What is an NFT with Utility and What Goodness Does it Offer?
In 2021, when I met the founder of Galaxis.xyz for the first time after many years, he told me, “The use cases for dynamic NFT are currently completely blue ocean. We are at the beginning of everything and it’s up to us to find out which areas and which uses we can come up with. In 2022 we will have some solutions for the use of NFTs, but the possibilities are still endless.”
First of all, let’s find out what is the meaning of utility. Perhaps it can be most accurately defined as a feature, a way of adding some kind of attribute, capability or added value to the pieces in our NFT collection. Initially, NFT was just a digital “asset” that could be bought, sold or collected. Now that has changed completely.
The functionality of dynamic NFTs goes far beyond the possibilities of traditional .jpg NFTs. In the recent past, a multitude of decentralized solutions have emerged and the intermediary is very often the NFT itself.
Galaxis.xyz launched the first generation of dynamic NFTs in spring 2021. Even then, it was already clear that NFTs were well suited for facilitating services, rewarding communities and supporting loyalty and discount schemes. What makes its special features so great is that it eliminates the need for intermediaries to buy, allowing athletes, artists and celebrities to provide digital value to their fans almost directly, and to create a more personal relationship between them and their community.
Features have also been introduced to give NFT owners physical objects or virtual possessions. Today we can buy real things in a digital campaign, reaching a target audience that can only be reached through NFTs.
Simple utilities for communities
It is almost mainstream today to have a multitude of loyalty, membership and support NFTs. An NFT is an excellent gateway to becoming a member of a club, community or special society. By paying our entry and membership fees, we become part of an exclusive club. We can do this without any difficulty, anywhere, anytime. Membership schemes offering clearly defined opportunities through smart contracts are now the basis of many digital communities.
Access and ticketing systems combine traditional solutions with the exclusivity offered by NFTs. Users are usually encouraged to buy NFTs with extras that are not possible with traditional tickets. A sports or music fan is willing to pay much more for his ticket in the hope of a more valuable relic. Managers in the music and sports world are now aware of this.
A multitude of sponsorship solutions has emerged in the second wave of NFT utilities. NFT now offers the possibility to develop a DAO (Decentralized Autonomous Organization), or shared decision-making system. Governance in such communities can be balanced by adding weight to the value of NFTs.
The benefit for an individual
As NFT collection owners, there are now many options for artists, sportsmen and sportswomen, or well-known celebrities. The most creative solutions are needed to appeal to their fan community. There is certainly no lack of creative solutions and more and more campaigns are offering feature-rich NFTs.
Such a utility can be anything, of course, with one requirement: it must be unique and exclusive. There are those who dazzle fans with original, exclusive items, and others who offer limited edition specials to NFT buyers.
Autographed items and opportunities to meet celebrities are also in trend. Galaxis has offered several of these in the recent period. For example, the GRD campaign makes digital autographs available to fans of famous fantasy illustrators. Real paintings and original sketches, which can be obtained through NFTs, can also be a huge attraction.
Versatile art
The world has also opened up for artists through utilities. Digital artwork can take on dynamic forms, moving away from static solutions. Animated, changing, and transforming, with a wide range of special effects, NFTs also open up the possibility for metagames. By assembling several pieces together, we can create unique NFT pieces of greater value, which, when put together, can become a new work of art. The Tokaido Cats collection offers true collectors a special opportunity in a similar way.
In addition to music, video and 3D techniques, cutting-edge technologies have emerged to add exciting new dimensions to digital artworks.
Real value utility driven NFTs provide
A multitude of dynamic solutions is looking for ways in which the NFT can offer an immediate solution to enable the user to easily obtain some digital value, cryptocurrency, from it, without sales.
Some of these solutions display the collected cryptocurrency through the NFT itself. Others, such as Play to Earn games, offer digital revenue in exchange for some activity. Virtual and real land are exchanged, multi- and metaverse are built, realising the many uses of the NFT.
Increasingly, the ownership of real objects is tokenised. Museums and collections around the world are looking for the latest solutions to the digital culture that will benefit them.
Using the functionality of NFTs, patronage and charity schemes are being built. Disruptive banking and alternative financing solutions are emerging. A new methodology for community funding is emerging before our eyes. We can be active shapers of all this if we don’t think of NFTs as a multitude of collectable sports cards. Almost anyone can enrich the already diverse world of NFT utilities with a new idea or creative solution. The “blue ocean” offers exciting opportunities for brave explorers.
About Galaxis
Galaxis is a cutting-edge, no-code, out-of-the-box NFT toolkit that transforms and enhances the relationship between any creator and their community by infusing NFTs with unique utility traits, owner-specific benefits, and interactive communication opportunities. Galaxis’ end-to-end solution provides an essentially unlimited suite of decentralized community tools that allow anyone to grow, engage and monetize their audience.
Written by Tamas Peter Turcsan
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Disclaimer
For legal purposes, we have to include this disclaimer. This of course doesn’t mean that we won’t do our absolute best to make every feature possible, but since this is new technology and new legal territory, we need to make sure that the terms and conditions are in order.
Galaxis / Ether Cards makes no representation, warranty, or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information in any posts. Any assumptions, opinions, and details expressed in any Galaxis / Ether Cards blog or community posts constitute Galaxis / Ether Card’s judgement as of the date hereof and are subject to change without notice. Any projections or claims contained in the information are based on a number of assumptions including, but not limited to market conditions and the current status of Galaxis / Ether Cards, and there can be no guarantee that any projected outcomes will be achieved.
Galaxis / Ether Cards does not accept any liability for any direct, consequential, or other loss arising from reliance on the contents of the information in this post.
