NFTs are not just for digital art — here are some other uses for them
Both enthusiasts and investors are equally interested in non-fungible tokens. Do NFTs offer an interesting phenomenon that would last the test of time, or are they just another bubble that expands on mainstream popularity?
As a result of the significant possibilities associated with NFTs, real-world examples and use cases are needed to determine their impact. In the simplest terms, NFTs are digital tokens that represent virtual and real assets.
Several examples of NFT-based applications have demonstrated great improvements over legacy systems. While many people assume that NFTs are only meant for digital art and collectibles, NFTs have a much broader application than most people realize. Here are some notable enterprise use cases of NFTs that can help you better understand their potential.
Currently, the metaverse is one of the primary points of focus for technology companies, social media companies, and Fortune 500 companies. NFTs offer a unique approach to creating avatars in a digital world. In this way, you can have a virtual world in which the uniqueness of the avatar determines its value.
In-game cards offer an example of how NFTs can be valuable. As the game progresses, the in-game cards become more valuable due to rarity. When you have them as NFTs, you can securely keep their details on the blockchain. In this case, NFTs offer the possibility of setting up ecosystems that can provide value to digital objects.
Environmental Social Governance
NFTs are also used extensively for ESG. Several world leaders have called for reducing the carbon footprint, and the use of NFTs could contribute to this goal. Furthermore, non-fungible token applications in ESG could make use of blockchain’s unique identifiers for carbon trading and carbon markets. In addition, it explores the possibility of using NFTs, blockchain, and distributed ledger (DLT) to encourage the adoption of carbon trading.
Intellectual Property (IP) and Patents
Since they fall under the category of intellectual property, patents easily qualify as an illiquid asset of an organization. By implementing NFTs for patents, it would help in the tokenization of patents. As a result, patent owners could find profitable ways to commercialize their patents.
Interestingly, organizations could also have multiple assets which are associated with intellectual property rights. It is possible to share IP rights among multiple buyers through fractional ownership. Accordingly, enterprises could also establish additional revenue streams through these fractional ownership.
Music and Social Media
If you ask ‘what are NFTs used for?’’ — it will obviously take you to the world of music. In NFTs, content creators can remove intermediaries between them and their fans and followers.
Additionally, NFTs can be effective tools for ensuring that consumers have a unique shopping experience. A musician could, for example, issue 100 copies of their newest song as NFTs and put them up for auction. These exclusive pieces of music would be eagerly purchased by buyers for the highest possible price.
This use of NFT in music is most notable for its impact on the ownership rights of artists. In addition to earning royalties on each resale of the NFTs of their works, music artists are the creators of NFTs.
Social media is another industry using NFTs to promote social awareness. A number of prominent brands are utilizing NFTs to boost their social media marketing efforts.
Several renowned luxury brands, including Louis Vuitton, Gucci, and Dolce & Gabbana have come to realize the potential of NFTs. Fashion brands are looking at NFTs as a vital promotion tool. NFTs have distinct characteristics that can help fashion brands build trust with their customers.
In UAE, an artist named Amrita Sethi is also being recognized for her 2D animation NFTs connecting technology, fashion, and art.
Use cases of NFTs in the world of fashion could also lead to improved safeguards for product authenticity. Luxurious brands continue to lose revenue and reputation as a result of unauthorized copies of their products. With NFTs, consumers can be assured they are receiving authentic brands’ products.
As we can see, NFT use cases can impact productivity in a wide range of industries. Most important of all, NFTs are unique in their ability to change perceptions and management of assets. With a unique representation of physical and digital goods on a blockchain, NFTs offer a wide range of benefits.
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