NFT Use Cases – A Complete NFT Use Case Walkthrough
NFT Use Cases – A Complete NFT Use Case Walkthrough | [UPDATED]
Non-fungible tokens have been a trending topic for some time in the digital community. Business magnets and crypto audiences are invested in getting to know the beneficial factors of non-fungible tokens. NFTs popularity has skyrocketed in the past few years, likely due to the Covid-19 outbreak — we were invested completely into the world of digital media.
NFT is ruling the digital world domain. It’s the new explosive arrival into the digital media world, where musicians, artists, cinema, etc., all varieties of personalities are interested and can benefit from this innovative domain.
Non-fungible tokens have amplified the functioning of business models in terms of profit where NFTs are super flexible. Moreover, they can be applied to any field due to their popularity and flexibility among business domains.
Here’s a quick insight into the introduction of NFT development platforms.
What is an NFT?
Non-fungible tokens, also commonly known as NFTs, are digital assets, and they provide certification for the ownership of the digital asset that the user is purchasing.
These NFTs are built on a blockchain network that secures the transaction details — and to dive into the concept of NFTs, the difference between fungible and non-fungible assets is a must.
Fungible assets can be traded on equal terms, where the value remains the same.
For example, if a person trades a 10 rupee note for a different 10 rupee note from another person, the value of the fiat cash remains the same.
On the other hand, non-fungible assets are unique and non-identical; they cannot be traded on equal terms.
For example, a person owns a sports card of an athlete that was released 20 years ago. However, another person owns a sports card of that same athlete that was released a few months ago — the trade between those cards cannot be initiated as the cards possess non-tangible factors, such as the release year, the rarity of the card, and the sports moment that merged with the card.
This physical concept is converted into a digital form, and it is called Non-fungible tokens.
The Non-fungible token has opened the doors of opportunities for business entities and digital content creators. As a result, digital content has become a great platform for creators to showcase their talent and monetize their digital work.
These non-fungible tokens can be volatile and represent anything that has the ability to be digitized, including fungible and non-fungible assets. These non-fungible tokens are traded in decentralized exchanges and also in their special exchange platform called the NFT marketplace.
The high-quality, beneficial features of the non-fungible tokens have made this platform is flexible and can be implemented into varying domains. As a result, the complete NFT use cases vary drastically around different business fields. The most common NFT use cases are the real-estate domain, music domain, art domain, sports domain, etc.
Common Non-Fungible Token (NFT) Use Cases
NFTs in a Real-Estate Domain
The main primary beneficial factor of NFTs is the integration of blockchain technology.
The process of proving and validating real estate ownership is really frustrating and very tedious in real life. This is because multiple middlemen are involved, such as banks, real estate agents, negotiators, and government officials. In addition, the involvement of middlemen costs is a huge commission taken from the real-estate owner.
With the application of NFTs — the purchasing of real estate and the transfer of ownership can be a direct two-party involvement process, as it should be — and is where the NFT use case is applied.
Since NFTs are built on blockchain technology, the data and ownership of real estate are recorded and stored securely; thus, manipulation and replication of data is impossible.
Most importantly, NFTs exists in a decentralized environment; thus, it eradicates the involvement of intermediaries, removing high commission fees, and making the transaction a direct transfer of ownership between the respective two parties.
NFTs in Digital Art Domain
Piracyhas been a real issue in the domain of digital artworks. Many talented artists post their digital creations on the internet, and they are easily replicated and sold. Even worse, the ownership of the artwork is claimed wrongly and sold by someone else.
To rectify these issues, non-fungible tokens are introduced into the domain of digital artwork.
NFT manages a digital ledger known as a blockchain, where the ownership of the artwork is stored securely.
The digital ledger process eliminates the threat of plagiarism and theft. NFTs distribute the proof of ownership and take action against copyright infringement.
The arrival of NFTs in the artwork domain has been a great motivating factor for digital artists to express their talent and monetize their digital work.
NFTs in Sports Domain
Many sports leagues and companies have partnered with the NFT development sector. They have utilized the salient features of NFTs to their advantage — the creation of the sports NFT marketplace development platform is a good example.
The National Basketball Association (NBA) has developed its own NFT marketplace development platform known as NBA Top Shot. The breathtaking NBA moments are digitized as a digital collectible and sold on this special NFT marketplace.
