When a piece of digital artwork at Christie’s auction house sold for a record $69mn, NFTs, or non-fungible tokens, caught everyone’s attention.
Thanks to a new breed of cryptocurrency users, NFTs, over the last few years, have overwhelmed the digital art and collectible space. Nevertheless, with a rise in these tokens’ popularity, their use has also become broadened.
Not only can NFTs be used for digital artwork or collectibles, but also as an illustration of ownership of any exclusive asset that can’t be interchanged, such as property or a fine piece of artwork.
The origin of these tokens is often traced back to the famed Colored Coins in 2012. While remarkably not as sophisticated and intricate, this was one of the first uses of the blockchain for digital assets. Five years on, in 2017, Cryptokitties, these NFT’s that required feeding and looking after along with breeding to create a totally unique digital kitten were perhaps the most famous use cases of the non-fungible tokens. The Ethereum-based craze soon picked up pace, racking up nearly $20 million in purchasing, feeding, and fostering costs.
“The NFT concept has evolved all the way from cyber characters and feeding digital cats to being used in moving property rights and private equity transactions in both residential and commercial real estate deals” stated by Mr. Tim, an NFT expert from UAE.
Other Use Cases for NFT Technology
NFTs are available in several forms and are employed in numerous ways in addition to just digital art, all focusing on fungibility.
Having this type of individuality on digital platforms is something that is presently piquing the interest of many businesspeople and enterprise-level business managers across multiple industries.
Here are other real-world examples of how these tokens are pervading the business world:
The gaming world has begun to experiment with NFT solutions, with top game development companies investing in the technology. Sorare, Decentraland, and Gods Unchained and My Crypto Heroes are some of the leading NFT-based games currently on the market.
Given the huge gaming landscape and the burgeoning use cases for NFTs, it would be no surprise if something like Cryptolife becomes the next big trend in gaming.
Consumers can digitally validate the proprietorship information of certain fashion fixtures and items, which pointedly decreases the risks of securing forged products.
Fashion designers can use non-fungible tokens as a way to defend the validity of their products, even if they’re designing and selling clothes, shoes, fixtures, etc., as digital attires that go beyond what can exist in the real world.
Events And Ticketing
When it comes to issues with forgery, the ticketing industry for sporting and concert events is one of the worst affected. Three years ago, it was reported that about 12% of all concert-goers bought forged tickets. To deal with this, ticketing companies are turning to non-fungible tokens to ensure that the tickets on the market are authentic.
The best thing about leveraging NFT technology for tickets? Not only can ticketers set the sale price but also the resale price to help eliminate the other grasping threat to the ticketing industry: scalping.
Licenses and Certifications
Non-fungible tokens can be used for authenticating licenses and certifications. Universities and employers need copies of references, student records, course completion documents and more before they offer the position to someone in a firm or an academic institution.
Creating non-fungible tokens can eliminate the hassle of verification and record-verification, which saves administrators time and energy by accessing certain licenses and certifications.