NFTs are going to be a major component in everyone’s lives. We are going to unpack a complete list of the best NFT use cases and utilities. They have so much use beyond art or just right-clicking and saving the image.
Over the years, there has been a lot of hype around crypto and blockchain assets. As the digital economy keeps growing and expanding, people need to prepare for it.
If you’ve been paying attention, you must’ve heard about tokens, coins, crypto, and other assets. Non-fungible tokens, or NFTs, are no longer a fluke but are becoming a mainstream trend with growing acceptance and appeal. This article gives an insight into the best use cases and how they are taking over the digital world and metaverse.
What is NFT Utility?
NFTs are more than just works of art. Collecting and possessing them must have a purpose. Holders could acquire access to an exclusive membership, an event, entry to a game, or gain exclusive characters in various games by owning it.
NFT staking is also a new form of utility. Staking to a protocol in order to generate a yield is a growing form of NFT utility. Decentralized Finance (Defi) meets NFTs since it provides passive yield-generating utility to NFTs.
Redeemability is another type of NFT utility that is gaining popularity. The bearer of a redeemable NFT can trade it for either a physical or a digital product. Aside from scarcity, NFTs may be used to acquire early and restricted access to upcoming products and offer dividends to the holders who have crypto tokens in their wallets.
Top NFT Use Cases
The application and use of NFTs have spread over the years. Some people think they can only be used for digital artwork and art collectibles but is so much more than that.
Therefore, let’s look into various NFT use cases, as they will help you understand why they are as popular as they are.
NFTs are very similar to web pages and websites. Non Fungible Tokens have the ability to be completely customized and changed over time.
You could drop an NFT collection today and 10 years later still be adding value and customizing that same NFT project.
NFT Use Cases in Finance
Decentralized finance (DeFi) has an important role in NFTs. This is because NFTs have the financial ability to expand and grow the DeFi sector.
1. NFT Staking
NFTs can be staked similarly to any other crypto coin or token. When you stake an NFT, the staking platform calculates its value based on rarity and then calculates an annual percentage yield (APY). The higher the APY, the rarer your NFT is. Their worth is also determined by their ability to create a consistent income stream, such as royalties.
It is crucial to remember, however, that not all NFTs can be staked. As a result, you should double-check the details before purchasing the NFT.
Staking is specific to the specific project, learn more about NFT staking.
2. NFT Breeding
NFT breeding is a process of taking two NFTs and mixing them together to create a brand new unique NFT.
The new NFT that is generated can then be used to resell for a profit or stake to generate a daily yield. The process of breading your NFTs was first popularized by Cyber Kongz.
3. NFTs as Collateral
Different platforms offer different ways of using NFTs as collateral. It is kept as collateral, and users can borrow the platform’s native currency or any other coin that they support, as per the rarity or value of NFT.
4. Digital Assets
By no means are crypto-collectibles and NFT art the only use cases in the DeFi ecosystem; they are merely two of the most well-known. Patents, licenses, entry tickets, and memberships can all be shown using non-fungible, or non-exchangeable, tokens.
NFT Business Use Cases
Many of the NFT use cases in real-world corporations are still in the early stages, ranging from licenses and certifications to real estate to supply chain management and logistics. Web 3 is growing rapidly in the business sector.
5. Identification, Certification, and Documentation
NFTs are unique, and owning one means you are the undisputed owner, and a duplicate of it can’t be found anywhere.
This goes down to personal identity management. Here, unique information about a particular individual can be stored in NFT tokens. In turn, the tokens can be used to identify such people and also document degrees, important certificates or qualifications, records, and much more.
These documents can be given over blockchain and, in the case of displacement, can be traced to the original owner.
The use of NFTs for vaccination passports is a similar application. San Marino has stated that it will use NFT COVID-19 vaccination passports. The tokens will aid in the authentication of papers and the reduction of counterfeits.
6. Domain Name Ownership
Owners of blockchain domains can use private keys to govern their domains. These concerns are mitigated by the fact that blockchain domain names are permanently registered in a public registry and cannot be erased or changed by a third party.
NFTs for blockchain domains allow for quick trade as well as bespoke domain names. Decentralized alternatives to the regular DNS, such as the Ethereum Name Service (ENS) and Unstoppable Domains, give crypto-addresses that are unique.
