NFT use cases are diverse, but at its core, Non-Fungible Tokens (NFTs) are a blockchain technology that securely stores information. Typically, NFTs consist of a file and some metadata, and once recorded on the blockchain, the file cannot be altered due to the power of decentralization. The metadata attached to the NFT includes information on all previous owners and any price changes that have occurred.
Due to the versatility of NFTs, this technology can be utilized in various ways. In this article, we will explore some of the most popular nft use cases.
What Can NFTs Be Used For?
Keep in mind that the NFT industry is still in its early stages of development, meaning that the described use cases are only a few areas where the technology has already shown its potential. Non-Fungible Tokens have even more capabilities, and it’s up to us as human beings to explore and enhance other businesses and aspects of our lives. Understanding practical examples of nft use cases may assist you in making informed decisions when investing in NFTs.
1. Event Tickets
Concerts, sports/esports tournaments, fashion shows, and other events are a source of entertainment that offer us unforgettable experiences. However, as time passes, the memories of such events tend to fade away. NFTs cannot alter how our memory works, but they can add value to event tickets and create an exceptional connection to the past.
One of the practical benefits of NFTs in this use case is that they enable hassle-free ticket authenticity verification for organizers and viewers alike. In addition, owning an NFT ticket to a concert or a game of your favorite team can be an emotional experience that can later be transformed into real value.
Historical NFT event tickets establish a link between the viewer and the event, and their market value is based on their exclusivity. It’s worth noting that NFT use cases in the events industry are just beginning to surface, and there is room for further exploration and development.
2. Real-World Art
NFTs have found another use case that bridges the gap between the physical and digital worlds. By attaching metadata to a painting and storing it in a blockchain, the technology provides strong protection against fraud. The authenticity and ownership of a specific artwork become indisputable, creating a new layer of security for the art industry.
However, unlike other NFT use cases, the art industry mostly relies on traditional sales rather than free and easy trades. Nevertheless, NFTs have added value to the industry by offering a new level of trust and transparency.
In the world of music streaming services, the value of a single track may seem almost nonexistent. However, NFT technology changes this dynamic, allowing one person to become the exclusive owner of a song or composition.
The possibilities with NFT music are endless. First and foremost, owning a favorite song or album by a musician you love brings deep emotional satisfaction. Additionally, NFT songs or albums by popular musicians can quickly become more valuable, with some individuals buying them as an investment that could yield substantial revenue in the future. Young musicians looking for investors can also benefit from NFTs, as the technology provides a new avenue for raising funds and gaining exposure.
Many music artists, including 3LAU, Jacques Greene, and LATASHÁ, have already embraced blockchain and NFTs by releasing their tracks using this technology. Other big names in the music industry, like Kings of Leon and Eminem, have taken steps to explore the NFT world by minting albums and adding music videos to their NFT collections.
4. Virtual Universes
As we continue to move our lives into the digital realm, NFT technology expands the possibilities for expressing our unique personalities and connecting with others. By creating a virtual reflection of physical reality, NFTs add an important aspect of uniqueness, where digital items are unrepeatable and have real value.
One of the top NFT use cases is creating virtual universes where users have avatars to walk around and interact with others. Within these universes, users can purchase various items, such as outfits, houses, decorations, and vehicles, which can also be sold as NFTs. Some projects even provide simplified 3D modeling tools for creating and selling unique objects.
Projects like Decentraland and The Sandbox have created virtual universes with many features of the real world, thanks to blockchain technology. Others, like Bored Ape Yacht Club, create closed social clubs within a specific digital space that can only be accessed with an NFT ticket.
5. Web3 Gaming
NFTs provide an exciting opportunity to engage with games beyond just being a consumer or observer. Players can now become active participants by creating new NFTs through in-game actions or participating in internal activities like battles and races.
While the gameplay mechanics of NFT projects are still limited, there is great potential for growth in this area. Various card games, such as Splinterlands and Gods Unchained, have already embraced NFTs, and other notable NFT games include CryptoKitties, Axie Infinity, and Guild of Guardians.
Big brands like Square Enix and Ubisoft have also entered the NFT gaming arena by releasing Non-Fungible Tokens as additions to their products. Even non-gaming organizations, like the NFL, are exploring the use of NFTs to create collectible cards featuring images of famous sports athletes.
6. Digital Art
Digital art was one of the first NFT use cases to gain widespread recognition. Artists can now create digital masterpieces and mint Non-Fungible Tokens from them, allowing people to buy NFTs and create their own art collections, invest in young artists, and potentially make money trading.
