There has been a surge in the adoption of non-fungible tokens (NFTs), opening the door to a slew of new possibilities. NFTs are expected to become increasingly widely used in a variety of sectors as they continue to develop.
What are NFTs, and how are they used?
Non-fungible tokens (NFTs) have a lot of potential applications in the real world, but first, we need to examine what makes them appealing.
Creating digital scarcity for assets was extremely difficult before non-fungible tokens. Although copyright laws are in effect, digital artwork may be easily pirated or copied by users. In summary, non-fungible tokens help to create scarcity, demand, and the uniqueness of a digital asset.
So, non-fungible tokens are becoming increasingly popular in many applications and scenarios. Here are some of the use cases of NFTs.
NFTs and online gaming
In-game purchases that utilize the NFT capabilities of the blockchain might be the next big thing in gaming. The need for unique in-game purchases in online gaming, with prices determined by rarity, uniqueness, and the value each of these products provides to your entire gaming experience, is driving the emergence of blockchain gaming as a new trend.
These digital commodities provided via in-game purchases have led to a multi-billion dollar business because gamers understand their value. There are several ways to employ non-fungible tokens in gaming.
For gamers, gaming NFTs are a combination of aesthetics, collectibility, and practicality. Many Pokémon-style video games allow players to trade in their pets and other unique goods using non-fungible tokens, such as those seen in Axie Infinity and Battle Pets.
Proving who owns and uses a piece of high-end jewelry
The fashion sector stands to gain greatly from the implementation of NFT on the blockchain. Additionally, consumers will be able to check the authenticity of their goods and accessories online and greatly reduce the danger of fraud.
Users may receive product origin information by scanning a QR code on the price tag of NFT clothing and accessories. In addition, it will allow customers to learn more about the former owners of the property.
To reduce carbon dioxide emissions, the textile sector may use blockchain technology, which will benefit both employees and customers. Fashion sector supply chain applications might benefit from the combination of NFT and blockchain technology.
Tokenization of diplomas and licenses
It is feasible to validate the authenticity of certificates and licenses using NFT, which makes it viable to tokenize them.
In many job applications and university admissions, proof of competence and expertise is required in the form of specified papers and certifications. However, there are only a few methods for reliably verifying the legitimacy of these papers. There is also the risk that someone or a company might fabricate the documents.
Certificates issued using NFT may be accessed and verified by businesses and organizations, providing proof of course completion. Licenses for driving and other modes of transportation are examples of things to which this rule can be applied.
Rewarding sports or concert tickets with tokens or coupons
Non-fungible tokens can help the sports business by making tickets easier to exchange. When it comes to dealing with counterfeit artifacts and tickets, blockchain technology can help. Due to these problems, the sports business, in particular, suffers enormous losses.
NFT use cases, on the other hand, can give sports game tickets issued on the blockchain to prevent illegal access to major sporting events.
Although athletic events are the primary focus of this article, they may also be applied to any music festival. As a result, firms involved in ticket distribution may benefit from a blockchain ticket issued as a non-fungible token.
NFTs in the real estate market
This should be a straightforward two-party transaction, but instead, it involves a slew of middlemen from real estate brokers and banks to notaries and attorneys, all of whom add a layer of complexity and raise the price.
NFTs might drastically speed up the property-buying process by replacing these intermediaries with smart contracts that allow for the secure and straightforward transfer of ownership. The blockchain records and commits all ownership and rights history, making it immediately and easily verifiable.
NFTs might also enable property owners to swiftly unlock value from previously illiquid assets and raise money without having to go to a bank by permitting fractional ownership in properties. This may have far-reaching consequences for the whole financial system, not just the real estate business.
NFTs help bridge the gap between the digital and physical worlds by increasing the level of interoperability between blockchain systems. Some term it a “bubble”, but that’s a misnomer. Many more enterprises and businesses are likely to join the blockchain revolution as the popularity of NFTs grows.
NFTs have a long way to go before they become commonplace, and there is still a lot of space for growth.
Want to Learn More?
Download CleverCookie, the first Canadian finance app that teaches you personal finance in an interactive and fun way.