Creating the NBA Top Shot platform has generated a massive sum of revenue for the NBA league. — and security for the creatives behind the collectibles.
Nike Just Did it
Additionally, top shoe companies like Nike also have adopted the concept of NFTs, by introducing CryptoKicks. The NFT method allows shoe enthusiasts to purchase the physical shoe and also gain access to the NFT form of the shoes. Armed with the NFT — the user can edit and customize the shoe and produce a real-life shoe product.
NFTs in Online Gaming Domain
The online gaming realm is one of the most rapidly growing industries in the world. The concept of NFTs is not new for the gaming domain, as they already have experience in trading and purchasing digital assets in the game. However, those assets cannot be monetized.
The non-fungible tokens allow the gamers to monetize their in-built purchased digital collectibles by playing NFT based games.
In the NFT based online gaming platforms, the in-build purchases are represented in the form of NFTs. Therefore, by purchasing these digital assets, they can be traded in any NFT marketplace development platform.
NFTs help gamers are more motivated while playing NFT games by producing rare digital collectibles. NFTs are scarce in nature, and this idea of providing rare gaming NFTs makes the gamers more motivated and gravitate towards the field of NFT.
NFTs in Memes
The growth of NFTs and social media has risen parallel to each other in the past few years. The social media domain gave birth to an entertaining concept called memes.
Memes are one of the most interesting NFT use cases. The memes posted on social media sites can be converted into NFTs, by minting them in any NFT marketplace development platform.
NFT minted memes have been a great opportunity for meme creators to monetize their entertainment work. Since the memes are minted into NFTs, they cannot be replicated or manipulated, as they are developed on the blockchain. It verifies the ownership of the digital collectible for the purchasers.
NFTs in Certificates and License
NFTs in Certificates and Licensing are useful for verifying authenticity and ownership of the certificates during a job intake or university admission process. However, the respective committee can only check and authenticate the certificates submitted by employees and students to a certain limit.
To eliminate these issues, and provide a complete authentication of the certificates, NFTs are implemented in this domain. This NFT use case consumes very little time compared to the traditional way of verifying certificates and authenticating them. The same NFT application is also applied for license verification and registration process.
NFTs in Ticketing Industry
The ticketing industry has always faced huge obstacles. The involvement of scalpers has been a massive problem for years. The scalpers buy online tickets of the respective show in bulk and sell them to the audience at a very high rate. The mere scalping act questions the authenticity of the ticket.
The only way the audience attendee can verify the ticket’s authenticity is by reaching the concert or live event directly.
The introduction of non-fungible tokens into this industry has benefited tremendously for the ticket sellers. In addition, NFTs help the audience to verify the authenticity of their bought tickets and eliminate the inconvenience caused by scalpers.
NFTs in Fashion Industry
Counterfeiting of assets is a huge hindrance in the fashion industry. There are numerous sales of counterfeit products that have been sold to customers. Now, thanks to NFTs — this obstacle is eliminated.
NFTs verify the ownership of the product bought by the customer. The NFT verification provides the details about the place of manufacture, and the details of the previously owned owner of the product. The NFT application also increases the welfare of employees in protecting customers.
NFTs in Marketplace Development
The rapid development of NFTs has paved the way for developing their own decentralized exchange, called the NFT marketplace.
The NFT marketplace is a special marketplace where the trading of digital assets like NFTs takes place.
The massive popularity gained by non-fungible tokens has encouraged business entities to create their own NFT marketplace development platform. The new methods of gaining profit have proven to be very effective for business entities in the digital world.
Conclusion
The complete NFT use cases are very marveling because, in all industries, the main hurdle is the falsification of authenticity.
It’s clear that the NFTs have been a game-changer for many industries. NFTs, help business entities to rise up in their respective domains and claim the monetary benefits of what is theirs in the first place — its personal property. Without the use of Non-fungibles — a huge cost has been paid by businesses. By implementing non-fungible tokens, everything has changed, where the verification process is done effectively quickly and enabling industries to boost their profit.
In the near future, NFTs are expected to take over almost every industry. This system is still growing and very flexible; thus, it can adapt to any type of business and provide assistance. The enormous popularity of NFTs has paved the way for bridging the gap between digital world business and physical world business.
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