NFTs, or non-fungible tokens, have become mainstream after metaverse has gained substantial traction. However, the understanding of NFTs with regard to their usage is still blurry to most eyes, including many of their owners.
NFTs are a kind of digital asset that could be an image, an icon, a GIF, a piece of music, or a video. These digital assets can be bought through the blockchain using cryptocurrency.
Anyway, we were talking about how most people are unaware of the different kinds of applications that NFTs have.
In this UNICHED article, we have taken the liberty to point out what the applications of NFTs are and some examples that will help you understand them better.
Let’s get straight into it.
Art Pieces And Collectibles
This application of NFT is known by most individuals who are aware of the decentralized, blockchain-based industry. A lot of goods, sports, and luxury brands are handing out NFTs as collectibles.
Artists all over can create art collections digitally and put them up for sale on various blockchains. More and more artists are going digital to create and market NFTs for a few reasons.
They will always receive a royalty every time the NFT is used commercially.
For every instance, the NFT changes hands, they will get a cut.
They can create art in multiple forms.
Selling to a global audience is easier.
Artists don’t have to worry about theft and illegal reproduction of their work.
Are you an NFT creator or want to create NFTs? Check out these must-have apps for NFT creators.
Authenticating Tokens And Logistics
As NFTs are tokens, they can contain unique keys that can be used to verify the authenticity of goods and products. With counterfeit goods increasing exponentially, NFTs are a unique and modern solution for many businesses.
Interested parties can scan the NFTs to check the authenticity of the products. For safety and secure transportation purposes, NFTs can help with tracking as well.
William Quigley, the co-founder of Tether, a stable cryptocurrency, has predicted that all consumer products will have NFTs. Looking at how easy and simple creating NFTs is, their application in supply chain and logistics is yet to be explored.
Contracts, Documents, And Certificates
As NFTs are unique and every one of them is different from the rest, they can be utilized as contracts, documents, and certificates. Blockchain-based automated transaction systems use smart contracts already. These contracts could be NFTs.
Utilizing NFTs as documents for licensing purposes omits the issue of counterfeits. Secure and encrypted digital signatures can be checked to ensure authenticity. Because of this advantage, transferring documents, and certificates through the blockchain is easier.
Personal documents such as certificates and academic credentials can be easily stored and carried. As they are on the blockchain, it will be impossible to edit them with any intentions. Furthermore, NFT medical records, ought to be secure, personal, and private.
The collective ownership feature of NFTs can allow the owner to selectively provide access to the details enclosed within.
NFTs are collectibles and contain special information. This is being leveraged as valuables in the virtual worlds of video games. The real-world value of NFTs, that constantly keep on increasing works as an incentive.
Monetization of every aspect of video games has led to the flocking of gamers all over to create, trade, and sell NFTs. As NFTs exist on the blockchain, there are no middlemen, no chance of tampering or fraud.
Axle Infinity, Sorare, and Evolution Land are some of the prominent NFT video games.
Real Estate Transactions
Completing a real estate transaction takes months, if not years. Validating property rights, ensuring legal clarity, and negotiating the deal take a whole lot longer. This is one of the reasons people are quite reluctant to own property.
With the help of NFTs, that time frame can be reduced to days, if not hours. NFTs, because they are unique and special, can transfer ownership of real estate very fast. This increases the liquidity of properties making it a worthy investment.
Ticketing and Voting
Another interesting application of NFTs is that they can be used as digital tickets and votes.
Tickets contain personal information that is unique. They could be access keys or complaints but they contain information specific to one case only. This plays right into the alley of NFTs, simply because each NFT is different than others.
Voting is another serious case for which NFTs should be utilized widely. Its encrypted security ensures that it cannot be adulterated. Finally, its existence on the blockchain, an append-only ledger, guarantees its authenticity.
More applications are being discovered
In a few short years, NFTs have proven their utility in many ways. However, engineers and industry leaders are continuously working to find more applications of NFTs.
For instance, interested parties can sell their unique crypto addresses through various mediums using NFTs. Another application includes its usage as a digital proof of ownership. After the metaverse was launched by various platforms, the importance of NFTs is more than ever.
In the upcoming years, NFTs will play a major part in shaping the virtual world. Due to that, it can be expected that the way we communicate will be impacted by NFTs as well.
The wisest thing to do at this stage is to closely follow the industry leaders. Investing in NFTs becomes easier if you know the applications and know which one you are interested in. For example, some people like NFTs as contracts, others keep them as collectibles.
We hope that this article has helped you understand the various application of NFTs.