# UNIC META-511 Session 11: Representing Off-chain Objects with NFTs By [Semui](https://paragraph.com/@semui-2) · 2023-07-28 --- **Session 11**: This article is a thread originally posted on Twitter (linked [here](https://twitter.com/iamsemui/status/1618567246628139011?s=61&t=mkIASVWz0Om7WNOff9-6Aw)) summarizing study notes from the Fall 2022 semester of the University of Nicosia’s online course, META-511: NFTs and the Metaverse. Course materials can be found at the UNIC META-511 github account [here](https://github.com/UniversityOfNicosia/META511MC-Course-Materials). The author is not affiliated with University of Nicosia or the META-511 faculty. * * * 1/ Summarizing my notes from session 11-1 of [@unicmetaverse](https://twitter.com/unicmetaverse) META-511 ✍️ In this session, [@punk6529](https://twitter.com/punk6529/) & [@gmoneyNFT](https://twitter.com/gmoneyNFT) discussed what is possible when we can link off-chain physical objects (or claims) to NFTs. Benefits range from combatting counterfeits to building secondary markets. * * * 2/ NFTs are often linked to off-chain data (IPFS, Arweave, etc.), but they can be linked to anything in the world, whether physical or intangible. Real estate, clothing, precious stones, or gold could be tagged to NFTs. Claims such as access to country clubs or concerts as well. * * * 3/ It is important to remember that we already work with abstractions when transacting objects or claims. When purchasing real estate, it is the legal documents that represent the transfer, not the land itself. NFTs are no different in that they are a social construct. * * * 4/ Counterparty risk is unavoidable for physical claims. These come in such forms as product delivery, stock availability, or quality issues. Conversely, the authenticity of the claim itself must also be validated. Physical claims require trusted counterparties. * * * 5/ By linking physical claims with NFTs, it becomes possible to create a secondary market to transact those claims. Holders of the redemption NFT are able to sell it trustlessly to other individuals. An example of a market that would benefit from this is hotel rooms. * * * 6/ If you reserve a hotel room but your plans change, currently your only possible action is to cancel the reservation. If the claim to a hotel reservation could be put on a secondary market as an NFT, both the buyer and seller could benefit by transacting directly. * * * 7/ NFTs could democratize access to a multitude of secondary markets, much like they have expanded access to art. As 6529 puts it, if you are able to help people make a voluntary trade they couldn’t do previously, you have increased the utility in the world, not decreased it. * * * 8/ NFTs work well with digital assets because they can be transacted permissionlessly. That isn’t the case for real estate or other physical objects of value. A regulatory bridge is needed for NFTs to represent physical transactions. Similar to e-signatures, this will take time. * * * 9/ Gmoney first saw the paradigm shift happening around digital scarcity when playing Fortnite with kids early in the pandemic. The concept of purchasing in-game “skins” was second nature to them, and Gmoney recognized digital natives would value digitally scarce assets. * * * 10/ Because of this, when Gmoney first encountered NFTs in August 2020, he was already familiar with the value of digital “flex.” His Twitter thread has become famous as the earliest example explaining digital status signaling with a CryptoPunk. [https://twitter.com/gmoneynft/status/1347023737166696448?s=61&t=mkIASVWz0Om7WNOff9-6Aw](https://twitter.com/gmoneynft/status/1347023737166696448?s=61&t=mkIASVWz0Om7WNOff9-6Aw) * * * 11/ While Gmoney could signal status digitally, there were no clothing brands that catered to the crypto native in terms of aesthetic, design, or quality. Seeing a need for a crypto native luxury brand, Gmoney established the [@9dccxyz](https://twitter.com/9dccxyz) luxury house and lifestyle platform. * * * 12/ A 9dcc genesis NFT voucher is redeemable for one shirt held by a custodian. Each shirt contains the NFT in an NFC chip, which can be scanned to verify authenticity. Each shirt can even issue a unique POAP 🤯 The aesthetic, quality, & verifiable authenticity make the brand. * * * 13/ Gmoney believes humans will always seek social signaling, whether it is physical or digital. As companies cater to this demand, it will be important to ensure they respect true digital ownership by using standard public interoperable rails rather than walled gardens. * * * 14/ That is it for session 11-1! There are many inefficiencies in real world markets and supply chains that would benefit from interoperable NFTs. Figuring out the hand-off point with the physical objects will be vital. Materials are at the link below 👇 [https://github.com/UniversityOfNicosia/META511MC-Course-Materials](https://github.com/UniversityOfNicosia/META511MC-Course-Materials) --- *Originally published on [Semui](https://paragraph.com/@semui-2/unic-meta-511-session-11-representing-off-chain-objects-with-nfts)*