NFTs provide amazing opportunities for creative expression and push humanity toward new methods of artistic innovation. Some of the most famous NFT artists include Beeple with his digital collage “Everydays: The First 5000 Days,” Pak with the work “Merge,” and Tyler Hobbs with “Fidenza” and “Incomplete Control.”
Many real-world celebrities, like Madonna, have also shown their support for NFT art by lending their names and images to various NFT projects. Experiments with computer-generated art have also resulted in successful NFT projects, like CryptoPunks.
7. Artificial intelligence
Artificial intelligence (AI) is a permanent fixture in modern society, and it continues to proliferate across various industries. AI-generated art is a particularly controversial topic among online communities. This AI boom is reminiscent of the NFT boom of 2021, if not even bigger.
NFTs can be used to create and sell art generated by AI algorithms, which allows artists to monetize their AI models while providing collectors with one-of-a-kind digital art. In the gaming industry, NFTs can represent in-game objects such as guns, armor, and characters. These objects can be purchased, sold, and traded on blockchain markets, providing game developers with an additional source of revenue.
8. Web3 identification
NFTs (non-fungible tokens) are a prime example of how blockchain technology and Web3 can empower individuals with complete control over their online identity and ownership of digital content.
One example of the use of NFTs for identity is AdLunam, which is the world’s first Engage-to-Earn Proof-of-Attention IDO platform. AdLunam is disrupting the Attention Economy by incorporating Proof of Attention and connecting it with an NFT (Non-fungible tokens) investor profile, ensuring a win-win situation for both tokens and investors.
Through its NFT integration, AdLunam offers investors exclusive airdrops, allocation, and community rewards for participating on their IDO platform. This allows token creators to gain the necessary attention required in the early stages of token circulation.
9. Decentralized Finance
Digital asset owners can use their NFTs as collateral to secure loans on websites such as NFTfi, which facilitate connections between NFT owners and investors seeking to provide funding. The parties involved can complete the loan through smart contracts without the need for intermediaries once the terms have been met.
In addition, NFT owners can sell smaller portions or fractionalize their ownership on platforms like Fractional and NFTx, which allow them to earn interest on their assets.
10. Finance & Trading
The NFT space also presents opportunities for finance. Through tokenization, payments can be facilitated and a comprehensive financial platform can be established. To initiate a financial transaction, NFT tickets, QR codes, and other mechanisms can be utilized as guarantees.
Although not among the most prevalent applications, businesses and individuals can reap the rewards of financial platforms powered by blockchain technology. Notable examples include Binance, Coinbase, and similar exchanges.
11. Provide Proof of Authenticity
Every company faces the challenge of ensuring the authenticity of their products. With millions of counterfeit businesses producing copies each year, it’s crucial to find a solution to this problem.
Blockchain technology can be utilized by various industries to create authenticity certificates for their products. Non-fungible tokens (NFTs) can be used to develop a new way for companies to attach a QR code to their physical products. Customers can scan the code, view the certificate, and confirm its authenticity.
This technology is not only groundbreaking but also brings additional benefits to industries such as medicine, which requires strict regulations.
By checking the QR code, signing the smart contract, and verifying the authenticity of the product, customers can prevent buying counterfeit products. This approach can be a game-changer in fighting the sale of fake merchandise.
12. Medical Records & Identification
NFT projects offer more than just assets in real estate or gaming. They present an opportunity to leverage the technology for digital identity and recognition.
Non-fungible tokens can store unique information on the blockchain, such as degrees, certificates, academic credentials, medical records, and course qualifications, which can be accessed on the internet. NFTs can be used to verify important information, such as previous medical tests, with QR codes or URLs that doctors can view.
If accepted by people and governments, NFTs could be applied to official documents like driver’s licenses or IDs, as has been seen with the Wallet on iPhone that allows the use of credit cards without physical possession. NFTs can protect information against potential threats through smart contracts that verify and track wallets checking tokens, preventing replication.
13. Real Estate
NFTs and real estate share surprising similarities that can revolutionize the real estate industry. NFTs can serve as a certificate of ownership to transfer land deeds and track changes in a digital real estate index.
This marriage of blockchain technology and real estate can transform the market by simplifying transactions and reducing costs. With NFTs, property owners can list their properties on marketplaces with just a few clicks, eliminating the need for brokers.
Prospective buyers can view all the necessary information about a building on their smartphones in seconds. Decentralized home rental services can also automate payments, making the entire process more efficient. NFTs offer a powerful solution to revolutionize the real estate industry.
NFTs are revolutionizing the mortgage industry by allowing borrowers and lenders to store important mortgage data, such as borrower information, lien data, and transaction history, on the blockchain using unique digital assets that cannot be copied or exchanged, making them impervious to fraud.
