Non-fungible Tokens (NFTs): Current and Future Use Cases
Updated: Jan 22
Blockchain technology has received a lot of interest in recent years, owing mostly to the spectacular growth in the value of cryptocurrencies like bitcoin and Ethereum. However, in recent months, NFT has emerged as the new favorite of the blockchain railroads.
What is meant by NFT?
The term 'non-fungible token' refers to each token having at least one feature (or attribute) such as identification, location, or unique qualities. As a result, these tokens vary significantly from traditional cryptocurrencies. NFTs, in short, serves as a certificate or a proof of authenticity that proves possession of a digital asset. NFTs are a strong technology that allows individuals to generate digital scarcity without the need for a centralized middleman.
NFT's current utility:
The market for NFTs has grown steadily. Here are some examples of current NFT applications.
1. Digital Art: NFTs:
NFTs are utilized to create distinctive digital art objects. A rising number of NFT markets that offer all types of creative products are beneficial for verifying evidence of ownership. An artist may create an NFT portraying a work of art, proving to the buyer that it is the only one. The immutability of blockchain allows for such digital file rarity and uniqueness.
2. Ticketing NFTs:
They're also helpful in the ticketing sector. Blockchain NFTs may represent tickets to a sporting event or maybe a concert. This provides original access for all attendees and prevents ticket duplication.
3. Gaming NFTs:
NFTs are utilized to generate non-duplicable in-game goods, giving players a new sense of ownership. Playing a game where players acquire virtual non-fungible in-game currency may be an example. After achieving the most desirable objectives, individuals might consider selling coins they earned for a profit.
4. Real Estate NFT:
Physical lands or properties are replicated as an NFT on a blockchain. So a digital token representing land includes features like location, price, and dimensions. The blockchain makes it hard for bad actors to interfere with landowners as well as other tangible assets.
NFT's future utility:
2021 was NFTs' year. Non-fungible tokens are employed in gaming, finance, art, and medicine, and have transacted billions. NFTs are widely used and most purchases will incorporate NFTs in ten years. Others say smart contracts will replace them. Let's take a look at some future NFT use predictions.
● NFT for Fashion:
Some high-end brands, including Dolce & Gabbana, are already in the NFT. The company sold the first NFT collection for $5.7 million in Ether on September 30th, 2021. A few days later, the Collezione Genesi rose to $6.1 million as the cryptocurrency market rose 10%. The nine-piece set featured physical wearables & their digital NFT counterparts. So NFTs could be the future of monetizing fashion and wearables. They lowered physical inventory expenditures. Collectors may now buy many collections instead of simply one.
● NFT for Virtual Land:
In virtual worlds, property sales are attracting millions of dollars in real-life money. Buyers may create whatever they desire in Decentraland, The Sandbox, and Cryptovoxels. In 2022 and beyond, the digital property market will become widespread. And now we can store and measure wealth using virtual land. Virtual plots, like real estate, may value tremendously over time. Moreover, digital real estate is immune to the present real estate market's instability.
● NFT for Logistics:
Logistics Distributed ledger technology is still powering NFTs, but other technologies are in the works. NFTs could provide unique products and use blockchain immutability to truly ease logistics. Consider perishable commodities. Users may see the cargo's details, including how long it will be until it goes bad.
● NFT for Music:
Popular musicians like Shawn Mendes, Grimes, & Snoop Dogg have all experimented with NFTs to find new ways to monetize and engage their fans. It requires some interruption, which NFT provides. NFT platforms allow artists to communicate with their followers in more engaging ways. The American rock band Kings of Leon has released an album in NFT and performed it in space.
● NFT for Health :
The usage of NFTs in healthcare is significant. For example, NFTs can protect the privacy of medical information. NFTs may also help monitor pharmaceuticals in the supply chain.
The demand for NFTs frequently outpaces the capacity of NFT firms' websites. Customers want fair, orderly, & problem-free product launches, thus NFT enterprises are looking for innovative solutions to manage traffic spikes and designing unique ways for future use cases of NFT.