Everyday Use Cases for NFTs
NFTs unlock a new world of potential for people, in ways expanding far beyond the digital art & collectible worlds.
Let’s explore some of the current, and potential future use cases for NFTs.
Digital art: NFTs can be used to represent ownership of digital art and other types of creative content such as music, videos, and images. This allows artists to sell their work directly to collectors without intermediaries and without the risk of unauthorized duplication or theft. Also allows for the artists to receive royalties on the future transactions of their artwork, and gives artists the opportunity to more deeply connect with, incentivize, and reward their collectors.
EX: A potential real-world scenario could be a digital artist creating a unique digital artwork and issuing an NFT that represents ownership of that artwork. Collectors can then purchase the NFT and become the sole owners of the digital artwork. This can allow artists to monetize their digital creations and allow collectors to invest in unique pieces of digital art that can increase in value over time.
Collectibles: NFTs can be used to create unique and limited-edition versions of digital collectibles such as trading cards, gaming items, virtual real estate, fashion wearables, and physical collectibles.
EX: a sports team can issue NFTs that represent ownership of limited-edition trading cards or memorabilia. Collectors can purchase the NFT and become the sole owners of that limited edition item. This can increase the value of the collectible and make it easier for collectors to buy, sell and trade these items independently & securely.
Gaming: NFTs can be used as in-game items and currencies, allowing players to own and trade virtual assets within games.
EX: Non-fungible tokens can be used as in-game items and currencies, allowing players to own and trade virtual assets within games. For example, a game developer can issue NFTs that represent ownership of in-game items such as weapons, armor, or virtual pets. Players can purchase these NFTs and use them within the game or trade them with other players. This can increase the value of the in-game items and create a secondary market for players to freely buy, sell and trade these virtual assets.
Identity Verification: NFTs can be used to represent digital identities, such as verifying social media accounts, licenses, passports, etc.
EX: Non-fungible tokens can be used to represent digital identities, such as verifying a social media account, a driver's license, or a passport. A potential real-world scenario could be a government entity issuing an NFT that represents a digital passport. The NFT could be stored on a blockchain, making it secure and tamper-proof. Individuals could then use this NFT to prove their identity to access certain services, without the need for physical documents & Interactions.
Real Estate: NFTs can be used to represent ownership of physical real estate or other tangible assets, such as artwork or luxury goods.
EX: A real estate developer could issue NFTs that represent ownership of specific properties. Investors can purchase the NFT and become the sole owners of that specific property. This can make it easier for individuals to invest in real estate without the need for large sums of money and can even allow for fractional ownership of properties.
Supply chain management: Non-fungible tokens can be used to track and authenticate goods throughout the supply chain, providing increased transparency and efficiency.
EX: In the food industry, NFTs can be used to track the origin and quality of food products. For example, a farmer can issue an NFT that represents ownership of a specific batch of produce, which can be tracked and verified as it moves throughout the supply chain. This can provide greater transparency for customers and help reduce the risk of fraud, theft, & contamination.
Ticketing: NFTs can be used to represent ownership of event tickets, allowing for easier transfer and resale of tickets while also reducing the risk of counterfeiting, theft, and loss.
EX: A concert promoter could issue event tickets as NFTs. The ticket holder fully owns their Ticket as a digital asset that they can use, lend, or transfer to another person, who could then attend the event once the NFT is in their wallet. This could reduce the risk of counterfeit tickets and provide a secure, traceable way to transfer ownership of tickets, as well as provide additional benefits to ticket holders, and continued supporters.
Charitable donations: NFTs can be used to represent donations to & support charitable organizations. Allowing for transparency and traceability of donations.
EX: A charity working to provide clean water in developing countries could issue NFTs that represent ownership of a specific water well. The NFTs can be sold to individuals or organizations, with the proceeds going towards the construction and maintenance of the water well. This can provide transparency and traceability of donations, allowing individuals to see the impact of their contributions in real-time.
These are just a few examples of how NFTs can be used to impact our everyday lives, and the possibilities are constantly evolving as more people explore the technology and its future potential.