7. Supply Chain and Logistics
Because each NFT may represent a physical thing (asset), the tokens can be used to represent any type of commodity or service. This might be information about the source, but it could also be information about transportation or a storage site. From the store, the supply chain may be followed in real-time. However, it may also be demonstrated that this product is original.
They are also well suited for tracking perishable items. IBM’s Food Trust and Maersk’s TradeLens systems are two notable instances of NFTs being used in the supply chain.
Blockchain technology is also very useful for logistics because it is clear and immutable. While delivering essential or perishable goods, you must know the details of the goods and how long they can be used.
8. Real Estate
Data recorded on the blockchain in the form of a token may also be utilized for digital real estate mapping. Everything is contractually governed and digitally signed in smart contracts.
The blockchain transaction provides security while also allowing small private investors to have access to real estate. This indicates that the property may be accessed both physically and digitally. Both are viable options that will almost certainly find customers.
Anyone can use NFTs since they are basic and straightforward to use. Virtual reality games may potentially be used to auction off properties. The marketing of highly liquid real estate and land, on the other hand, is perhaps more appealing from an investor’s perspective.
9. Events and Ticketing
Counterfeiting and mass ticket hoarding are currently a major issue. The tickets may be checked and confirmed on the blockchain.
At the same time, the system cannot be fooled or fabricated due to the immutability of the records recorded on the distributed ledger technology. They can also be linked to a specific blockchain-based identity to enforce sales limitations and avoid widespread hoarding.
NFT Community Use Cases
If you need access to a community or a group of people, NFTs enable you to get access to them even without the real NFT.
NFTs are the new “digital flex”. They provide a way for people to show off and prove to people that they have a lot of money. They are also a great way to build a digital identity.
For example, CryptoPunks are one of the most popular NFT projects in the world. One of the owners of a CryptoPunk was offered $9.5 Million for his NFT but he declined it because he had built his entire brand and digital identity around his CryptoPunk.
If he sold it, he would have to restart and grow his digital identity all over again with a new NFT.
NFTs are being used as logos or a picture of your face. Since all NFTs are unique and cannot be duplicated, it makes sense.
NFTs are extremely popular on Twitter and they are very commonly used as profile pictures and used for interacting with other owners of the same project.
But it is now possible
Users will need a wallet to get started, but they can do so now. The Ethereum logo on the photo’s edge informs other users that this profile picture is an NFT-based digital collector’s item.
This informs everyone that this user actually owns this NFT are they did not screenshot it.
Helping integrate NFTs with digital identity.
Decentralized Autonomous Organizations bring a lot to the NFT world, from collective ownership of NFTs to governance and more.
Some DAOs were created to allow a group of individuals to own a high-value NFT collectively without having to pay thousands of dollars. Community governance is another important area where Decentralized Autonomous Organizations may assist NFTs.
DAOs are a fantastic way for NFT project supporters and creators to join together and decide on the project’s future. A number of NFT projects have already set up their own DAOs.
NFT Gaming Use Cases
Over 2 million people engage in an online game every day. Tons of people are starting to dive into blockchain games, and the growing industry of play to earn games
NFTs are reshaping the gaming industry and ushering in a new era of gaming.
12. In Game Items
An in-game item can be an NFT, which can be bought and resold. For example, outfits or skins for an in-game character can be stored and accessed in the form of NFT.
13. Game Rewards
The play-to-earn (P2E) game model evolved from the free-to-play and play-to-play game models, in which players are rewarded for their achievements. These are accessible in the form of non-fungible tokens and can be monetized as such.
Gamers can be rewarded with in-game NFTs that they can resell for a profit
14. Virtual Land
For example, Decentraland is a play-to-earn game in which players may purchase NFTs that specify the ownership of digital real estate land parcels.
Users have total control over the environments and applications they construct with land parcels. At any moment, anybody can purchase, sell, or lease land. Their worth is mainly determined by their proximity to famous locations such as highways or plazas, and pieces of land can also be divided into themed towns.
NFT Metaverse Use Cases
This is going to be a game-changer for the NFT space as the metaverse will be where NFTs can be stored and used. It would be a hub for various NFT projects such as art, digital assets, collectibles, and much more.
