Home Don't know what NFTs are for? Here are some concrete use cases

Don't know what NFTs are for? Here are some concrete use cases

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7 min read

Generally, when we talk about NFTs, we think of those digital images that can be exchanged for thousands, or even millions of dollars in some cases. At first glance, we might think that NFTs belong to a strange and speculative world, one that shares similarities with the world of contemporary art.

However, this is only a visible part of the world of NFTs. Today, NFTs have entered different industries and have different use cases. Indeed, an NFT designates a crypto-asset that is hosted on a blockchain. In fact, it can represent any type of real-life tangible asset. Thus, an NFT can represent an image, a deed of property, a work of art, a diploma, etc.

If you are wondering what the practical use cases of NFTs are, you will find in this article some examples of the concrete uses that can be made with them, in real life.

The use cases for NFTs are unlimited

Contrary to critics who argue that these tokens serve no purpose, NFTs provide a number of use cases that are limited to imagination only. We can represent anything with an NFT and attach it (or not) to a real-world asset.

For example, there are NFTs that represent deeds of ownership, which can be used to buy real estate, cars, or even land, far away, as offered by Satoshi Island . It's not just houses that can be bought with NFTs, but absolutely anything that can be purchased in real life.

What you need to understand is that NFTs are essentially a digital medium of exchange that can represent any tangible asset in real life. In fact, there are no limits to the use cases of NFTs. Some sell bottles of wine with NFTs, while others sell digital art.

If we use this technology, it is rather for the advantages that it provides to holders. Possession is traced and the purchase is recorded on the blockchain. More transparency, absence of falsification, the owner of the NFT controls his possession.

NFTs as a collectible

If we consider OpenSea , the leading marketplace for buying and selling NFTs, the primary use of NFTs is pure collecting. Just as collectors of classical art buy works of art for aesthetic (or speculative) reasons, we find the same behavior among NFT collectors.

A practice that has greatly popularized NFTs of this type is to use them as avatars on social networks. The goal here is to show one's "membership" in a club, in a community that shares the same "values".

Thus, NFTs are also widely used as membership cards for a community with a shared project. This is the case, for example, with the Bored Apes Yacht Club , the most valuable NFT collection to date.

What roles do NFTs play in the film industry?

The NFT market is growing. Building on their original potential, they are revolutionizing the film industry. Indeed, an NFT can be the content itself, a character from the series if it is an animation or if it is a derivative product.

NFTs in the cinema sector can be used in different ways and they can give rights to all kinds of things:

An NFT can provide access to viewing films as is the case with the project Mogul Production, For example ;
They can be used to represent parts of the production of a film;
An NFT in cinema can allow holders to access exclusives such as backstage access, invitations, etc.

This is one of the reasons why Hollywood and the film industry are taking a close interest in NFTs. They see NFTs as a new source of revenue. As for the streaming giant Netflix, it has taken a different approach with its NFTs by launching a collection dedicated to the series "Stranger Things." It's important to know that cinematic NFTs don't have to be commercial or promotional. However, it will take some time for the global film industry to fully embrace NFTs.

How is the music industry using NFTs?

Many in this industry believe that the traditional model of the music industry needs an overhaul. Artists receive a very small percentage of returns from streamed works, for example. As a result, they often feel compelled to tour and perform to maximize their returns.

The pandemic period was particularly difficult for the entertainment industry . Touring became impossible, and artists increasingly turned to alternative monetization methods. Electronic music producers and artists who work all day with computers began exploring the world of NFTs and their potential to provide a more direct connection with fans.

This is, for example, what Snoop Dogg did by creating a collection in his likeness . These NFTs then gave owners the possibility of accessing virtual concerts created on The Sandbox metaverse.

NFTs in the Fashion Industry

Non-Fungible Tokens (NFTs) are impacting every sector, and the fashion industry has been particularly active in this area. Amidst the metaverse's excessive hype throughout 2022, numerous luxury fashion brands launched NFT collections. Some high-fashion designer labels are using NFTs to attract the younger generation, who are more likely to appreciate digital items. Celebrities , stars, and clothing brands are indeed using NFTs as a new marketing method to broaden their target audiences.

Regarding the use cases of NFTs, these range from pure visual art to the sale of digital and virtual clothing. These are then connected to physical assets in the real world. Fashion houses such as Gucci , Prada, Givenchy, Balmain, Dolce & Gabbana, Balenciaga, and Tiffany have all launched their own NFTs.

Tiffany & Co., for example, launched 250 limited-edition NFTs connected to the Crypto Punk collection , priced at $5000 each. CryptoPunk owners could see their pixelated character transformed into a real Tiffany necklace.

Source: The “Nftiff” collection by Tiffany & Co / https://www.lesechos.fr/industrie-services/mode-luxe/tiffany-lance-avec-succes-une-collection-de-bijoux-nft-a- 50000-dollars-lunite-1781023

As for Gucci, the company has purchased land in The Sandbox and has also been active in the Roblox universe. It has also launched its own NFTs and announced in May 2022 that it would accept Bitcoin and ApeCoin as payment methods in some of its stores.

In the streetwear and sportswear sector, Adidas, Nike, and Puma have all ventured into Web 3. Nike acquired the company RTFXT and released numerous NFT sneakers, sometimes linked to physical sneakers.

Adidas is also connected to Yuga Labs and is launching digital wearables under the Adidas brand. Puma also acquired its Ethereum Name Service (ENS) and has since launched Puma-branded metaverse wearables .

NFTs in the field of Sport

The sports industry was quick to embrace cryptocurrencies and NFTs. One example is Sorare, a company that creates collectible card games featuring football players represented by NFT cards. Unlike sports betting , the Sorare platform allows football fans to collect cards that can increase in value over time, based on the players' actual performances.

Web 3 and the video games industry

It was in the realm of video games that NFTs first found resonance and utility. Avid gaming proponents argue that games with NFT assets offer players a way to monetize their time. In fact, video games that utilize NFTs are generally referred to as " play-to-earn " games, as players can earn money by speculating on these items.

This is the case, for example, with the play-to-earn game Derace, which allows you to own NFTs that represent racehorses.

A console project that works with play-to-earn games is currently being developed by the company Ziliqa.

Final words on the use cases of NFTs

Here we were able to see some examples of use cases for NFTs in real life. However, be aware that this is far from being an exhaustive list and that the use cases are even more numerous.

It's worth remembering that after the initial surge in 2021, the NFT market has seen a decline in interest from both individuals and institutions. This is partly due to the uncontrolled use of NFTs by many players who took advantage of the situation to create worthless NFTs solely for profit. Naturally, after the initial hype, there have been many disappointments…

However, it remains true that NFTs have become commonplace and that far from their purely speculative aspects, certain companies use them wisely. It is not impossible to think that NFTs are here to stay and will always be a part of our lives.

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