Non-fungible tokens (NFTs) are non-transferable units of data that exist on a blockchain and can be purchased or traded digitally. These digital files can be photographs, videos, and audio files.
In simple terms, users can exchange fungible assets on equal terms with the same value. Non-fungible assets, on the other hand, are unique and cannot be traded equally, though they are similar in many aspects.
For example, a person may own a 20-year-old sports card of a famous athlete. However, another person holds the same card (for the same athlete) released a few months ago. It is impossible to trade those cards equally because of the non-tangible variables such as the year of release and the type of sporting event. This distinction is because, even though both cards are similar and serve the same purpose, they are represented for different dates and times.
Unlike fungible tokens, non-fungible tokens are physical concepts converted into a digital form. This is how NFTs are different from any real-world assets and their values.
According to Fortunly statistics:
- The most valuable NFT is worth around $91.8 million.
- @pleasrdao purchased an Iconic “Doge” meme on NFT at $4 million
- 23% of millennials collect NFTs in the United States.
- In 2021, NFT art sales exceeded 1.5 million in a single month.
Non-fungible tokens, or NFTs, have risen in popularity in the cryptocurrency and blockchain industries. Yet, despite its spellbinding applications and indispensable functionalities, many investors and enthusiasts are still in doubt.
Are NFTs a fascinating concept that will last the wear and tear, or are they just another craze that will disappear as mainstream popularity grows?
These concerns mark it an essential factor to consider the most popular use cases of NFTs, along with real-time examples, for understanding and trusting the prospect of NFTs.
Top 10 Potential Use Cases Of Non-Fungible Tokens
NFTs have proven to be a considerable improvement over legacy systems in various applications. While many people assume that NFTs are solely for digital art, the universe of NFTs is far more significant than we think.
There’s no doubt that the recent profitable sales of digital artworks as NFTs have sparked growing interest in NFTs.
The following article will help you find the top use cases for NFTs with prominent real-world examples:
1. NFT In Real Estate
In the traditional concept, confirming and validating real estate ownership is frustrating and time-consuming. This hustle is due to the involvement of several intermediaries, including real estate agents, banks, and government representatives. Moreover, the presence of intermediaries imposes a hefty commission on the real-estate owner.
However, with the implementation of NFTS, the acquisition of real estate and the transfer of ownership has become a two-party involvement procedure, which is an ideal and hustle-free process.
NFTs operate decentralized, eliminating the need for intermediaries and excessive commissions and enabling direct ownership transfers between the parties.
2. NFT In Sports
The NFT development sector has cooperated with several sports leagues and businesses. They\’ve taken advantage of the critical aspects of NFTs, as seen by the launch of the sports NFT marketplace development platform.
The National Basketball Association (NBA) has created NBA Top Shot, its own NFT marketplace development platform. The unforgettable NBA moments are converted into a digital collectible and are made available for purchase on this exclusive NFT marketplace.
The NBA Top Shot platform has brought in a significant amount of money for the league and security for the collectibles’ creators.
3. NFT In Gaming
The world of online gaming is one of the fastest expanding industries. The concept of NFTs in the gaming industry is not new, as players have already dealt with them to purchase digital items in games. Those assets, however, cannot be sold.
Gamers can use non-fungible tokens to monetize their in-built digital collectibles by playing NFT-based games.
The in-build purchases appear in the form of NFTs in the NFT-based online gaming platforms. Therefore, these digital assets are purchased and sold on any NFT marketplace development platform.
By manufacturing exceptional digital collectibles, NFTs assist gamers to become more motivated while playing NFT games. NFTs are rare in nature, so the thought of giving rare gaming NFTs motivates gamers to pursue careers in NFTs.
4. NFT In Certificates & License
Employing NFTs in Certificates and Licensing is essential for confirming the ownership and authenticity of certificates throughout the hiring or admissions process. However, in the current scenario, the corresponding committee can only review and approve the certifications given by employees and students to a certain extent.
NFTs can contribute to this domain by addressing authenticity concerns and providing complete certificate authority. Compared to the old process of validating and authenticating certificates, this NFT use case takes relatively little time. The same NFT application can assist in both license verification and registration.
5. NFT In Memes
The expansion of NFTs and social media has been in perfect sync in recent years. “Memes” are a fun concept that originated on social media. And one of the more intriguing NFT use cases is memes. Memes are quickly convertible into NFTs on any NFT marketplace development platform.
Meme creators have had a fantastic opportunity to monetize their entertainment production. Since memes are created with NFTs and on the blockchain environment, they cannot be copied or modified. This feature ensures that the customers are the rightful proprietors of the digital item.
6. NFT In Fashion
Asset counterfeiting is a significant obstacle in the fashion business. Customers have been sold several counterfeit products every single day. This stumbling block is no longer a concern in the NFT environment.
