Non-Fungible Token Use Cases: 4 NFT Applications Beyond Arts
According to a report by NonFungible.com, the overall trading volume of Non-Fungible Tokens (NFTs) was over $250 last year, and NFT application have become mainstream in the cryptocurrency space and the investment field at a rapid speed. NFT is worthy because of its singularity and uniqueness that it is non-copiable. That is also the main reason why investors start trading NFTs as they generate profits, not to mention a list of celebrities who more or less helped promote them on the internet.
NFTs can be used in multi-purpose and it appears to be more than just an investment, but common usage in the real world. These tokens are most known as artworks, however, there are more NFT applications and examples that can be seen in our speedy trend.
See More: What is a Non-fungible Token (NFT)?
Unique Art and Digital Collectibles – The most common NFT Application
This is the most common application that makes NFTs famous. NFT allows traders to trade collectibles in a new way, ranging from encompassing art forms to other digital pieces, such as music and movies. In general, artists can use their artwork and mint their NFTs, then every time their artworks get sold, they can get a cut for any sale of that token. The artwork containing a collage of 5000 digital images, Everydays: The First 5000 Days, was sold by a digital artist Beeple. It is the first NFT digital artwork that has been auctioned for $69 million, which is also the most expensive art piece sold in NFT history. Further, more remarkable artworks are selling as NFTs on the internet, while artists can get recognition for their works; and traders can make profitable trading.
In-game items – Trade game items in NFT markets
As we said, NFTs are not limited to artworks investments, they can also be used in some blockchain NFT games. NFTs have broadened the online gaming market to a valuable area. Since NFT games are running under the blockchain, such games allow gamers to purchase in-game virtual items as NFTs, such as weapons, gears, etc. Traders can also trade these items on NFT marketplaces, so they can exchange for other items or get profits from that.
However, in-game items can always be traded in normal online games, then why tokenize them as game NFTs, you may ask. First, these tokenized game items will still exist and still can be traded even if the game shuts down. The owner will still have the access to the NFTs. Second, all the in-game items in traditional online games belong to the game developer that ownerships cannot be transferred. But with NFTs, the owner who purchases the items has its ownership rights to do everything.
NFT Tickets for Events – Prove the Authenticity of the Ticket
This has something to do with tokenizing tickets as well. Typically, the event organizer will mint a fixed number of NFT tickets, and sell them at a fixed price or go on auctions on blockchain platforms. Buyers then can go on the selling platform and purchase their tickets.
It is a good way to avoid forged tickets and fraud because every transfer of the NFT tickets is recorded on the blockchain, in order to prove the authenticity of the ticket, and also to check the history of ownership. Even if the buyers do not go to the event, the NFT ticket can be traded afterward with a comparatively higher value than the traditional tickets.
Legal Documents – NFT Application in Transferring Legal Documents
From the NFT rule, we can tokenize “everything” into NFTs, and legal documents can also be tokenized and transferred. Since NFTs can be used to present ownership of something, you can convert any legal property documents into them. Again, it avoids fraud in fake documents in selling processes, such as trading real estate. Besides, during the transaction, there is no need to have an agent in between two parties, as it can go swiftly between only seller and buyer.
Every investment contains a certain level of risk. You should always evaluate the associated risk level before investing in any of the investment options!
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