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

Generally, when we talk about NFTs, we think of these digital images which can be exchanged for thousands, even millions of dollars for some. We can then think, at first glance, that NFTs are part of a strange and speculative world, which has 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 which represent deeds of ownership with which we can buy real estate, cars or even land, at the end of the world, as proposed to us Satoshi Island. It's not just houses that can be bought with NFTs, but absolutely everything that can be bought in real life.

What you need to understand is that NFTs are in themselves 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 tand others will 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 first marketplace to buy and sell NFTs, the main use of NFTs is pure collection. In the same way that classic art collectors buy works of art for aesthetic (or speculative) reasons, we find the same behavior for 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 very widely used as membership cards of a community with a common project. This is for example the case of 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 very interested in NFTs. They see NFTs as a new source of income. As for streaming giant Netflix, it took a different approach with its NFTs by launching a collection dedicated to the “Stranger Things” series. It is important to know that cinematic NFTs do not need to be commercial or promotional. However, it will take some time for the global film industry to adopt 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 has been particularly difficult for the manufacturing sector. entertainment. Touring became impossible to do and artists increasingly turned to other methods of monetization. Electronic music producers and artists who work with computers all day have begun to explore the world of NFTs and their potential to provide a more direct connection to fans.

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

NFTs in the Fashion Industry

Non Fungible Tokens spare no domain, andfashion industry was very active. Amid the hype of the metaverse over the course of 2022, many luxury fashion brands have launched NFT collections. Some high fashion designer brands are using NFTs to attract the younger generation who are more likely to appreciate digital items. THE Celebrities, stars and clothing brands are using NFTs as a new marketing method to broaden their targets, in fact.

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

Tiffany & Co, for example, launched 250 NFTs in limited edition connected to the collection of Crypto punk, at a price of $5000 per unit. CryptoPunk owners were able to see their pixelated character transform into a real Tiffany necklace.

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

In the streetwear and sportswear space, Adidas, Nike and Puma have all jumped into Web 3. Nike bought the RTFXT company and has released numerous sneaker NFTs, sometimes tied to physical sneakers.

Adidas is also connected to Yuga Labs and is launching digital wearables with the Adidas brand. Puma also bought its Ethereum Name Service (ENS) and has since launched w Puma brand metaverse.

NFTs in the field of Sport

The sports sector was very quickly interested in cryptocurrencies and NFTs. We can cite the company Sorare which is a collectible card game for players of Football represented by NFT cards. So, far from sports bet, the platform sorare allows football fans to collect cards that can increase in value over time, depending on the actual performance of the players.

Web 3 and the video games industry

It is in the field of video games that NFTs have found a first reason and a first usefulness. The fervent defenders of Gaming claim that games with NFT assets are a way for players to monetize their time. In fact, video games that use NFTs are generally referred to as “ play-to-earn » as players can earn money by speculating on NFT items.

This is for example the case of play-to-earn games Of race for example which allows you to own NFTs which represent racehorses.

A console project working with play-to-earn games is currently under development by the company ziliqah.

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.

Let us remember that after the craze of the year 2021, the NFT market is experiencing a decline in popularity from individuals and institutions alike. This is partly explained by the unbridled use of NFTs by many actors who have taken advantage of creating worthless NFTs, and with the sole aim of enriching themselves. Obviously, after the fashion effect, there were 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.

See also:

• What is the applicable taxation for NFTs in 2023?
• The 5 criteria for investing in NFTs
• What is an NFT (non-fungible token) and what is it actually used for?
• The 5 NFT generators to create your collections (simply)
• NFT royalties: Lifetime commissions on the sale of your worksrs
• Ordinals: the controversy over the creation of “NFT” on Bitcoin

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