NFT confirms ownership of a purchased product. NFT verification provides information on the manufacturing location and the previous owner of the product. The NFT application also complies with consumer protection laws, enhancing employee well-being.
7. NFT In Marketplace Development
The fast growth of NFTs has allowed them to create their decentralized exchange through the NFT marketplace.
The NFT marketplace is a unique platform where users can trade digital assets such as NFTs.
The immense popularity of NFTs has prompted businesses to construct their own NFT marketplace development platform. Corporate companies have found that new profit methods are pretty effective in the digital environment.
8. NFT In Property and Patents
While patents fall under intellectual property, they easily qualify as an investment product for a company. The deployment of NFTs for patents could assist patent tokenization.
Consequently, patent owners will have an easier time finding profitable ways to commercialize their patents.
Non-fungible tokens for patents offer open, highly secure, and widely accessible trade systems, which is interesting. Organizations could have several assets related to intellectual property rights and patents.
The sharing of Intellectual property rights among several buyers is simplified by fractional ownership of an item. As a result, businesses will be able to use fractional ownership to generate additional revenue sources.
9. NFT In Music And Art
To create a collectible piece of music, musicians can link their audio tracks to NFTs in the same way they can attach images or videos. It’s similar to releasing the first digital album. In most cases, musicians struggle to receive a fair share of royalties.
It may not always be possible for their music to be adopted by more extensive streaming services. As a result, this approach addresses all of these concerns, and artists will no longer need to rely on third-party services.
In the realm of digital artworks, piracy has been a severe concern. Many talented artists share their digital works on the internet, where they can be easily copied and sold. Unfortunately, the artwork’s ownership is incorrectly claimed and sold to someone else.
But in the case of NFTs, the ownership of the artwork is recorded securely on a digital ledger known as a blockchain.
Due to the digital ledger system, plagiarism and theft are no longer a concern. NFTs provide proof of ownership and prosecute infringements.
The introduction of NFTs into the artwork sphere has motivated digital artists to express their creativity and sell their work.
10. NFT In Goods & Supply-Chain
The commodities and supply chain business can benefit from blockchain as trustworthy technical assistance. Many well-known companies, including Amazon, have already begun to use blockchain to track their products\’ path through the supply chain from the point of origin to the client.
Blockchain\’s transparency and immutability make it a suitable solution for the logistics industry. This feature of blockchain guarantees the trustworthiness and authenticity of supply chain data. Customers are becoming more conscious of perishable goods storage sites and durations, such as food and other goods.
Real-Time Examples Of NFT Use Cases
In the metaverse, the NFT examples would send you straight to Facebook. The most popular social media platform intends to transform into a virtual environment that will allow users to immerse themselves in the experience.
Facebook might use the logical expansion of virtual and augmented reality over its current technology and infrastructure for the metaverse. Also, Facebook has plans to allow users to utilize digital avatars to mingle, engage, and develop the virtual environment around them.
2. Intellectual Property NFTs
The administration of intellectual property rights is one of the most common uses of NFTs. The collaboration between IPwe and IBM for changing corporate patents is the most recent example of the usage of NFT for intellectual property.
The collaboration intends to create an ecosystem for patent tokenization, allowing for faster patent commercialization, licensing, and sales.
3. Coca Cola
Coca-Cola is likely one of the most well-known brands that recently entered the NFT market. The firm joined the metaverse by issuing NFTs of collectible Coca-Cola bottles from the past.
Surprisingly, the company raised about $575,000 for the artifacts through an online auction. Coca-Cola is one of the non-fungible token use examples demonstrating how NFTs may inspire community interaction and brand promotion while also providing a new revenue stream.
The NFTs have unquestionably revolutionized the concept in a variety of industries. NFTs assist businesses in rising to the top of their respective sectors and claiming the monetary advantages of what is rightfully theirs – their personal property.
Businesses have borne a significant expense without the usage of non-fungibles.
But the implementation of non-fungible tokens quickened the process of transaction and audit, resulting in a boost in profits.
However, like any other newly introduced technology, enterprises should be ready to address the complications and drawbacks while trying to implement NFTs for any of their business transformations. Nevertheless, the good news is, at Parangat, our specialized staff of highly-skilled blockchain professionals will identify your visions and impediments in the process and will provide you with the most feasible solution for implementing NFT technology in your business operations alongside providing you with the full-fledged support from project ideation to deployment.
With roll up sleeves, dive in and get the job done approach, it was in the year 2010 when Sahil started Parangat Technologies. Emphasizing a healthy work culture and technology-driven company, he has successfully created a workplace where people love to work and live. He is a software engineer and a passionate blockchain enthusiast.