NFTs are all the rage these days and for good reason! These digital tokens can represent just about anything, from a traditional painting to in-game collectibles. While seminal projects like Bored Ape Yacht Club and the Crypto Punks collections have brought the NFT sector to the spotlight, NFT use cases are expanding beyond digital art and the popular PFP (Profile Picture) NFTs. Therefore, art collectibles represent only one of the many sub-sectors in the NFT landscape.
In this blog post, we delve into the emergence of other exciting use cases for NFTs. From virtual real estate and music NFTs to the rise of phygital NFTs and provenance tracking, the applications for this technology are limitless.
NFTs Represent More Than Just Digital Art
NFTs (non-fungible tokens) have made waves into the mainstream limelight recently, primarily for their use cases in digital art. However, NFTs can represent more than just digital artwork. They are a powerful tool for assigning true ownership of almost anything that is unique and has value attached to it. With NFTs, anything from real estate and music to digital addresses can be given true ownership rights.
The potential use cases of NFTs are immense, and many do not seem to realize their full capabilities or utilities. From athletes, musicians, and other creatives being able to certify and authenticate their products & services with an immutable record to even owning a digital twin, these possibilities truly bring about a narrative shift where anything can hold value.
Early NFT Projects
CryptoKitties have certainly made a splash in the NFT sphere — these digital cats have become very popular among blockchain enthusiasts and casual gamers alike. Not only can CryptoKitties be traded and sold like any collectible item, but they are also uniquely valuable additions to any crypto and NFT enthusiast’s portfolio
Other projects like Crypto Punks represent seminal collections that established the foundation and propelled the rise of the NFT sector. While these projects belong to the digital art niche, NFT use cases have expanded to several other sub-sectors. Mainstream recognition of NFTs use cases came to the fore in 2021 when the digital artwork, Everydays: the First 5000 Days” by creator Beeple was sold at Christie’s Auction House for a staggering $69 million.
The Rise of Other Popular NFT Use Cases and Narratives
NFTs have been taking the world by storm over the last few years. From being recognized as a movement for art enthusiasts to owning a piece of a virtual world, NFT use cases soon took on a whole new dimension of ownership.
For example, projects like Decentraland and The Sandbox are virtual worlds where you can purchase land, build your own business, or even host a live event. Other narratives include the emergence of the Play-to-Earn sub-sector with pioneer projects like Axie Infinity converting in-game accessories into NFTs, effectively introducing a whole new revenue model for gamers. For a more detailed run-through of the different types of NFTs, check out this article.
NFT use cases:— Messari (@MessariCrypto) March 9, 2021
+ Digital Trading Cards
+ Provenance Tracking
+ Gaming items
+ Domain names
+ Tokenized luxury goods
+ Financial Products
+ Event Tickets
+ Tokenized Content pic.twitter.com/91neNFW5sa
What Can Be Turned Into an NFT?
Non-fungible tokens (NFTs) are taking the digital asset world by storm and have become a popular way to represent unique, valuable items. As mentioned, NFTs represent anything that is unique and has value, therefore this can include physical objects like cars or houses as well as digital assets like videos, artwork, music, and sports-related collectibles.
People have turned to NFTs to create and establish authentic digital ownerships of rare items that can be securely stored without fearing another individual claiming ownership. NFTs also allow for the quick and easy transfer or sale of these digital assets on dedicated NFT marketplaces, making it much more convenient for collectors or traders to buy or sell them. This technology presents exciting new opportunities and is rapidly becoming an integral part of our lives.
NFTs Address the Counterfeit Problem
NFTs are revolutionizing the way individuals trade digital assets. NFTs’ intrinsic value comes from the fact that each digital item held by a collector is completely authentic. With NFTs, the problem of counterfeiting is eliminated. All your digital assets, whether they be artwork, music, or collectibles, are secured with a unique and immutable code.
By leveraging blockchain technology, NFTs are unique digital assets that provide details of genuine ownership and verification of their authenticity. Therefore, if you are looking to develop a portfolio of rare collectibles or monetize your work as a creator, NFTs offer the utmost peace of mind as the technology establishes that individuals are trading authentic items.
Why are NFTs Valuable?
Non-Fungible Tokens, or NFTs, have grown in popularity in recent years, arising from obscurity to a sizable estimated market cap of $19.38 billion in 2022, according to Yahoo Finance. They are digital items with distinctive identifiers that can be purchased and sold in the same manner as a physical or tangible item, like a work of art. With blockchain technology, NFTs bring secure ownership and immutability.
As a result, NFTs are valuable to both creators and collectors because they ensure absolute credible ownership of a digital asset. Furthermore, the rarity of some of these tokens can drive up their prices astronomically. It’s clear that although the concept may be hard to grasp at first glance, NFT use cases are ever-growing and reflect an incredibly valuable asset in the digital world.
Can NFT Make You Rich?
With the recent rise of NFTs, people are asking themselves if it’s possible to make sizeable returns from buying and selling these Non-Fungible Tokens. While being a valid question since there have been numerous examples of lucrative trades in the NFT space, NFTs as an investment asset should be approached with caution as is the case with any financial investment.
Unlike traditional investments such as stocks and bonds, NFTs simply don’t have a history that enables investors to study past performances to identify noticeable trends. Furthermore, the quick ascent of this sector as a potentially lucrative sphere for investment has led to the rise of scams. Therefore smart investors must not only weigh the pros and cons of any new project before jumping in headfirst but also educate themselves on common scams such as phishing and rug pulls. Nevertheless, there definitely is potential for huge rewards if due diligence and risk management are done right!
Future NFT Use Cases
Non-Fungible Tokens (NFTs) are revolutionizing the way people showcase, sell, and trade digital assets. This new technology has been growing steadily in popularity over the past few years, with blockchain-based collectibles leading the way. Since the bull market of 2021, NFT use cases have expanded across several sectors. Looking towards the future of NFTs, an array of new possibilities could arise with their utilization as much more than just a form of marketable virtual items.
With regards to the gaming industry, they are likely to become potent drivers of a novel economic model for gamers, while other applications like authentication systems or even tokenized music may be possible. As more individuals and businesses recognize the power of this technology and how it enables digital itemization that was previously impossible on a large scale, the potential for inventive NFT use cases appears to be growing.
In conclusion, NFTs are unique digital assets that can represent anything that has value, from virtual land and digital cats to physical objects like houses or cars. NFTs offer an optimal way to collect and show off your favorite items without having to worry about counterfeits. Whether you’re just starting out with NFTs or you want to get in on their future potential, the myriad of NFT use cases is gradually being recognized among individuals and businesses. NFTs are an innovative technology worth diving into. The space remains in its growth phase and its potential applications will likely continue to evolve and expand.