Non-Fungible Tokens (NFTs) are vibrant and thrilling parts of the crypto world that potentially carry countless opportunities. In this article, we’ll go through the most popular NFT utilities to date, and explore why and how they contribute to the pieces’ valuation with specific examples.
Let’s have a quick word about the basics of NFTs before heading to the use cases. Non-Fungible Tokens (NFTs) are the opposites of fungible tokens, such as ETH, USDT, and the sort, as they can’t be copied, duplicated, or tampered with by unauthorized parties in any way. This means that they provide exclusive and verifiable ownership to their holders, which is also thanks to the fact that they are registered on publicly viewable blockchains.
Contrary to the popular misconception that NFTs can only be used for art trading and collecting, they do feature many other equally novel utilities that we’ll talk about in a second.
Even though art trading and collecting is by far the most well-known use case for NFTs, we must mention a few thoughts about it. What essentially makes NFTs perfect for the cause is their one-off nature and unmatched security. One-off means that every single NFT is represented as a fully bespoke entry on the blockchain it’s registered on, and for that reason, which address owns the piece is unquestionably retrievable. This also allows the holder to transfer his unique token to any other address, resulting in potentially instantaneous and global trading of NFTs. With all that considered, there’s no doubt that NFTs’ art collecting utility is more than justified.
Now we move on to other aspects that most of the crypto world is likely unaware of, but we begin with the one that is the least novel of all other utilities: exclusive membership with NFTs. As mentioned before, NFT ownership is extremely easy to verify, and leaves no questions about whom the true holder is. Collections that offer exclusive membership to holders make use of exactly that, and tie certain benefits to holding their NFTs. The exact perks vary greatly, but common ones include live or digital networking events, meetups, and even full-blown festivals in some cases.
Now we’re coming to the interesting part and a use case that not many are aware of, namely Play-to-Earn (P2E) gaming with NFTs. Simply put, P2E gaming refers to any type of online entertainment that rewards crypto tokens for users’ engagement and advancement. These tokens can be fungible, and also non-fungible (NFTs), depending on the specific game. Non-fungible tokens are not only rewarded, but also utilized by players to actually play, as most characters, gaming accessories, and any in-game possession are often registered as NFTs. How do gamers earn? Let’s imagine you’ve played a character that is also an NFT and you managed to level it up because of your skill. Now, because of leveling up, your NFT is worth more on the market. The value added is derived from your time spent, dedication, and every resource that went into playing.
It’s not only gaming characters that can be owned as NFTs; virtual land in metaverses can be registered as NFTs, too. Many popular metaverses, such as Decentraland, or The Sandbox, offer the option for users to buy properties and own them as NFTs. This way, they not only have the estates in the respective metaverse, but also outside it, which means owners can trade their assets more easily than ever.
Non-Fungible Tokens (NFTs) are exciting and diverse elements of the crypto world, and they are much more than art or collectibles. NFTs have a wide variety of use cases that open possibilities never seen before, and find solutions to combining ownership with utility thanks to their innovative and unprecedented features.
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