Generally built on/around Ethereum, Non Fungible Tokens (NFTs) have been gaining popularity lately. Thanks to the community’s relentless building endeavor, these individually unique digitally tokenized assets have been finding new usecases, besides the commonly known art and gaming ones. Here are the top five NFT use cases, though this is by no means an exhaustive list, and the possibilities are endless!
5. Event Tickets
Currently, forgery and mass ticket hoarding are a big problem. With NFTs, the tickets can be independently verified and authenticated on the blockchain, with no practical approach of cheating the system, owing to the immutability of the records kept on the distributed ledger. Plus, to prevent mass hoarding, they can be bound to a specific blockchain based identity to enforce selling limits.
4. A Person’s Time Or Skills
Another use case for NFTs is the monetization of a person’s time or skills by simply allowing them to issue tokenized ownership proofs, which can then be redeemed for specific tasks or for their time. For instance, users can issue NFTs for free lancing, podcasts, events, videos, newsletters, creating art, charity and more.
3. Gaming Items And Credentials
One major NFT use case is for the purposes of blockchain based record keeping of a player’s stats and achievement in games, and to keep a list of items heor she acquired in the game. This would ensure a seamless and incorruptible transfer of records, plus the verification of ownership of gaming items and ascertaining their genuineness. Also, gaming items can be designed to work across games or have certain redeemable value!
2. Virtual Assets
NFTs can be used for virtual assets such as domains (Ethereum Name Service and Unstoppable tying wallet addresses to human readable names). Also digital real estate is getting popular in games like Decentraland, which allow participants to buy and develop their own space in a virtual world.
1. Arts And Collectibles
It brings us to the obvious and the most basic use case of the NFTs. Arts and collectibles! Just like physical arts and collectibles industry, NFTs can prove authenticity and ownership pretty easily for such kind of things. Artists can enforce copyrights and negate the risk of their work getting pirated or misappropriated. NFTs are also becoming famous for cards and collectibles, with many companies issuing limited edition merchandise on the blockchain. CryptoKitties and Sorare come to the mind!
What Makes NFTs Special?
What makes NFTs attractive for so many applications is their uniqueness, rarity, provability of ownership, transferability and their indivisible nature. They have metadata embedded which can be used to prove authenticity, the numbers of NFTs in existence can be limited by coding, ownership is provable on the blockchain, it’s transferable at a click of a button, and no NFT can be exchanged on a one to one ratio with another ensuring wholesomeness!
What Are NFTs?
Non Fungible Tokens (NFTs) are unique tokenized digital assets, which aren’t exchangeable 1:1 with each other. NFTs can be art, collectible cards, a person’s time or services, game items, domains etc. In this article however, we will focus mostly on the art side of things. NFTs can be art, collectible cards, a person’s time or provided services, game items, domains etc and in short, all tokenizable real virtual “assets”.
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