The future through NFTs
Introduction:
We all know that NFT means Non-fungible token. A very fancy name indeed, but few really know the real mindblowing use cases of these NFTs. All we see these days is NFTs being used as Twitter pfp, artwork, photography, etc. Then one day we come across the news that a man named Sultan Gustaf Al Ghozali, a computer science student sells his selfies as NFTs and becomes a millionaire. All these things can be exciting and unbelievable at the same time. However, as time progresses there is much more to NFTs than these few popular use cases. They are increasing rapidly on the back of global adoption and vastly improving technological infrastructure and ecosystem.
Art beyond art
We just talked about NFTs being popular in art. The creative use cases of these NFTs extend to much more than art. In other creative industries such as music and film, NFTs provide musicians and filmmakers a way to directly monetize the copyrights of their work through royalties and also use them as schemes to engage their fanbase with exclusive deals, rewards, or experiences for their token holders.
Ticketing System Use Case
The ticketing system is assured to see significant adoption of NFTs in the near future. This will help minimize the issue of ticket fraud or fake tickets and hence help in the reduction of costs. Museums, movies, and theater shows are perfect use cases for such scenarios, where tickets can be tokenized and sold to customers directly. Through the use of blockchain, these organizations have a reliable way to verify the exact amount, price, and transaction properties of all their tickets, hence giving more transparency and security.
NFT and Web3 – Gaming
NFTs are a significant part of the web3 world. NFTs are fundamental parts of play to earn games. NFTs will be used in web3 to provide proof of ownership, grant people exclusive access, and certify qualifications.
In the field of gaming and esports, the values and assets have crossed the mark of $200 billion as of 2022, NFTs are unlocking avenues for players to monetize off this incredibly vast market, through new games created on the blockchain including usage metaverse. So playing games is no longer a waste of time now! Players can personally own their in-game assets and gain profits by selling them on secondary NFT markets like OpenSea or Rarible.
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Real estate, Licenses, and Consumer Goods:
NFTs have made the transfer of ownership of property and assets amazingly convenient and secure. Through tokenization of real estate as NFTs, they facilitate the financing of the same. NFTs can be used to provide an easier approach for the verification of any type of license or certificate. So now might as well get a digital NFT of your degree and other documents so that you won't have to carry that big file everywhere you go, it will be just a click away! Seen as a revolutionary concept in EduTech, educational certificates may be issued through the blockchain, using NFTs, tailored to a specific individual’s credentials, which in turn may be easily accessed and trusted by any other 3rd party institution needing this information, without the added resources needed to search for records and verify their authenticity.
Supply chain and Finance:
Supply chains of all industries such as fashion, food, or pharmaceuticals can benefit by utilizing NFTs for easier tracking of individual items and eliminate instances of fraud. NFTs have a sure-shot application in finance which will make the financial sector boom to different levels. Through NFTs, sensitive information such as a person's ID, passport, driving license, health records, and even financial records could all be tokenized into NFTs, completely stored in a secure and easily verifiable way for any 3rd party institution to access the user's discretion. Given the rigorous and costly compliance requirements that sectors such as financial services have, NFTs can provide an opportunity to reduce compliance costs for customers due to diligence and KYC procedures.
Ethereum and NFTs:
NFT minting usually takes place through Layer 1 blockchain: Ethereum. Although at the time of writing, the Ethereum blockchain may be the most popular blockchain for NFTs, other alternative blockchain solutions are gaining momentum in the market. They are aiming at providing lower transaction fees and therefore are increasingly gaining adoption. There is still no universal consensus amongst industry players on token standards of non-fungible tokens across blockchains.
Conclusion:
Therefore, we have now seen ample use cases of NFTs to convince us about the amount of ease it is going to bring into our lives. NFTs can now be shared on Facebook is a recent article that has been published on Ledger Insights:
Amidst a definitely growing interest globally, many industries are beginning to understand and appreciate better the benefits that NFTs provide. This, in turn, paints a positive and favorable picture of NFTs and the role they will play in changing today’s economies and building the societies of tomorrow.
Article contributed by Varsha Iyer