Even if Web3 is new to you, you’ve probably heard of NFTs or non-fungible tokens which are one of the two main token types used in the blockchain industry, along with fungible tokens.
NFTs, which have remained popular since the day they entered our lives, are now affecting a wider range of industries. It is safe to say that NFT technology has now advanced beyond its original use. In fact, owning an NFT might prove to be more advantageous than simply being a noteworthy investment that you can brag about. You might be wondering at this point how they manage it.
Let’s look at the NFT utility as well as the 6 most popular NFT use cases in different industries.
What is NFT?
A digital asset known as an NFT is a representation of a real-world item, such as artwork, music, in-game items, collectibles, and even real estate. They are frequently purchased and sold online in exchange for cryptocurrencies, and they are typically encoded using the same software as many other cryptos.
NFTs have been around since 2014, but they are only now becoming well-known because they are a more and more common way to buy and sell digital art. NFTs typically have unique identification codes and are one of a kind or at least one of a very small run.
Arry Yu, managing director of Yellow Umbrella Ventures and chair of the Cascadia Blockchain Council for the Washington Technology Industry Association, asserts that NFTs essentially produce digital scarcity.
This contrasts sharply with the majority of digital works, which almost always have an endless supply. Theoretically, decreasing an asset’s supply should raise its value if it is in demand.
Due to the fact that an NFT permits the buyer to keep ownership of the original item. It also has integrated authentication that acts as ownership proof. For collectors, the “digital bragging rights” are almost more valuable than the item itself.
6 Most Popular NFT Use Cases Across Industries
NFTs are probably most commonly associated with digital art. This association is not unfounded because traditional media has given this use case a lot of coverage. Additionally, using NFTs for digital art representation has long been a well-established field.
NFTs are perfect for creating one-of-a-kind art pieces with distinctive properties because they are non-fungible. As a result, it gives artists a way to reassure buyers that a piece of art is unique. This is made possible by the interchangeability of these tokens and the immutable records kept on blockchains.
As a result, NFTs have fundamentally changed the field of digital art by enabling individual artists to profit from their creations in a way that has never been possible. Additionally, it is possible to include clauses in the code that guarantee artists receive a cut of every sale of the NFT, giving digital artists fresh, creative ideas for continuing to monetize their work.
Furthermore, platforms like OpenSea have contributed to the increased interest in NFTs. An NFT marketplace called OpenSea has grown significantly over the past 12 months. The website offers artists a user-friendly platform, making it easier for them to sell and buy NFTs. Use Moralis to quickly learn how to create your own NFT marketplace if you’re interested in OpenSea!
NFT art has, up until this point, primarily concentrated on the inherent value of digital assets, but that may change in 2022. Developers will likely be working to advance this technology and come up with fresh, original ideas in the upcoming year. Here’s an illustration of how NFTs might be used to represent traditional art. Additionally, NFTs will make it possible to demonstrate ownership of assets, including tangible objects.
Clothing & Wearables
The second group of hypothetical use cases for NFTs in 2022 that we’re going to consider includes clothing and wearables. The past year has seen a lot of attention focused on this industry, which is already quite popular. Additionally, this is a sector monitor since 2022 will undoubtedly see a growth in digital wearables.
The metaverse and video games are frequently linked with NFT wearables. In this sense, NFTs can stand in for objects or items of clothing that avatars can use in video games or other virtual environments. There are other ways to use NFT in the clothing industry, so this isn’t the whole story.
Another illustration is social media-related virtual wearables. Influencers using virtual goods to be more sustainable have generated some buzz. They use NFT wearables instead of purchasing brand-new, physical clothing for a single photo shoot as a more environmentally friendly choice. This sector is intriguing and has the potential to grow.
Last but not least, NFT wearables can have an impact on traditional brands as well as those in a digital environment. GAP is a great example; if you have a specific kind of NFT, you can claim items in-store. This relates to the idea of exclusive memberships where you, as a holder of an NFT, can get access to exclusive goods from a specific brand.
The gaming industry and NFTs go hand in hand. By enabling NFT cross-platform playability, NFTs can be integrated into the gaming industry. Game players are more motivated to continue playing a game if they already own characters or items within it thanks to NFTs, which give game developers another way to expand their brand and create a new revenue stream.
Since NFT items in games can vary in degree of rarity, NFTs also make trading in games easier, which can also increase the value. Due to the absence of a middleman and the instantaneous nature of blockchain transactions, NFT owners won’t need to worry about scams. This creates more opportunities than ever before, including the ability to buy weapons or other equipment that has already been tried out by actual users.
Games like Axie Infinity, CryptoKitties, and other blockchain games are already fully utilizing this use case.
Real estate and NFTs go hand in hand. With the use of timestamped NFTs, land deeds can be transferred, ownership can be established, and property value changes can be tracked over time.
One of the sectors that is most NFT-ready is the real estate market. While protecting sensitive information like credit card numbers, NFTs can be used in the real estate industry to streamline and speed up transactions, enable smart contracts for properties (allowing automatic payments), or even grow decentralized house rental services.
Imagine being able to learn everything there is to know about the property you are buying with just a few phone taps. Know when the building was constructed, who owned it previously, what alterations were made, and everything else relevant to your purchase.
Another fascinating sector that could benefit from NFTs is the music industry. As you may already be aware, this sector can be very lucrative for larger conglomerates and record labels. However, they frequently achieve their profitability at the expense of the specific artist and through unfavorable penny-per-stream business models.
Music NFTs may be a more effective and advantageous way for individual artists to monetize their work. As a result, the artists can actually claim ownership of their creations, including any trademarks or other intellectual property rights, and this information can be kept in a token’s metadata.
Fans could organize and directly support their favorite musicians with the help of music NFTs. This implies that NFTs have the potential to do away with pointless middlemen, which would be advantageous for artists.
NFT projects are receiving a lot of funding, and this is just one of many compelling use cases for NFTs in 2022. As a result, it can be very exciting to watch how this industry grows and how NFTs might end up completely changing the music business.
Digital identities are the final use case for 2022 NFT that we’ll examine in more detail. NFTs have mainly been employed up to this point to record and assert ownership of digital assets like videos, works of art, tweets, etc. Earlier, we also mentioned briefly NFTs representing physical assets, which will probably become more common in the future. Can we, however, create digital identities using the same ideas and tools?
Although it may seem far-fetched, NFTs and blockchain technology could make this possible. We can use the same ideas and apply them to digital identities, just like it’s possible to store digital concert tickets on the blockchain. For the creation of virtual identities, NFTs and blockchain technology are the best choice due to their properties.
Actually, NFTs may allow for self-sovereign identities (SSIDs). These are private, controlled digital identities. People won’t be reliant on centralized institutions like governments as a result. This will be a fascinating industry, making it one of the NFT use cases to pay close attention to in 2022.
Furthermore, maintaining a secure identity is crucial, and even in well-known physical and digital environments, it is getting harder to do so. The metaverse has now entered the picture, making it even more difficult to protect one’s identity. This is where NFTs come into play, as they are a quick and secure way to create identities in the metaverse.
Thus, as the world becomes more digital and the metaverse develops, NFTs may come to play a crucial role.
Although NFT use cases are still in their early stages, it is clear that they will benefit not only games but also everyday people going about their daily lives. This will not only make many services easier to use, but it will also make more transactions transparent, especially when it comes to who owns tangible things like real estate, artwork, ideas, concepts, and the like.
So, if you are looking for a business idea to start from, you can think of NFTs. In this case, you can get helps from Satom Venture Studio. At Satom with startup ideas, capital, human resources, and other support when running your business.