How NFTs Fit Into The Real World
Non-fungible tokens have become more popular than ever before. Currently, almost everyone on the internet has an idea of NFTs. However, many individuals still believe NFTs are a fad, and all the hype will eventually burst like a fragile bubble. Some others do not fully grasp NFTs. They see NFTs as just a ‘boring’ representation of a digital image and nothing more.
Interestingly, NFTs are more than just a digital representation of art or music. While these blockchain-based tokens are still in their early stages, different social and economic sectors effectively utilize non-fungible tokens.
Today, NFTs are being used in the gaming and sports world, real estate, medicine, and of course, the world of finance. Interestingly, more innovations are currently in place to build on the existing use cases of NFTs.
NFTs in the Gaming Ecosystem
According to Statista, the estimated number of active video gamers worldwide is 2.95 billion. It is no news that many of these individuals are currently turning to blockchain games. The use of NFTs and the ability for players to earn as they play make blockchain gaming very exciting.
Axie Infinity is a popular game that uses non-fungible tokens. Players breed NFT characters, which are used to challenge other players. After the combat, winners are rewarded with SLP tokens.
Other games like CryptoBlades and Blocktrucks also utilize NFTs in their gameplay. These games have gaming characters and items in the form of non-fungible tokens that can be used to compete with other players. These NFTs can also be staked within the game to increase their value. A lot of gamers have been trading in-game NFTs profitably.
NFTs for Sport Fans
The use of NFTs in sports is similar to that of gaming. However, sporting NFTs have a more emotional connection to humans than gaming NFTs. Many individuals will want to own an NFT launched by their favorite sports star.
Autograph is an NFT platform that helps sports fans develop a connection with their favorite sports person. The platform features original NFTs from popular names like Tom Brady, Tiger Woods, and Naomi Osaka. On Autograph, fans can purchase limited edition digital collectibles created by sports icons. Fans who own these special NFTs are given access to special privileges like getting exclusive content from their favorite star.
Imagine if all fans who owned a unique digital token from the Tom Brady collection were given access to an inner circle meetup with the celebrity. Also, imagine if some rare collections of Naomi Osaka’s Tennis balls are represented as digital tokens, and all owners of the limited digital token will be permitted to get an autograph from Naomi. The uniqueness of the tokens makes it possible for actual owners of NFTs to enjoy a premium experience.
The Use of NFTs in Real Estate
NFTs can be used to provide proof of ownership of assets. More so, timestamped NFTs can be used to record the transfer of ownership and appreciation in the value of an asset over time. This makes non-fungible tokens useful for real estate. These digital tokens can provide transparency during transactions as potential investors can access all vital data before investing in a property.
In the metaverse, projects like Decentraland and Sandbox have gone a long way in promoting real estate. Many celebrities have even purchased real estate in the metaverse. NFTs play a vital role in this virtual economy. Real estate like malls and apartments are represented virtually as NFTs.
Meta-fans have predicted that users who purchase virtual real estate on the metaverse will benefit financially from the scarcity in the coming years. Just like the real world, where real estate appreciates over time, virtual lands also have the potential to increase in value. Logically, virtual properties owned by influential individuals like Elon Musk will be more valuable than that possessed by random individuals.
The Use of NFTs in Medicine
As strange as it may sound, NFTs have their role in the medical field. NFTs can neither cure diseases nor relieve pains but can be used for record preservation.
Interestingly, between 2012 and 2013, more data breaches hit the health care industry than the banking and military sectors combined. About 90% of health organizations have lost or leaked vital data related to their patients.
The use of NFTs to store health data on the blockchain, an immutable record, solves this data breach problem. Individuals and agencies can also use the records embedded in non-fungible tokens to improve the supply chain of drugs and other health care items.
NFTs in the World of Finance
NFTs are not the primary tool used in finance. However, they have a part to play in decentralized finance. Since digital tokens have value, they can be exchanged for cryptocurrencies or even fiat. At the moment, it is even possible for owners of these valuable digital assets to use their non-fungible tokens as collateral for obtaining loans.
On Nftfi, individuals can use digital assets to obtain loans. Assuming you own an NFT and are currently in need of cash, you can use the NFT as collateral to get a loan. To do this, you will need to connect your wallet to Nftfi, approve the use of the NFT as collateral, and swap with your preferred cryptocurrency. The digital token must be valuable for the transaction to go through successfully.
Aside from borrowing and lending, NFTs can be used as payment for goods and services. More Web 3.0 fans are accepting NFTs for their value. While digital tokens can’t replace money, they sometimes play a similar role to cash for DeFi adopters.
Contrary to what some NFT skeptics believe, non-fungible tokens are not just over-hyped pieces of digital assets. They have use cases in the gaming, sports, real estate, and finance sectors. They are also helpful in many other fields not mentioned above, like academics, fashion, and the music industry.
Realistically, NFTs can be utilized in any field that requires data protection, proof of ownership, and transfer of value. We can expect more use cases to be unveiled in the coming years as the world of digital assets keeps expanding.
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