Introduction to NFTs
NFT Use Cases
Non-fungible tokens (NFTs) have been making headlines as they’ve gone from being little-known tokens to being the newest crypto fad. NFTs aren’t just a fad though; they have the potential to solve a key problem in the arts and entertainment industries, among others.
What Problems Do NFT Solve?
Digital artists and creators face a significant issue in the definition of their work. Digital art is eternally replicable by its very nature. NFTs provide an excellent solution. That’s because blockchains function as public ledgers and offer the first genuine opportunity for verifiable and unique digital ownership.
Collectors can now purchase an NFT, which functions as a tamper-proof digital receipt that allows the artist to keep a portion of the proceeds from each sale. As a result, NFTs can assist both established and fledgling digital artists by creating new revenue streams.
What Can You Do With An NFT?
Digital artists and collectors can use NFTs in a variety of ways. In simple terms, buying an NFT is one of the best ways to show support to an artist, as most NFT sales translate into more money for the creator. The collectors can also get a share of the copyright on an NFT art, depending on the terms of the agreement. However, NFTs can also hold a lot more than one asset. Additional hidden content, such as high-resolution files, behind-the-scenes flicks, or secret messages from the artist, might be included for the benefit of collectors.
On top of that, the usage of NFTs in gaming allows the user to own all game treasures and items, as well as have complete control over them in a decentralized system. This isn’t normal in traditional gaming systems, which only allow gamers to access the game assets regardless of how much you paid for them or their inherent value.
Because of NFTs’ unique features in gaming, they deliver a major opportunity in-game by selling collectibles, whereby particularly rare items that others want and need might skyrocket in value, giving the user that owns the NFT a chance to get a strong return on investment (ROI). There are also some NFT projects that provide some solutions to social matters, whether it be charity or community-focused.
Other Use Cases
The representation of a physical good by a unique digital token acting as a receipt or voucher is another one of the many potential use cases possible through NFTs. Influencers of all sizes can use non-fungible tokens to promote and sell things without directly dealing with brands. This benefits all parties involved, as it will allow brands to promote their items in front of more eyes, influencers to earn easy sales commissions, and buyers and users to discover new online products.
Additionally, by using NFTs as tickets, users will be able to easily keep, own, validate, and even trade their tickets in a digital format, making them more accessible and usable. It will be simple to identify exactly what the ticket offers, all while stomping out the chance of counterfeiting because each ticket is provably authentic. People will no longer be afraid of buying bogus tickets from scalpers because it will be simple to figure out who generated the ticket, who currently owns it, how it was disseminated, what it involves, and so on.
Brands and businesses realize that by using NFTs, they can create digital collectibles that strengthen the relationship between them and their customers, providing them a little bit more to keep their brand awareness and loyalty growing. Following mainstream influencers and artists’ successful acceptance, large-scale organizations and brands swiftly followed suit in order to be among the first to adopt this new asset class. A great example of this is Starbucks, which has teamed up with Polygon to launch its NFT loyalty program dubbed “Starbucks Odyssey” which will onboard its customers to web3.
NFTs have an undeniable impact on artists, brands, game developers, gamers, and the crypto industry as a whole. Users can now own and control all of the assets they’ve accumulated during their gaming careers for the first time in digital history. For many people, this is a game-changing breakthrough that allows them to earn money in previously unthinkable ways.