15. Fashion and Wearables
NFTs are being created as digital clothes, shoes, and wearables. The clothes that your digital avatar may use in a game or in the metaverse are an NFT and can be bought and sold on secondary markets.
NFT Use Cases Beyond Art
Preventing fraud and plagiarism is especially critical in the media and entertainment sectors, which are still developing markets for NFTs. To prevent files from being duplicated or shared without the owners’ consent, they can be added to the blockchain as an NFT.
More works were inspired by the Ethereum network’s Crypto Punks. The NFT art can be kept on the blockchain and connected to the new owner’s identity.
Computer pictures were the start, but businesses around the world are now aware of the possibilities that digital art presents.
TikTok, the world’s most popular app, is the first to provide NFTs on its platform. Six of the most memorable videos are available as NFTs.
The auction is meant to help the artists supplement their income. TikTok Top Moments can be traded on secondary marketplaces. TikTok, which has about 1 billion users globally, is primarily interested in blockchain technology and its potential applications.
Because a large number of superfans want to personally support their favorite musicians, NFTs can also be used by musicians to earn revenue and thereby compensate for losses caused by the stagnation of physical record sales over the last few decades.
It’s possible to use entire albums, singles, videos, photos, or lyrics. Fans are willing to dig deep into their wallets for something one-of-a-kind, or at the very least extremely restricted. In any event, the cost of musical delicacy is growing, with no sign of slowing down.
Exclusivity is the watchword for NFTs in music. A digital artist may decide to mint a few copies of their latest song or album and put them up for sale. Depending on the popularity of that artist, there will be a rush to get that exclusive piece of work.
Musicians are using their fans to fund the project instead of big record labels. If the artist goes on to be a big success then the fans that hold their NFTs will also benefit.
Paintings may be saved on blockchain as NFTs with evidence of ownership using technology. It can be bought, sold, or resold.
NFT Sport Use Cases
Sports, sports clubs, and their followers have had a largely passive relationship up until now.
However, thanks to NFTs, there is the initial steps toward allowing millions of fans to influence their favorite clubs or esports teams.
Chiliz, for example, is a platform that allows fans to influence specific decisions made by their favorite club. A fan may acquire the tokens solely on Chiliz’s consumer-focused website and use them to participate in surveys and vote on AC Milan and Juventus Turin decision-making events.
19. Patent for Sportswear
Nike patented the CryptoKicks shoe authentication method in 2019, and other sporting goods companies are dabbling with NFTs. When a person buys a pair of shoes, an NFT is created that contains unique information about the item, such as its look, maker, and so on.
Owners of CryptoKicks may then combine one digital shoe with another to generate “shoe progeny” and a new, genuine pair of sneakers.
20. NFTs as Sporting Moments to Remember
In the form of NFTs, digital trading cards are simply one option to monetize recordings featuring iconic events in sports history. The NBA did it this way, auctioning off limited copies of distinct goosebumps moments from American professional basketball.
NFT Health Use Cases
Digital healthcare relies heavily on scientific and medical data
Aimedis, a Dutch firm, created its own NFT platform, where research institutes, pharmaceutical companies, manufacturers, and tech companies supply or collect exact data.
The Aimedis DataXChange platform is the world’s first of its type, allowing for transparent data package exchange. Transactions and pro-rata licensing, which uses fees, and provides revenue for the firm.
21. NFT DNA
Many genetic testing firms have been condemned for their handling of consumer data privacy. According to rumors, the data may have been hacked. The NFTs will be based on the blockchain and will save the digital location of all genetic data on a decentralized server.
22. Patient Data
Patient data is fragile and can create chaos whenever it is lost. This type of problem can be easily dealt with by storing data on the blockchain as an NFT for each user.
However, healthcare clients must take care of customers’ privacy as public blockchains are transparent.
Are You Ready To Start Building Your Own NFT Project?
You must know that web 3 has taken over the world and will continue to expand in the future. At Strategency, we advise your NFT project and help you with your NFT website development. There are many use cases for NFTs, and they will keep expanding as more people join the space.
Do you think NFTs have what it takes to survive the next couple of years?
If you are looking to work with our highly skilled team and NFT experts, contact us today.
Disclaimer: This post is just for informational purposes and does not constitute investment or financial advice. We will not be held liable for any investment decisions you make. Before taking any financial risks, please obtain expert guidance.