With NFT-based mortgages, the financing process is significantly streamlined as the need for extensive paperwork is reduced. Moreover, since NFTs are secure and error-free, they are considered to be much safer than traditional paper-based mortgages.
However, the lack of regulation around NFTs is a major concern for many purchasers and investors. As NFTs become increasingly popular, governments worldwide may need to regulate and establish legal frameworks to ensure their safe and secure use.
15. Luxury Goods
Speaking of luxury goods, exclusivity is the key factor that distinguishes them from ordinary products. Limited edition and unique design should always accompany luxury items like designer clothes, jewelry, and watches, and NFTs can provide the support for this exclusivity.
Once again, the technology of NFTs guarantees authenticity. Digital certificates provide the same information as traditional NFTs, such as the history of previous owners and transaction values. Moreover, digital versions of luxury goods can be as stunning as their physical counterparts. Imagine having a 3D model of your very own exclusive supercar!
16. Luxury & Fashion Brands
The fashion industry is undergoing a transformation with the emergence of NFT technology. Rather than relying on traditional purchasing methods, NFTs offer a new way to create unique outfits and luxury brands while providing unique experiences in the Metaverse. This can be a powerful tool to increase brand awareness and sales, especially among Gen Z clients.
Companies like Rebecca Minkoff and Nike have already embraced NFTs to engage with customers. Rebecca Minkoff uses avatars in the Metaverse to raise funds and develop engagement, while Nike has created “Nikeland” on the Roblox platform to showcase its products and accessories.
By leveraging NFTs, fashion companies can offer a new level of authenticity and exclusivity to their customers. With the ability to create unique digital assets that can’t be replicated, brands can establish a stronger connection with their audience and stand out in an increasingly competitive market.
17. Digital Patents Rise
NFTs are not only valuable for digital artwork or collectibles, but they can also be used to secure patents and other forms of intellectual property. By creating an NFT, a creator can establish a certificate of ownership that can protect against fraud and potential legal disputes.
With NFTs, creators can easily demonstrate their ownership of patents and other forms of intellectual property. Interested parties can verify the authenticity of the NFT and its associated information, providing a transparent and secure way to protect creative assets.
NFTs have potential uses in academia beyond what most people may realize. Educators like Beau Brannan suggest that NFTs could be utilized to award scores to students, which would contain information about the courses they completed and the students themselves. These scores could also be displayed online for potential employers to view.
Although these NFTs would not have any monetary value and would not be transferable, they could serve to spark students’ interests and create a permanent record that can be accessed by anyone at any time. This is the true strength of NFTs—their immutability.
Another interesting application of NFTs in academia is with textbooks. By putting all textbooks on the blockchain, piracy may be eliminated overnight. This would also enable academics to collect royalties on every book sold indefinitely.
The fact that a significant portion of NFTs are simply marketing gimmicks is widely known. However, what is often overlooked is that marketing can be both the means and the end of NFTs.
Brands across the globe are discovering that NFTs need not only be created by anonymous online identities. They can also be produced by brands themselves and can help promote their products and services.
NFTs are effective marketing tools as they offer a personalized experience to customers, enhance brand loyalty and identity, and serve as an attraction strategy. These tokens are particularly useful for brands targeting younger audiences. By releasing an NFT collection, a brand is not only presenting artwork but also generating interest among younger demographics.
20. Supply Chain
Since the arrival of 2020, the global supply chain has been facing tremendous strain. Ports are struggling to handle the influx of ships, and companies are struggling to manage international purchases.
However, the food industry is facing even more significant issues. Companies in this sector require assistance in verifying the origin of their food products, as well as the chemicals used in the production process and the expiry dates. All of these issues can be addressed through the use of blockchain technology.
NFTs can be used to create digital stamps that can be attached to food items, serving as a means of identification when customers or customs officials inspect the product. Additionally, NFTs can be used to track the shipping times and estimated arrival times of food products.
Overall, the application of NFTs in the supply chain has enormous potential to reduce the cost of importing and exporting, streamline manufacturing processes, and enhance communication with end customers. By leveraging unique items that have negligible costs, the use of NFTs can revolutionize the industry in ways that extend beyond mainstream monetization.
NFT Use Cases – Summary
The potential of blockchain and NFTs is limitless. It is crucial that we learn to use this technology effectively, not just for NFT sales and profit, but in various industries where transparency is crucial. Some examples include:
- Preventing voter fraud in presidential elections
- Preventing fixed games in the sports industry
- Generating streaming income from sales
- Providing gamers with new experiences
- Purchasing certificates of ownership for physical land
- NFTs offer control over assets and promote fairness through their transparency and uniqueness.
Developing new software and technologies that incorporate blockchain and NFTs is crucial for creating opportunities for all.