10 + 1 Use Cases for NFTs
NFTs have quickly become one of the most significant elements of the crypto sector, and being highly flexible tokens, they have a variety of uses. While most of the digital art NFTs (non-fungible tokens) available today may appear to be overpriced JPEG files, NFTs are undeniably here to stay. So, what may NFTs be utilized for? More industries are using NFTs as the technology matures, including logistics, real estate, healthcare, music, art, fashion, and many others. All these industries are analyzed here to highlight what non-fungible tokens can achieve.
1. Logistics and supply chain
In logistics, blockchain technology considerably aids in identifying items and verifying their provenance, preventing counterfeiting. Another advantage of NFTs in logistics is that they are frequently assigned to original pieces, so they can be used to track luxury goods on their way to the end consumer.
Examples:
- TradeLens is a blockchain-based supply chain platform developed by Maersk and IBM that has recorded over 1.5 billion events and processed over 30 million containers since its launch in 2019.
- Amazon offers Amazon Managed Blockchain service which is a fully managed service that makes it easier to build scalable blockchain networks by allowing users to choose between public and private blockchain options, each of which caters to different use cases such as trading and asset transfer, retailers, and small businesses
2. Real Estate
In the real estate industry, NFTs have the potential to tackle a wide range of problems. Real estate is loaded with bureaucracy, with layers of intermediaries ranging from estate agents and banks to notaries and solicitors, all of whom demand a significant amount of time and money.
Real-world properties can be turned into NFTs to own and sell them digitally. Smart contracts, which allow a safe and straightforward transfer of ownership, can replace these intermediaries. NFTs are particularly useful to the real estate market since they are used to offer proof of ownership of assets, as well as to record the transfer of ownership and the appreciation in the value of an asset over time.
The history of ownership and rights, as well as transaction data and other information, will be recorded and stored on the blockchain, where it will be instantaneously available and verifiable. As a result, buying and selling properties can be nearly immediate, and NFTs can aid in enhancing real estate liquidity.
Another usage of NFTs in the real estate, is the potential to have fractional property ownership. For quite some time now, fractional property ownership has been a popular trend in the real estate industry. Homeowners can now turn their property into an NFT, which can then be divided further into numerous tokens, allowing for various buyers. By issuing tokens, homeowners can sell a portion of their property to a group of investors. Holding these tokens and receiving rent will be an opportunity for investors. NFT-based fractional property ownership could allow for the digital selling and purchase of properties without the need for an intermediary.
A group of investors could, for example, own a recently completed apartment building. Each apartment in this example represents a fraction of the entire apartment, and investors would gain access to their share via an NFT, which they could trade in various marketplaces in a decentralized way.
Also, NFTs can be used for mortgages since they allow for shared property ownership. A person who owns an NFT-backed property can use a lending platform to ask for a loan and place its NFT as collateral.
Examples:
- LABS is a digital real estate investment platform where individuals can buy and sell properties via blockchain.
- Propy is one of the real estate companies that has already begun to use NFT in its dealings. Recently, It sold a $650,000 home in Florida as an NFT.
- Bacon Protocol is an NFT initiative that allows people to borrow money using NFT-based mortgages. This can be accomplished by converting the property into an NFT and obtaining a secured loan for the value of the property. The loan is given through a decentralized protocol rather than through a bank.
3. Music
Another field where NFTs have had a substantial impact is music. NFTs could be utilized for music videos, tickets, exclusive access, marketing, and royalties, in addition to songs and songwriters. NFTs can represent a specific track published by the artist or corporation, making them valuable collectibles.
NFTs can also be used by streaming businesses for special events, adding value to their services. They can, for example, provide transparency for artists’ royalties when their music is streamed. It might possibly go further, allowing musicians to handle everything themselves, circumventing traditional companies and allowing for decentralized music creation and profit negotiation.
Examples:
- YellowHeart is non-financial transaction (NFT) marketplace focused on the music business. There are records, songs, and NFT collections of well-known bands including Maroon 5 and Kings of Leon.
- Audius is a decentralized music streaming service based on the Solana blockchain. The AUDIO token is used by artists, fans, and developers on Audius to interact with one another. Users can pay artists directly with AUDIO tokens on the platform, removing the need for multiple intermediaries in the artist revenue process.
5. Gaming
Game NFTs can be utilized in a variety of blockchain-based games. Racing, football, arcade, strategy, and even virtual worlds are all common inspirations for these games. In GameFi (intersection of gaming and finance), the NFTs can be anything from tracks, vehicles, characters, costumes, and tires to player cards, manager packs, and jerseys in football games, among other things. Users can buy virtual land, create properties, manage businesses, and communicate with other users using avatars in virtual worlds or simulation games.
NFTs can be highly uitilized in the GameFi sector including the Play-to-Earn model. Players can participate in a game’s play-to-earn environment by owning NFTs. They can earn money by accomplishing various in-game activities, such as winning tournaments and finding hidden items, using this mechanism.
Also, the NFTs acquired on the game can be used as assets. NFT assets can be sold for profit to other players. Players can, for example, sell NFT in-game items such as weapons, armor, and characters. The more valuable an item is, the higher it may be sold for on the market. Overall, gamers can save in-game purchases, sell them to other players, or transfer them to other compatible games using blockchain technology and NFTs.
Examples:
- Axie Infinity is a popular game that uses non-fungible tokens. NFT characters are created by players and used to challenge other players.
