6 Use cases of Private NFTs




Mar 6, 2023

The world of web3 is booming currently, and NFTs (non-fungible tokens) are one of the vital players leading to its growth. As NFTs gain popularity, one common question arises for everyone. Are NFTs just a growing fad that will diminish soon. Or are there practical advantages to using them? NFTs, and private ones, in particular, hold a lot of potential and the possibilities of what you can do with them, and their use cases, are endless. We look at them in this article on the use cases of private NFTs.

Use cases of private NFTs

High-value art

When we consider traditional NFTs, they are often built on networks such as Binance Smart Chain, Ethereum, and Solana. These networks do not support access control, meaning everyone can view ownership and transaction details. There is an issue of privacy for artists and buyers who do not want their transaction details to go public. And the same holds true about the original art work as well. Several artists would love to jump at the opportunity of encrypting the original high-def artwork and sharing it only with their buyer.

Private NFTs help solve this problem as they keep the commercial details of the transaction private, while also allowing you to encrypt the underlying asset and make it private Only the owner can access the underlying asset and private metadata.

Storing Social Security Number

You may think NFTs are all about arts and games. Their use cases though stretch far beyond the usual ones. One of the prominent ones on the list is storing sensitive personal information such as Social Security numbers. Developers can create a DApp that would allow the associated parties to send data from one contract to another.

They can keep the access restricted to only those who are authorized to view the information. Besides Social Security numbers, private NFTs can also help store other private information including KYC data and login information, among others.

Storing identity details

Private NFTs are a handy tool to store and secure user identity. The rapid growth of metaverse and virtual reality, in addition to the physical and online world, poses challenges to safeguarding identity. NFTs offer the robustness of blockchain security and decentralization that will help establish identities and secure them.

Users can then move freely in the metaverse as they will have a unique identity they can use across the web3 ecosystem.

Selling private data

Privacy is one of the strong points of private NFTs, as the name itself implies. Traditional blockchains are transparent as they allow everyone access to all transactions happening on the platform. This can be a problem for privacy-focused individuals who deal with sensitive data.Private NFTs enable users to sell private data without exposing its content to third-party individuals and groups. Users can rest assured their privacy will not get breached due to the secure working mechanism of private NFTs.

In-game assets

Online games and NFTs go hand in hand. One of the striking use cases of private NFTs in gaming is around in-game assets. Players can collect private assets to improve their chances of winning a particular game. The best part is that these assets will remain completely private from the opponent player. It adds an element of surprise and makes things exciting for the player. For example, a player can add surprise crates with the help of private NFTs. The surprise crates will remain visible only to the player who can use them at the critical junctures of the game and increase the chances of winning.

Tracking user data

Traditional methods of collecting user data in web2 have always raised eyebrows. Internet giants like Facebook had to face court trials due to increasing public resistance against collecting their sensitive information and selling it to third-party organizations.

Private NFTs can be a gamechanger in this aspect as they enable a better solution where user privacy does not get compromised. on-sensitive data of users can get shared in the form of NFTs. Similarly, users who agree to share their information can get rewarded.

A few examples can be cookies that your internet browser generates when you surf websites. The other possible use case is about driving data that can help road planning authorities in numerous ways, such as conducting road safety awareness programs.

Bottom line

The popularity of NFTs is witnessing a tremendous surge. When we talk about private NFTs, they offer several benefits to owners. These include the ability to sell their art tranaparently and at improved convenience,

Users can experience advanced privacy and robust security measures of the blockchain platform. As technology evolves and NFTs continue to grow in numbers, their usability and advantages for users will only increase with time.

About Arcana Network

Built for Ethereum and EVM-based chains, Arcana is the web3 infrastructure to easily onboard dApp users and enable user data privacy and ownership. Web3 developers use Arcana’s SDKs for a seamless, familiar user onboarding experience via social authentication and passwordless login. All user data is encrypted, secured with data access fully controlled by the users, and powered by blockchain.

Arcana has raised 2.7Mn USD from some of the leading investors and founders in the ecosystem such as Balaji Srinivasan, Founders of Polygon, Woodstock, Republic Crypto, and Digital Currency Group.

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Schedule a Demo

The call is completely free and no commitment is required.

Copyright © Arcana Technologies Ltd. All rights reserved.

Schedule a Demo

The call is completely free and no commitment is required.

Schedule a Demo

The call is completely free and no commitment is required.

Schedule a Demo

The call is completely free and

no commitment is required.