What are NFTs Used for? 8 Use Cases for NFTs

Dec 14, 2021 | Blockchain, Digital Finance, NFTs

We’re used to hearing people talk about NFTs as a bold new trend. But have you heard about the different uses or examples of NFTs out there? 

Let’s take a deep dive into what NFTs really are, review some NFT use cases, and think about how they’ll be used more in the future. 

Attributes of NFTs 

Okay, so what are the features of NFTs? Firstly, they are digital assets. From music and art to smart cities and security, from gaming to public administration, NFTs are useful to verify ownership of data. 

Beyond that, NFTs are making the world of art and collectibles more accessible. By allowing buyers and sellers to have a convenient symbol of ownership, the NFT is revolutionizing how we treat art markets and valuable items around the world. 

NFT Use Cases 

NFTs can be misunderstood — clearing up misconceptions can be a useful part of building public awareness and revealing why NFTs are full of opportunity.  

These use cases will provide some of the answers on modern NFT use.  

Digital Art and Collectibles 

While it’s obvious that artworks and collectibles have value, it’s not always easy to attribute the right value to them or understand what makes them valuable. 

NFTs support that value by verifying the owner. That’s why so many celebrities, artists, and even crafters and artisans are using NFTs to authenticate their creations and attribute collectible value to them. 

Sports NFTs 

Sports NFTs are a way of leveraging a sports star’s celebrity and athletic history in a digital context. Fans connect with their favorite athletes digitally – and athletes don’t have to be on the street doing signings to build their brands.  

Now you can buy an autographed NFT from a world heavyweight, pro-quarterback, or anybody else who embraces this new trend. 

Gaming and VR 

Gaming and VR are driving some of the most exciting technology trends. So you put these together with NFTs, and you have a powerhouse of digital innovation and disruption. What’s that? Do you wonder if this is a fad? When you get behind the screen or under the hood and look at how VR is exploding, you’ll see how NFTs can become your ticket to the new metaverse. 

The reason has to do with the virtual worlds themselves. Digital objects, characters, and artifacts are routinely created in these worlds to give them detail and dimension. For example, some games have collections of meteors, either real or imagined, as discrete virtual objects. Some have ‘homes’ and pieces of virtual real estate. Some have character ‘skins’.  

An NFT can be tied to any of these objects that ONLY exist virtually. As a unique digital marker, the NFT is made to show ownership in a digital way. It is convenient for labeling and proving ownership.  

Real Estate 

Is it possible to create NFTs for real estate? 

Well, think about this – a Qatar sovereign wealth fund reportedly owns part of the Empire State Building in New York City. 

But how do you own part of a building? 

New products called Real Estate Investment Trusts (REITs) allow investors to buy into a building fund that may have specific landmark buildings or other properties included in its overall umbrella. So, if you can own a tiny part of a building, you can profit from gains in a particular way, and the NFT can be your resource in showing your stake.  

Like all the above uses, you can prove ownership with an NFT. The NFT in your digital wallet is your certificate of ownership of whatever you’ve bought, even if it has 111 floors. 

Music 

Savvy artists like Snoop Dogg are putting out NFTs. They understand that in an age where people don’t buy new CDs and albums anymore, NFTs may become the way we purchase music from now on. 

Supply Chains and Logistics 

This is an interesting one for NFTs. 

If you think about how products get from one place to another, you’ll realize that everything needs to go through a multistep process. One good example is getting milk to the grocery store – the store needs to verify that perishable items are kept cold throughout their journey and to their destination. Otherwise, the store can end up with spoiled milk, which might not get noticed when the truck first reaches the warehouse. 

NFTs can help solve cold chain logistics issues and other types of supply chain documentation problems. Unlike paperwork to be signed, an NFT is digital proof of receipt and/or quality standard. It can’t be faked or counterfeited, or changed without a permanent record, because of how the blockchain works. That’s another major use case for this type of blockchain-based technology. 

ID and Documentation 

Papers, please. 

That phrase may eventually be entirely obsolete as customs officials, law enforcement people, and others in positions of authority simply check an individual’s NFT instead of looking at things like passports and driver’s licenses. 

An NFT could tell a bartender that you’re 21, prove where you went to school, or that you have a permit to operate a vehicle. Everything we do with little bits of paper and cards can more easily be put into an NFT, and the NFT is much harder to counterfeit — that’s a win-win for both parties and why so many people are looking at NFTs for all these different use cases. 

Domain Names 

NFTs are an excellent way to verify the ownership of a site on the internet. In some ways, an NFT is very similar to a URL, so it makes sense to use NFTs to designate domain names on an Internet that’s constantly expanding. 

Future Uses 

People are coming up with new uses for non-fungible tokens every day. We recently heard the announcement that a Mexican office plans to use NFTs to verify the results of covid tests. 

“Tokenization and NFTs are a kind of broad-spectrum Swiss Army knife when it comes to digital verification and transparency.” 

Roy Bernhard, President & Chief Product Officer at Fabriik,

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