Crypto
Mar 27, 2023 12:39 PM EDT
NFTs continue to draw attention to their emerging use cases and potential for substantial returns. As the space matures, more and more investors are jumping on board to take advantage of the new opportunities.
And the world of NFTs expands far beyond art and collectibles. A new era of tokenized digital assets is being created using the blockchain. Here are seven unique NFT use cases that the interested investor should know.
NFTs are unique in that they allow artists to monetize their work without going through traditional channels like galleries or studios. They also allow collectors to own a piece of artwork without having to physically possess it. This makes them ideal for digital images like jpegs, GIFs, videos, or 3D models.
Some hot NFT projects include Pudgy Penguins, Heavy Metal, and Opeopen Edition. NFTs enable a wide variety of artists from established to emerging to monetize their art in a number of different ways.
NFTs offer more use cases than simply "looking at them." The growing market of collectible NFTs allows users to buy, sell, and trade virtual items such as cards, avatars, and other digital assets. Platforms like CryptoKitties and Axie Infinity have become immensely popular for their ability to create entire economies of unique digital collectibles.
Other popular collections include CryptoPunks by Larva Labs (now owned by Yuga Labs), one of the first NFT projects to launch in 2017. CryptoPunks consists of 10,000 pixelated characters, each with unique attributes and features. These characters can be bought and sold on platforms, and owners can track the value in real-time to watch their investments grow.
NFTs are also being used for other purposes outside of art, such as ticketing & proof of attendance, tracking donations, supply chain management, fashion & wearables, gaming & virtual worlds, and social media networks.
One of the unique aspects of NFTs is that it enables fractional ownership of real-world assets. This means that users can now own a share of a physical asset without having to have full possession or responsibility for it.
NFTs provide an immutable digital certificate representing a property ownership stake stored on the blockchain. This technology has opened up a wide range of potential use cases in the real estate industry, such as tokenizing high-end properties and creating utility-based NFTs for solving real-world problems.
One example is the platform RealT, which transforms the high-end property into NFTs. With RealT, buyers can purchase fractional ownership of properties with cryptocurrency, making it easier and faster than traditional methods. The platform allows users to rent or trade their properties on many of the top NFT markets.
A fast-rising project is Propy, which uses NFTs to tokenize commercial and residential real estate investments. Propy's platform allows investors to buy and sell shares in real estate projects from anywhere globally without needing physical paperwork or legal assistance. This opens the doors to a much wider pool of investment opportunities, which could bring great returns for investors.
Decentralized finance (DeFi) has exploded in popularity over the past few years, with more and more users turning to blockchain-based protocols to manage their digital assets. NFTs can revolutionize DeFi by providing a secure way to represent and transfer ownership of digital assets.
By tokenizing these assets, users can easily access liquidity and use DeFi protocols such as lending, borrowing, margin trading, yield aggregation, and more. Additionally, NFTs can create new financial instruments such as derivatives and stablecoins.
In addition to providing liquidity for digital assets, NFTs also offer other benefits for DeFi projects.
For example, they can help reduce counterparty risk by allowing users to trustlessly transfer ownership without relying on third parties. This is especially useful in decentralized exchanges where users must trust that their funds will remain safe from malicious actors.
And with KYC/AML checks when transferring ownership, owner verification can be carried out securely and transparently.
Now Combine this with exciting NFT drops that generate interest. Sounds like the future of finance just got more engaging.
As you can see, blockchain-based NFTs can be used for various applications, from digital art to real estate investment. But one area often overlooked is the potential of NFTs to revolutionize medical records and identity verification.
NFTs can be used to create digital records for patients that are secure, immutable, and easily accessible. This could enable patients to regain control over their health data by allowing them to securely store and share their medical information with healthcare providers. Additionally, NFTs could provide a way for patients to monetize their health data by selling it on the open market.
There are already some examples of NFTs being used in the medical records and identity world. For example, Aimedis has developed a platform that uses NFTs to securely store patient health data on the blockchain. The platform allows patients to access their medical records while providing healthcare providers with secure access to the same information.
Another example is a project called MedRec which uses NFTs as part of its platform for storing patient health records on the blockchain. The project aims to give patients more control over their own medical information while also providing healthcare providers with secure access to this data
Non-fungible tokens can provide additional revenue and cost-saving mechanisms for businesses by tracking products throughout their supply chain journey from production to delivery using smart contracts on the blockchain.
This helps ensure transparency and accountability throughout the process while reducing costs associated with manual labor and paperwork associated with traditional supply chain management systems. And because NFTs are stored on the blockchain, data is secure, immutable, and accessible anywhere.
NFTs can also track product quality throughout the supply chain journey. This can help businesses detect issues early on and take corrective action before they become significant problems.
Imagine, for example, a smart contract that tracks the temperature of a shipment of perishable goods. If it goes outside an acceptable range, the smart contract can automatically alert the responsible party and allow them to take appropriate action before any damage occurs.
We'd be remiss if we didn't mention one of the most popular use cases for NFTs-digital gaming.
Blockchain-based digital games have been around since the early days of CryptoKitties. They continue to grow in popularity as game developers explore more creative possibilities for integrating NFTs into their titles.
NFTs can be used in various ways within digital games, such as providing access to rare characters, items, and levels. They can also store game progress, allowing players to easily switch between devices or platforms without worrying about losing their data.
One of the most popular NFT games is Axie Infinity, a game inspired by Pokémon that allows players to collect, battle, and trade fantasy creatures called Axies.
Another top project is Battle of Guardians, a real-time fantasy multiplayer game with P2E elements.
Non-fungible tokens have been used in various music streaming platforms such as Audius, which allows artists to tokenize their music tracks so that they can be bought and sold directly from fans without any middlemen taking a cut from sales revenues generated from streaming services like Spotify or Apple Music.
Additionally, non-fungible tokens are also being used in video streaming platforms, allowing content creators to monetize their videos by selling access rights directly through non-fungible tokens stored on its blockchain network instead of relying solely on advertising revenues generated from YouTube or other similar services.
If you want to learn more about the various ways NFTs are being used or explore and track NFT collections, then check out NFTGo. As a leading repository for NFTs, the platform allows users to discover new collections, track their favorite NFTs, track whale wallets, create watchlists, and follow creators worldwide. It's a great way to stay up-to-date on the latest developments in this quickly emerging technology.
With an eye on the market, you can also stay informed about the latest NFT trends and find upcoming NFT drops as they become available. Start exploring today!