- CryptoBlades and Blocktrucks games also utilize NFTs in their gameplay. These games feature non-fungible gaming characters and items that can be utilized to compete with other players. These NFTs can be staked to improve their worth within the game.
6. Art
Digital art has become one of the most prominent use cases for non-fungible tokens today.
Real-world artworks are tokenized to promote authenticity and to transfer ownership to the artist or the highest bidder interested in purchasing a piece of art.
An artist can create an NFT that represents a work of art, providing adequate evidence to the buyer that the NFT-based art file is one of a kind. The immutability of blockchain allows for this level of rarity and uniqueness in a digital record. Furthermore, royalties can be incorporated into the NFT smart contract, providing a part of the sale back to the original artist, allowing artists to profit from the secondary sale of their virtual art.
Examples:
- Open Marketplaces: OpenSea, Rarible, Makersplace, LooksRare
- Traditional Auction House: Christie’s Encrypted Sotheby’s Metaverse
- Curated Marketplaces: KO, Super Rare, Foundation, CoinbaseNFT, Nifty Gateway
- NFT Gallery: jpg.space, Showtime
7. Fashion and Luxury goods
Blockchain-based NFT technology has a lot of potential in the fashion sector. It will not only allow consumers to digitally verify the ownership information of their products and accessories, but it will also reduce the risk of counterfeiting. NFTs also allow luxury firms to provide clients with priceless, one-of-a-kind experiences, boosting brand recognition, engagement, and revenue. NFT is primarily a connection with the next generation of buyers, generation Z, for fashion brands.
Users can scan a basic QR code on the price tags on apparel and accessories in the form of an NFT to get information such as where the asset originated. Additionally, it will offer users with information about those who previously owned the asset.
Examples:
- Burberry launched Blankos Block Party game, an open-world multiplayer metaverse fashion video game featuring non-fungible token (NFT). The limited-edition Burberry Blanko Sharky B NFT can be purchased, upgraded, and sold, as well as in-game NFT accessories, including a jetpack, armbands and pool shoes.
- Louis Vuitton: Louis the Game and Balenciaga: Fortnite x Balenciaga are more examples of how luxury brands embrace NFTs in fashion industry.
7. Ticketing Industry, Event Participation
Non-Fungible Tokens are also useful in the ticketing industry. On the blockchain, NFTs can be used for tickets to a sporting event or a concert. This ensures that each attendee has a unique ticket and that any ticket duplication is tracked and avoided. As a result, a blockchain-based ticket in the form of a non-fungible token can help organizations dealing with ticket distribution prevent fraud.
Example:
- NFT Kred is an initiative that develops NFT tickets for events, celebrities, and Enterprise Institutions.
- GUTS offers digital smart tickets, fraud prevention, reselling, and ticketing for all markets including theatres, concerts, live streams, festivals, and more.
8. Academic Credentials
NFTs can also be used to display academic credentials. NFTs can be used to offer proof of attendance, degrees achieved, and other essential data that is stored on the NFT chain and cannot be changed or hacked. By distributing tokens for each course finished and certifying any degrees achieved using smart contract verification systems, NFTs can build immutable records for courses taken.
Issuing a paper certificate will become obsolete in the future. NFTs will be used as a record of academic performance, and NFT education tokens can be transferred to others, proving that the person who holds it has earned an NFT.
Example:
- BLOCK.CO is the first platform to issue academic credentials for the University of Nicosia and they are available on Opensea
9. Collectibles
Crypto collectibles are digital items with special algorithms that add value to them. In a summary, a crypto collectable is a digital/physical item that has been verified through blockchain technology. Crypto-collectibles, on the other hand, are designed to be one-of-a-kind and limited in quantity, unlike other cryptocurrencies.
CryptoKitties is a well-known example of digital collectibles. CryptoKitties, which was released in 2017, is a blockchain-based game in which each NFT represents a virtual kitten that users may buy. Surprisingly, a multitude of factors influence the value of each collectible. In CryptoKitties, for example, it all comes down to a combination of uncommon aesthetics, features, and utility of those adorable tiny virtual cats.
10. Healthcare
The use of NFTs to store health data on the blockchain, which is an immutable record, eliminates a lot of data breaches. Individuals and organizations can also use the records encoded in non-fungible tokens to improve medicine and other health-care supply chains.
Because NFT transactions are validated on many nodes before being permanently uploaded to the blockchain, they can retain an individual’s medical records without jeopardizing confidentiality or risking tampering from outside sources.
In addition, healthcare practitioners can issue newborns with NFT Birth Certificates. Issuing one of these NFTs to each child can be a quick and easy way to generate a blockchain identity that is tied to their birth certificate.
An important part of healthcare sector is ensuring the provenance of medical goods to confirm their authenticity. Customers can have complete visibility and transparency of the things they are buying by using a blockchain-based system to trace items from the manufacturing site to each stage of the supply chain.
Examples:
- MediLedger is a leading example of a blockchain protocol that enables companies across the prescription drug supply chain to verify the authenticity of medicines, as well as expiry dates and other important information.
- Medicalchain is a leading example of a company that enables patients to see every time their medical records are updated and to give explicit consent every time they are shared with healthcare providers or others.
11. Domain name ownership
Owners of blockchain domains can use private keys to control their domains. Domain names on the blockchain are permanently stored in a public registry and cannot be erased or altered by a third party, removing worries about censorship and security.
Examples:
- Unstoppable Domains is one of the few established providers.
- Ethereum Name Service (ENS) or Trust Domains are alternatives.
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