Non-fungible tokens (NFTs) are a new technology that has already seen a wide range of applications outside of the traditional NFT application – which is currently mostly used to trade artwork and gaming characters. Physical objects, digital content, and intellectual property can all be represented with NFTs. If you’re familiar with the NFT world, you’re probably aware of a frequent misperception about non-fungible tokens. Many people believe that NFTs are primarily marketed as artwork and can be “right-clicked saved” because some of the most renowned NFTs sold so far have been art. This is not the case; in reality, NFTs have a wide range of applications beyond art.
Here is what some people usually think NFTs are:
- Saving an image with “save image as”
- CryptoPunks has been saved on my device for free
- And investors are paying for it….
Anyone who has no knowledge about NFTs thinks this way, but that’s not the case. NFT tokens are unique digital assets with certificates of authenticity used for digital identity, gaming, virtual real estate, digital art, licensing royalties, among other use cases. Let’s take a look at the 5 use cases of NFT below.
Here is a list of 5 use cases of NFT:
1. Gaming and sport NFT
This allows in-game elements or items to be tokenized and exchanged with other items. Examples of gaming NFTs are The Sandbox, Axie Infinity, and Decentraland. While the Axie Infinity NFTis the most popular at the moment, The Sandbox and Decentraland also come in handy in terms of market value. This also offers tokenized sports game tickets issued on the blockchain network and also helps to prevent counterfeit merchandise. For both gamers and NFT collectors, the concept of “play to earn” is extremely important. Axie Infinity, for example, allows players to earn money by investing and spending time in the game.
2. Real estate NFT
One of the most NFT-ready industries is the real estate business. NFTs are used in real estate to simplify and speed up transactions, enable smart contracts for properties (enabling automatic payments), and even build decentralized house rental services, all while safeguarding sensitive data such as credit card numbers.
3. Collectible NFT
Having an NFT can have a lot of advantages. One of these advantages is the fact that they are collectibles. Because of their ease of verification and authentication, NFTs are frequently connected with collectors. Collectors can exchange their treasures on one of the many NFT marketplaces, and this can be done in a frictionless and stress-free way.
4. Media and entertainment
You can use an audio file to create an NFT in the same way that you can attach an image or video to make a collectible piece of music. Consider it a digital “first edition” of a song. Adding music to an NFT is comparable to adding art to an NFT. Combining music with NFTs is a wonderful use case, but it may struggle to gain traction without the help of record labels.
5. Art
The recent announcement of digital artist Beeple selling an NFT of his artwork at Christie’s auction for a whopping $69 million sent shockwaves through the blockchain community. The most frequent non-fungible token use case is programmable art, which uniquely combines creativity and technology. Various limited edition artwork pieces are now in circulation.
