7 NFTs use cases.
NFT is an abbreviation for non-fungible tokens, they are one of the central token types on the blockchain. The term “non-fungible” refers to interchangeable goods. That means that NFTs are unique. They have various use cases, because of the flexible nature of these tokens.
1- Digital art: Why NFTs could change the art business? Digital artists, who are often affected by unattributed or stolen work, could expand their art with creator rights built in. On the buyers’ side, owning an NFT has the potential for big dividends if the art rises the value.
As Nfts are non-fungible, they are ideal for creating one-of-a-kind art pieces. As such, the artist can assure customers of distinctive art pieces. This couldn’t be possible if these tokens weren’t interchangeable.
Platforms like OpenSea provide the artist with an easy-to-use system making it easier to sell and purchase NFTs. This marketplace has seen exponential growth in the past year.
2- Collectibles: A new way of hobbyist trading cards. Just like traditional collections, scarcity helps drive value.
The NBA, for example, sold NFTs of a video snippet of memorable moments from the game, only one fan can own a particular clip. Marvel created a limited number of 3D digital figures for its Spider-Man and Captain America franchises.
3- Memberships, Tickets, and Proof of attendance: Start using NFTs to legally solve reselling tickets could be a good idea. Club memberships or season passes for sports teams may be verified, held, and transferred as NFTs.
NFTs can also provide exclusive access to certain events. This isn’t solely applicable in digital settings but for physical events and real-life happenings alike. A great example here is the Flyfish Club which is branded as the first member’s only dining club where exclusive access is bought on-chain in the form of an NFT. As such, holders of a token will receive access to cultural and social experiences.
POAP (proof of attendance protocol) are NFTs that are given out for free to event attendees, which is verifiable proof that the holders attended that specific event. They are like digital concert tickets, except that they are secured by blockchain technology.
4- Customer Experience: NFTs offers the unique ability to directly connect a creator with a buyer. Brand communities built around NFTs could offer exclusive access to consumers and, in turn, foster brand loyalty. The Nike brand has patented, though not yet produced, NFT-linked sneakers ('crypto kicks') along with the ability to mix digital pairs and make them physical.
5- Education: MIT already uses blockchain technology to issue virtual credentials, and NFTs could work similarly. NFTs may also be used for academic results and student records in general.
6- Music NFTs: Another exciting sector that can potentially benefit from NFTs in the music industry.
A more efficient and advantageous way for individual artists to monetize their work might come in the form of music NFTs. This means that the artists can truly own their work, including trademarks, copyright, etc. This information can be stored in the metadata of a token. Music NFTs would also allow fans to directly band together and support their favorite artists. As such, this means that NFTs have the potential to eliminate unnecessary intermediaries, something that will positively benefit artists.
This is one of many compelling use cases for NFTs in 2022, and we’re seeing investments being poured into music NFT projects. As such, it can be quite exciting to follow along and see how this sector develops and how NFTs might come to revolutionize the music industry.
More info: https://www.airnfts.com/post/best-nft-marketplaces-for-music
7- Digital Identity: This may sound quite far-fetched, but it might become a reality, thanks to NFTs and blockchain technology.
The characteristics of NFTs and the security of blockchain technology make them ideal for creating virtual identities. NFTs might enable self-sovereign identities (SSIDs). These are digital identities that individuals control. As such, people won’t be dependent on governments and other centralized institutions. This will be an exciting sector and is one of the NFT use cases to keep a close look at in 2022.
Moreover, having a secure identity is essential, and they are becoming increasingly difficult to safeguard, even in familiar digital and physical settings. Now, throw the metaverse into the equation, and it is becoming even harder to keep one’s identity safe. This is where NFTs enter the picture, as they are an efficient and secure way to establish metaverse identities. As such, NFTs might come to play an essential role as the world gets more digitalized and the metaverse evolves.
