to start your car. In brief, an NFT is a type of token that represents anything that is non-fungible, meaning each unit is different from the others. They are also known as digit tokens, which means there aren’t any physical tokens but rather just a code representing ownership. Instead of using one big database to store information about all the different coins or tokens, NFTs use multiple databases so each token is recorded on its own ledger with its own unique identifier. Read on for more details...
What Is a Non-Fungible Token?
A non-fungible token (NFT) is a type of digital token that is used to represent something that is non-fungible. Non-fungible assets are items that are not interchangeable — for example, one house is not the same as another house. Each token is used to represent one specific instance of a physical asset, identifying it as unique and unable to be substituted. For example, you can use an NFT to represent a specific car. If your friend gets into an accident and damages the car, you can sell the car’s NFT on a decentralized marketplace and get the money to buy a new one. You can also use tokens for digital assets that are non-fungible, such as a popular song or a work of art. Each token would be recorded on a ledger that corresponds to its specific token identifier. NFTs can be used in a variety of industries, including art and collectibles, gaming, real estate, and more.
How to Use NFTs to Start Your Car
Let’s say you buy a new Tesla Model X. While it’s almost impossible to steal the vehicle, you do have to put the car in park before you can walk away. If the car is parked on a crowded city street, that could be risky in and of itself. What if you needed to leave the car and someone didn’t see the “P” on the dash and drove off? What if you forgot where you parked it? Fortunately, you can use a combination of an NFT and an NFT wallet to get around this issue. You can buy an NFT for a smart car key fob. There are a number of companies out there that will create NFTs for just about anything, from houses to other vehicles. So, you can buy a token that represents your Tesla Model X key. That token will be recorded on a blockchain. Then, you can use the token in conjunction with an NFT wallet, such as the one offered by CryptoKitties or the forthcoming Fetch app, to track where you parked your Tesla. Because the token is recorded on a decentralized database, no one can change the information unless they have your private key.
Pros of NFTs
- Security - NFTs are recorded on a decentralized database that is difficult to hack, so they are more secure than other types of tokens. That means you’re less likely to lose your car if it’s parked on the street or in a parking garage. - Tax benefits - In the U.S., you can write off the value of the car as a tax deduction if you use an NFT, making it an inexpensive solution. - Savings - If you are worried about forgetting where you parked your Tesla, losing the keys, or someone stealing the car, this solution is much cheaper than having to install an expensive security system.
Cons of NFTs
- Cost - While it’s not a big investment, buying a token for a new Tesla key fob is probably more expensive than buying a regular key. - New technology - While NFTs are a newer technology, it is still unclear how long they will be around, how secure they will be, and what kinds of tax breaks they will qualify for. - Dependance on technology - Like any other digital asset, relying on NFTs means you have to be connected to a network that works and is fully functional. If you lose internet access, you also lose access to your car.
NFTs are a new kind of digital token that can represent anything that is non-fungible, such as a specific car or a work of art. They are recorded on decentralized databases and can be used in a variety of industries, including art and collectibles, gaming, real estate and more. NFTs are a great way to track where your car is parked and to start it remotely, especially if you drive a Tesla.