NFTs are on the right track towards achieving mainstream adoption — and for good reasons. Previous advancements in DeFi and stablecoins, growing interest from investors, and, of course, massive interest from artists, designers, creators, and collectors.
What makes NFTs attractive is, undoubtedly, their collection of native properties: proof of authenticity, ownership, and uniqueness of assets that are accessible in a verifiable, transparent, and immutable manner. Therefore, NFT use-cases can be tailored to accommodate the needs of individuals with different professions, expertise, goals, and aspirations.
In this article, we’ll briefly go through the correlates of tokenization, as well as highlight its potential that is manifested by means of NFTs in various popular use-cases from the creator’s perspective.
If you landed here without being sure about what NFTs even stand for, take a side-road in order to get up-to-speed using our relevant guide.
The Concept Of Tokenization
NFTs are tokens primarily characterized by their non-fungible state. In other words, one could say that NFTs embody the tokenization of unique assets.
Tokenizing an asset involves issuing a digital token on a blockchain, whereby that token represents an underlying tangible or intangible asset. Essentially, ownership of the asset is represented by ownership of the token on the blockchain.
Additionally, tokenization enables fractional ownership of the respective asset, be it physical or digital. For instance, a valuable and physically indivisible asset such as fine art or real estate could be represented by multiple tokens, thus allowing for multiple fractional owners of the asset.
In fact, tokenization allows the creation of a new financial system — a Token Economy. In this way, both investors and sellers can enjoy some key benefits, such as greater liquidity, faster and cheaper transaction costs, transparency, and, of course, accessibility.
What’s There To Do With Nifties
When we are talking about different NFT use-cases, the discussion is essentially about all those different assets that can be tokenized by means of NFTs.
Given the list of tokenize-able assets can be rather endless, for the purpose of this article we will focus on the most popular NFT use-cases for creators and categorize them according to the different industries they are promising to disrupt.
Art is one of the first industries that’s been mostly benefited and uplifted by its convergence with the NFT scene. Therefore, it’s not surprising that digital art is, undoubtedly, one of the most popular NFT use-cases, with traditional, as well as newly emerging visual artists, getting increasingly involved.
The tokenization of such digital creations is possible in various formats such as .png, .jpeg, .gif, etc., and can be distributed in several NFT marketplaces in the likes of OpenSea, Rarible, Cargo, and Mintbase. It is likely the case that each marketplace has its own requirements, limitations, and restrictions with regard to file size, file format, and dimensions, as well as its own artist royalty policy. Of course, the DYOR (Do Your Own Research) principle applies here as well, so you shouldn’t hesitate to contact the marketplace of your preference for more information or feel free to seek help from our Discord community.
Despite digital art being currently the most mainstream NFTxArt use-case, the tokenization of physical fine art has the potential to grow accordingly. By virtue of NFTs, the distribution and promotion of tokenized physical fine art creations, such as paintings, sculptures, furniture, and collages, gets intertwined with the virtual, crypto-based realm and can, therefore, elevate one’s creations as well as grant them access to 24/7 liquid markets.
When it comes to physical/digital asset tokenization, the music industry is no different than the visual and/or fine art industry. Whether you are a musician looking to release, promote, and distribute your digital audible specimens (in standard formats like mp3 or m4a), physical audible specimens (record vinyl, compact discs, etc.), or both, this is all possible through various minting platforms.
Some highlights from traditional artists already exploiting the scene include 3LAU, Aphex Twin, and Deadmaus.
Still, minting music is not just a new form of media or a SoundCloud alternative, but rather a new way to create immersive experiences, similar to what Conlan’s AsyncArt project brings to the table. Some popular audible NFT publishers out there would be Ethereal Audio, DAO Records, and AsyncMusic.
An emerging NFT use case that combines musical and visual features in the field of audiovisual art. Videographers, clip makers, movie makers, and, even, comedy makers can all profit from releasing tokenized versions of their creations via NFTs, overcoming the pitfalls of the current painstaking process of releasing under a label’s / record company’s stamp. As this NFT sub-industry is still at its embryonic stage, there is no empirical evidence of various formats (e.g. mp4, avi) being more “suitable” than others. However, the versatility of the nature of NFTs allows for experimentation with different formats, which are only bound to the compatibility offered by NFT marketplaces. We expect the demand to grow, and therefore marketplaces will have to widen the variety of supported formats in order to stay competitive.
As of now, the fashion industry seems to be the successor of the art industry with regard to popularity and mainstream adoption. We have already seen top-shelf players in the likes of Louis Vitton, Balenciaga, and NIKE experimenting with tokenized fashion/apparel clothing that is authenticated and distributed by means of NFTs. Nevertheless, when it comes to tokenized fashion, there are three main subfields: digital wearables, physical wearables, and phygitals.
Tokenized digital wearables are essentially digital pieces of clothing that are meant to accommodate the dressing needs of avatars in virtual realities. Given there are already different virtual worlds, such as Cryptovoxels, Decentraland, Somnium Space VR, each world comes with its own format and respective procedure for creating digital wearables and equipping your avatar with some fresh fashion pieces. Such formats include but are not limited to vox and obj files. Despite this being a very fresh terrain of the broader fashion industry, several projects/individuals are actively involved, while even well-established brands (e.g. Atari) have tapped into the scene.
On the other hand, tokenizing a physical wearable item is a different story, much like all tokenized physical assets. From fast-fashion products to high-end branded fashion items, tokenization is a possibility that can indisputably elevate the distribution and promotion of such assets. Even freelance individuals can create their own collection of clothing, tokenize it, and promote it via NFT marketplaces, competing against bigger brands and having equal chances of selling their items.
Last but not least come the phygitals. This newly emerged term refers to the combination of the two aforementioned categories, where a single NFT may contain a physical piece of clothing as well as its digital twin. In this case, creators can engage with conceiving wearables concepts that are not limited by their nature physical or digital), but are offering a more interconnected reality where avatars and real-life individuals can wear the same piece of clothing!
When it comes to choosing an NFT marketplace for publishing your creation, there is a wide range of available options, each coming with its own requirements, perks, features, services, and policies. You can choose from marketplaces and minting houses that offer an automated way of minting and uploading your NFT to ones that just require you to send them your artwork and all the rest is being taken care of by the marketplace. The choice, undoubtedly, remains to the creator.
Some of the most popular minting toolsets for beginners out there would be:
A detailed guide on choosing the right fit for your first NFTs is being cooked as you read this. Subscribe to our Medium to get notified when it drops!
As the market for NFTs representing digital assets has already grown immensely, finding an NFT marketplace to release your digital artwork shouldn’t be a hassle. However, releasing and distributing NFTs containing physical creations is a different story.
Physical NFTs are slowly but surely gaining momentum, thus, so far there are only a handful of projects that offer the possibility of releasing those physicals. The evolving demand for such NFTs makes for a perfect match with RareCandy3D’s vision, which has already expanded to accommodate physical asset creators and empower them to promote, distribute, and profit from their creations, while overcoming the current shortcomings of the traditional modus operandi.
We are a virtual publishing house of scarce NFT originals as well as a distribution channel for traditional indie artists, brands, record labels, and products that want to tap into the $2T crypto market without tackling the learning curve that sustains the gap between the two commerce fields.
RareCandy3D is committed to pleasing your audiovisual and emotional sensors since 2020.
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