The use of (NFT) non-fungible tokens lies in certifying a digital asset to be unique and therefore not interchangeable. The significance of NFTs has plummeted due to their uniqueness and scarcity. It’s more and more experimental adoption is nothing but a matter of time. High enthusiasm for NFTs caused a boom in crypto-collectibles and NFT art that are the most prominent use cases in the DeFi system.
Pirating digital artwork was a common art before the arrival of non-fungible tokens. NFTs play a vital role in proving the authenticity of many unique and collectible goods. NFT ecosystem is gradually spreading its wings and it is expected that many projects will engage with this ecosystem.
The value of crypto art takes its root from verifying authenticity and ownership digitally. There has always been a problem with scarcity in digital art which has been solved by non-fungible tokens. Authentication becomes necessary as there are fake art available in the real world.
We can name Pak, an anonymous digital artist, created a series of NFTs giving each piece a different value based on the title. So from here, we can understand how the value to an artwork is generated. Proving ownership of a particular asset plays a significant role here.
To mention the first use case of digital collectibles, we have to say that it has hit the mainstream with the NBA NFT collectible trading cards NBA Top Shot. An NFT can both be a collectible and an art piece. NFTs constitute a significant portion of sales on NFT marketplaces.
Offering unique financial benefits is the characteristics of NFTs. They may have some artwork too and derive value from a song, picture, or collectible item. Their value is originated from their utility. As for example, we can name JustLiquidity and BakerySwap. JustLiquidity offers an NFT staking model and BakerySwap’s NFT food combos provides increased staking rewards for holders.
The practice of micro-transactions and in-game purchases created a multi-billion dollar gaming industry. NFTs and blockchain technology have made space in it. Gamers desire for tradable and purchasable unique items in games. NFT implementation remains away for big budget video games. Tokens which are comprised for video games unite aspects of art, collectivity, and utility for players. There are other projects have already developed blockchain technology into their games. Exchanging of tokens is done in external marketplaces.
Attaching a song to an NFT is an art is possible here. Musicians get a fair share of their royalties. Adopting one of the two possible ways from blockchain-based streaming platforms and blockchain royalty tracking and competing with Amazon music or Youtube for streaming service can lead to a good outcome. Some small projects are working with independent artists. A sufficient adoption can carry popularity for the model. When you are thinking of use cases, what we think is combination of music with NFTs can be an excellent idea for a use case.
Real-world asset NFTs
The process we follow to prove ownership can be digitalized through linking real-world assets, like in the space of real-estate. The model is in its development stage but it lacks regulator’s support. NFT can help prove legitimate ownership when reselling any smaller things like jewelry. Inflicting the NFT into an item with a physical cold storage wallet can also be done if necessary.
As blockchain technology helps prove authenticity and ensures all information about supply chain data, the technology is expected to do better in the logistics industry. For tracking and knowing all about a product, NFT has a high use. Tracking data regarding a product’s origin, journey, warhouse location, and manufacturing process can be possible by NFTs. Implementing NFTs into the supply chain can be done through some ways.