The advancement of science and information technology has recently introduced so-called NFTs. Let's find out in this article what they are and how they relate to the automotive world.

  • What are NFTs
  • The blockchain
  • NFTs in the Automotive world

The Automotive world was recently interested by NFTs, a few weeks ago. It was AlfaRomeo Tonale that emphasized this aspect. A significant step has been taken by the Italian company as the new SUV is the first model with a blockchain-based digital certificate that records the life cycle of the car in a secret, unique and non-falsifiable way. Before delving into the Automotive world and the applications of NFTs in it, let's try to understand what we are talking about.

What are NFTs

The term NFT is the acronym for Non Fungible Token, which is a non-fungible or non-reproducible digital token. The first aspect that we need to clarify is the meaning of "fungible" and "non-fungible". Any electronic money is a fungible good, as it can be replaced by another. The NFTs, on the other hand, are unique pieces as they cannot be replaced or replicated.

Therefore, when we use the term NFT, we are uniquely and securely referring to a digital product created on the web. Therefore, any digital object can be linked to NFT, from a simple photo, to a text, to an audio.

We can compare the NFT, in a sense, to the signature of the author and no one can say that a product is not original or that there are other copies if it is signed with an NFT.

To establish and define that these products are "non-replicable", however, a fundamental concept is needed, namely the blockchain. Simplifying as much as possible, we can say that it is a shared, non-modifiable digital register where all data transactions are stored that cannot be altered, manipulated or eliminated.

The blockchain

The blockchain is, therefore, a system that guarantees the traceability of transfers, as well as their verifiability and transparency. This is why it is an extremely safe and reliable system for various areas, such as banking or public administrations.

Before the introduction of the blockchain, in fact, any product on the web was easily reproducible indefinitely and no one could guarantee, for example, that a certain digital work had not already been copied in different units.

By introducing the blockchain, a sort of digital register has been introduced where all the information relating to the digital product is entered. In this way that product is unique and cannot be copied.

NFTs bind to this digital ledger to certify their uniqueness. The world of NFTs originated mainly in art. In fact, they have been fully exploited to guarantee the uniqueness of a digital artistic product. Whoever buys a work linked to an NFT, does not buy the work in the strict sense, but guarantees the possibility of claiming a right on that work.

The artist, in fact, as soon as he has created the work, will proceed to link it to the NFT, which is nothing more than a string of numbers 0 and 1 in the so-called computer language. Without going into too much detail, the work is then associated with a unique univocal and non-modifiable code, which is stored within the blockchain.

Ample space has been given to this topic by video games and the fashion world. In fact, several fashion houses have created really interesting collections in NFT. It was, therefore, only a matter of time that NFTs did not arrive in the automotive world.

NFTs in the Automotive world

The progenitor of all NFT Automotive was Lamborghini with its “Space time and memory” project, 5 photographs of which were auctioned at exorbitant prices.

However, the first Automotive house that started the NFTs was Alfa Romeo, as we said before. The Tonale is the SUV of Alfa Romeo's metamorphosis, towards the trend of electrified and everything related to sustainable mobility.

It brings with it the first NFT digital certificate integrated into the car. This document contains a presentation of the car and its history. This certificate therefore represents the entire life cycle of the product in a non-replicable, secret and non-falsifiable way.

It will therefore be possible to guarantee the correct maintenance of the car, as well as having a positive effect on the residual value of the car, in the event of resale. If one day, a person wanted to sell a car equipped with NFT, the latter would certainly be a source of credibility that everyone, customers, owners and dealers, can count on.

This new technological area, linked to the automotive world, is certainly interesting. The landscape will not change overnight because clearly a lot still has to be done: there are very few Tonale that in a few months will be able to count on an NFT certificate in the second hand world.

Since NFT is a concept of "non-modifiable values", everything concerning the car will be absolutely certified and tracked. In this way, the history of the car is absolutely declared within the blockchain. If one day, we wanted to buy a car with NFT, we could go back to everything that characterized the car in terms of sale and maintenance.

Trying to simplify to the extreme, the concept of NFT is a sort of unique tax code, essential for the serenity of all potential buyers.

We will see if other automotive manufacturers will position their NFTs within their new cars and how quickly this new technology will develop, which potentially will lead to a revolution in the automotive world.


credit photo STELLANTIS media press
https://www.media.stellantis.com/