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In 2020, Decentralized Finance (DeFi) has pushed the capabilities of blockchain to new limits. A chain of innovative products such as Automated Market Makers, Yield Farming, etc became extremely popular. Alongside such projects, a project called ‘Dontbuymeme’ also came to the limelight. Dontbuymeme is an NFT-DeFi project. Was it by chance? Let us find out.
Non Fungible tokens (NFTs) are considered the next big innovation in Blockchain. NFTs have been present in the ecosystem for quite some time. These are unique tokens on the blockchain which cannot be replicated, has unique features/ characteristics, and serves a specific purpose. The holders enjoy certain privileges bestowed by the individual NFTs.
Cryptopunks is one of the earliest NFT created. Each punk now sells for a fortune.
One of the earliest Cryptokitty went for sale for a price as high as $120,000.
Popular Use Cases:
1. Gaming: Gaming is NFT’s biggest use case till now. NFTs are used in multiple ways in gaming. Some of the notable projects are mentioned below with use cases
o Cryptokitties and game characters: Each kitty is an NFT which can be held exclusively by the owner and bred or traded. Such kitties hold a huge rarity value.
o Trading Cards: Gods Unchained is a pioneer in Trading Card Games. Trading Card Games is a simple and powerful NFT use case where unique in-game cards holding certain powers can be earned or traded in secondary marketplaces.
o Enjin, ERC 1155, and the Metaverse: Blockchain gaming is incomplete without Enjin. Enjin is the innovator behind the ERC-1155 standard which is now an acknowledged Ethereum standard. Enjin is the first project which found success in creating a gaming multiverse. Enjin NFTs can be used in multiple games. Holders of such NFTs will have different powers in different games. Games like Six Dragons, Age of Rust, etc are long-awaited and once launched can bring massive adoption.
o The Sandbox Lands: Each land in the Sandbox is an NFT. Holders of such lands get exclusive rights to gamify their lands, rent them to earn passive income, or sell them later at a higher price. Recently two 6×6 estates in Sandbox were sold for 210 Ether ($76,931), @28x the original price.
Note: The Sandbox is yet to make a full release.
o Decentraland virtual conferences: Decentraland had always been the trendsetter in the gaming landscape. The project is nowadays exploring and becoming popular for hosting virtual conferences. Recently the 1st Birthday celebration of Binance US was hosted in Decentraland.
2. Digital Art: Art NFT landscape is slowly exploding. Platforms like Knownorigin, Makersplace, Superrare, Rarible, etc are becoming increasingly popular. These platforms are giving birth to some interesting trends:
o Royalties: Superrare rewards artists with a percentage of the sell amount, every time a sell happens.
o A new breed of digital artists with a cult following is born. Check out Osinachi.
o Digital Galleries: Virtual galleries like Kate Vass are coming up. These galleries curate and purchase art from the blockchain art platforms and showcase them in their galleries for future sales.
o Whale NFT holders: Famous whales like WhaleShark.pro have emerged who have a major stake in many NFT Projects that have a large community and can influence decision making.
o Personal community tokens for artists: Roll is a platform that enables artists to create their community tokens. Such tokens can be used for future purchases of the artists’ creation.
3. Community building:
o Binance: This perhaps is one of the most important case studies. Binance has partnered with Enjin to bring out multiple NFTs to celebrate important events to gather the community to promote an offering. This is now rolled over to Binance owned Coinmarketcap. CoinMarketCap has released its first-ever set of collectible NFTs.
We will continue to explore further use cases of NFTs in Part 2 of this series. We will talk about the upcoming use cases of NFTs, some interesting projects to follow, and also what the future of NFTs holds. I would appreciate it if you leave your point of view in the below section for further discussions.
Read More: Building A Balanced Crypto Portfolio
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