Crypto

NFT has more potential use cases than we can imagine today

aug 9, 2022 | min read

Real world items such as artwork and real estate can be represented using NFT. These real tangible goods can be "tokenized" to trade them more efficiently and also reduce the risk of fraud.

The use of NFTs (non-fungible tokens) is much higher than we currently know. And their use extends beyond artworks. With NFTs, you can tokenize anything you can think of: from standard items such as paintings, land, or houses, to virtual offerings such as digital works, courses, or event tickets.

In 2021 alone, NFTs' trading volume exceeded USD 25 billion. The future of NFTs offers endless opportunities, limited only by our imagination.

NFT usage knows no limits

Art

The most common application of NFTs is programmable art, which uniquely combines creativity and technology. Various limited editions of artworks are currently in circulation. Some collectors were willing to pay tens of millions of dollars for some items.

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TIP: The 10 most expensive NFTs: items sold at insane prices

Fashion

By promising benefits to all supply chain partners, blockchain has effortlessly integrated into the fashion world. Consumers can easily check ownership information about their purchases and accessories online, eliminating the risk of counterfeiting. For example, users can easily scan the QR code found on price tags of clothing and accessories in the form of NFTs.

Licenses and certifications

NFT use cases can also provide major benefits in validating licenses and certifications. Successful students are usually issued with certificates of completion in digital or physical format, as with any other degree or license. But before a corporation or institute offers someone a position, universities and employers want a copy of the course completion document as a reference.

Administrators could save a lot of time by using NFTs to access such licenses. Certificates and licenses based on NFTs relieve administrators of the need to check and verify records. So this approach makes it easier to track proof of course completion or licensing.

Sport

Some of the most serious problems impacting the sports sector are counterfeit tickets and goods. Blockchain is an ideal solution to solve such difficulties with several obstacles. The consistency of blockchain technology helps prevent counterfeiting of collectibles and tickets.

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Gaming

NFTs have also left their mark on the cryptocurrency gaming industry and are already having an impact on the overall gaming scene. CryptoKitties was the first project to combine gaming features with NFT in 2017, releasing digital cats on blockchain and giving users the opportunity to interact and trade with them. The model was so successful that the Ethereum network was briefly bottlenecked due to transaction volume.

Since then, gaming has become a key use case for NFTs, which is not very demanding given the nature of product sales, such as skins and other features known from games that have already dominated the traditional market.

Real Estate

A new branch of tokenized ownership is investing in real estate through NFTs. Compared to hitherto used options, blockchain enables faster and more secure real estate transactions. And tokenization enables the division of real estate ownership so the new technology opens the door to smaller investors. Through tokenization, you can buy a share in a house, apartment, or any other property. An example is the AMANTIUS project - tokenized apartments in Dubai.

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NFTs make sense where it has value to own an original rather than a copy

Non-fungible tokens appeal to collectors, investors and traders. They are a digital version of a product that gives the owner a certified version of this (not only art) work. NFTs make sense especially when owning an actual offer - an official, unique version of an item - is much more valuable than owning a copy.

Martin Kuchár

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