Hello readers👋
You might have heard so much of NFTs now but do you believe that they are just some jpegs. If you believe that, you are wrong. Let me make you clear what outstanding potential does NFTs have.
If you don't know what NFTs are, make sure to check out this blog first.
Let's get started.
Some of the use cases of NFTs are listed below
🎵Music
Generally, people associate NFTs with digital pictures sold as blockchain-based assets but there are many other categories available. One of them is the 'Music NFTs'.
You may think it like music NFTs is a blockchain alternative to buy music tracks as on iTunes. But when you buy music on iTunes, you only have the right to listen to that music. There is no asset ownership on iTunes (only a license to listen to what you have paid for). In contrast, music NFTs let anyone listen to tracks but also confer ownership over that file through an NFT.
You might think why buy the music you can already listen to? The answer to this question is the same as buying jpegs as NFTs which you could right-click and save. Markets, or people, find value in ownership of provably unique and original assets.
For some, that value could come from a closer relationship with the artist they like. For others, it could be financial exposure to an artist who they believe will thrive. If the artist becomes successful, the value of the music NFT they’ve invested in could rise.
Music NFTs are like that you can sell your musical artwork in the form of NFT to anyone. The owner has the right to determine how the composition is used.
Music NFTs may also have a wide variety of use cases like it can be used to grant access to discounted concert tickets, special areas at concerts, or meetups with the artist.
Catalog is a famous NFT marketplace particularly built for music NFTs.
🎮Gaming
NFTs have the best use case in the gaming world. NFTs can be integrated into the gaming world by allowing NFT cross-platform playability. NFTs, give game developers another way to expand their brand and create another revenue stream, while gamers are given more incentive to keep playing a game if they already own characters or items within it.
Unique characters or avatars or items in the game can be bought and sold using NFTs. Example - purchasing weapons for the game via an NFT marketplace to play in the game.
NFTs also allow for an easier time trading in games, which can also increase the value since NFT items in games can have a varying degree of rarity.
Axie Infinity is a famous NFT based game.
A game like FIFA already offers limited-time skins, as does Fortnite. Both games create a scarcity but the developer is in control. With NFTs, players can control the sale and resale of items. If you came to FIFA Ultimate Team late, missed the season’s first kits, you will be able to buy them from other players.
🏡Real estate
Just Imagine knowing everything about the property you are buying in just a few taps on your phone. Know when the property was built, who owned it first, what modifications were done, and everything to the point of you purchasing it. This is what would happen if real estate would be represented as NFTs.
It would help in providing proof of ownership, the history of the owners, etc. It would also be possible to create decentralized home rental services.
🔍Authenticity of products
NFTs can be used to determine whether the product we purchase is authentic or not. Since the blockchain can permanently store information about the product, checking for rarity and authenticity will soon be a thing on physical products too.
NFTs can be used to store information about the manufacturing process, ensuring that everything is fair trade.
🔎Fake products Identification
Imagine just scanning a QR code of a nutritional supplement you bought online and seeing its entire journey – from manufacturing to shipment. In which case, products that erroneously claim they were made and sourced in a specific country will eventually be exposed, since the track record is transparent.
Here, NFTs can be used to identify fake products like food supplements and medicine. NFTs can track and trace food products and can capture their entire journey from manufacturing to shipment. People can then easily verify the product.
🏈Sport
Highlights of unforgettable sports moments can be sold as NFTs and these NFTs would be invaluable to fans. For example - moments like a winning six in cricket, a winning goal, etc could be sold as NFTs.
🎨Artwork Tracking
Nowadays, many works of art are easily copied and it is difficult to trace the original owner. With the use of NFTs, we can check the history of all owners and authenticity. This also ensures NFT owners that their property is indeed authentic.
🩺Medical records and identity verification
Individuals' medical records can be stored on NFT ledgers. NFT Birth certificates can be issued to newborns by healthcare providers which can be used to create a lifelong identity on the blockchain.
NFT ledgers can be used to store sensitive medical data and can be used to verify patient identities and medical procedures without compromising patient confidentiality.
🤖Intellectual property and patents
NFT tokens can be used to prove ownership of any piece of content. Ownership of the intellectual property can be distinguished, especially with the timestamps, the entire history of the intellectual property. The NFT chain would be immutable, which means that the NFT owner could prove they were the original creator of a piece of work at any point in time.
NFTs can be used to protect and certify ownership of innovation or invention.
📃Academic credentials
NFTs can provide proof of attendance, degree earned, and other information. NFTs can create immutable records for courses taken by issuing tokens for each course completed along with verifying any degrees earned through smart contract verification systems.
NFTs can be used as a record of academic achievement and NFT education tokens can be transferred to individuals, giving them proof that the person holding it earned such an NFT.
🎟️Ticketing
Paper tickets for transportation, parking, etc can be replaced by NFTs which can be used for validation purposes.
🚚Supply chain
NFTs can also give companies the ability to track their products from manufacturing through shipping and delivery. This gives customers insight into what they are spending money on as well as maintaining transparency within a company’s supply chain.
🗳️Voting
In many countries, voters are required to bring a photo ID and proof of residence with them when going to polling booths to vote. However, many are being disenfranchised as they do not have copies of their IDs or any form of documentation that will prove where they live, or if they are even registered to vote.
Imagine if voting is integrated with NFTs.
NFTs can provide a digital identity for people that proves who they are and where they reside in the country. This will also help eliminate cheating and voter fraud as NFTs will serve as an official record of those who voted and their votes.
👽Metaverse
Avatars and land in the metaverse are represented as NFTs. NFTs can help shape this virtual reality future where people spend most of their time interacting with digital avatars instead of their physical counterparts.
Buying and doing things in the metaverse, all can be represented as NFTs.
Summary
NFT use cases are still in their starting stage, but it is clear that they will not only be used in games but also used by regular people in their daily lives. It not only will be easy to use but also will be more transparent as transactions will be recorded on the blockchain.
Let's see how this technology proceeds and grows in the future.
Conclusion
This is the end of the blog. I think you might have understood what are the different use cases of NFTs and why people believe it's the future.
I hope you find it helpful. Let me know your thoughts in the comment below.
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