Top 5 NFT Use Cases: NFTs are all the rage right now. But what are they, and how can brands take advantage of them? NFTs, or non-fungible tokens, are a new type of digital asset that allows for true ownership and scarcity of digital items.
This means that unlike traditional digital assets like photos or videos, NFTs can be bought, sold, and collected like physical assets. This new technology is opening up a whole world of possibilities for brands.
Non-fungible tokens (NFTs) have opened up an effective new channel for brands to generate revenue and engage their audience.
As new NFT use cases come into play, this trend is set to increase. Brands are creating their own digital artworks to attract new customers and gain recognition by going direct to the people, bypassing intermediaries like agents, distributors, and galleries.
The increasing interest in cryptocurrency and an influx of globally recognized brands such as Microsoft, Nike, Starbucks, Coca-Cola, Tesla, Gucci, and Home Depot have led to the rise of tokenization.
From collectibles to gaming to art and more, there are endless ways for brands to get involved with NFTs. In this blog post, we will explore the top 5 NFT use cases for 2022.
1. Sports NFTs
Sports collectibles are an increasingly popular use of non-fungible tokens, which is one of the most trending types for 2022. The digital nature of these tokens offers innovative opportunities missed in the physical world. Thanks to these tokens, users can collect virtual merch, buy tickets to different events, get player cards, sign autographs by sports stars, and even buy highlights from iconic moments most people will never experience.
Over 4-5 million sports fans around the world will have purchased or been gifted an NFT in 2022. In addition, by the end of 2021, experts at Deloitte forecast that over 2 billion transactions in this new industry will generate $2 billion in revenue.
In addition to the management of the game, you can also have fun with sports! The platform allows users to create their own fantasy teams, consisting of five NFT cards (non-fungible tokens). This means that customers can not only enjoy the game, but also earn money. For a total of $739.2 million so far, Sorare has managed to attract a lot of attention from potential partners and investors. On September 20, 2021, Sorare raised $680 million in funding from investors all over Europe and set the record for Series B rounds.
2. Music NFTs
One of the top applications of Non-Fungible Tokens in the music industry is the incorporation of intangible assets. Through blockchain technology, artists can create their songs, soundbites, albums, and lyrics as NFTs. That way, they can control their creations and decide who will have access to them. With software engineers writing intelligent contracts to mediate transactions, creators can receive a percentage of each resale.
Kings of Leon was the first band to release a music album in the form of an NFT back in 2021. One example of what this allowed them to do is host an auction for six golden tickets, which provide the owner with four front-row seats to a single show of every headlining tour for the rest of their life. They reported that they generated $2 billion and had sold 100 million tickets after just four days.
Snoop Dogg has recently acquired Death Row Records and is going to turn the company into the first-ever coin-less music label in the Metaverse. His latest venture is a collaboration with Nifty Gateway, holders of the largest catalog of artwork, digital media, and intellectual property in human history. In March 2021, Grimes sold $6 million worth of digital artworks at auction through an online NFT marketplace, including 10 pieces from her newest collection that features her own song.
The hype around NFTs is still building among music experts, but Tia Smith, Grammy governor and co-chair of the Music Video Committee, says she can see their potential for use in major life events like the Grammy Awards.
There are a few other ways that NFTs can be applied to music. For instance, you could use an audio NFT to combine digital art in many different formats (e.g., GIF, PNG, JPEG) to produce unique items with music incorporated into the video or song. In addition, you could give PDFs of lyrics or messages from artists when the customer opens the file in a text-based format.
3. Arts NFTs
Non-fungible tokens have helped solve longstanding problems with scarcity in digital art. How do you keep virtual artwork rare when it’s easy to copy and distribute? Though there is fake art in the real world, we’re usually able to verify its authenticity.
For example, Pak created a series of NFTs, each identical apart from the name. He called them The Cheap, The Expensive, and The Unsold. With this collection, he gave each artwork a different worth based on the title. This makes us think about what gives an artwork value.
Some people don’t know much about non-fungible tokens, but the value isn’t just in the artwork. What is more important is proving ownership of that particular asset, which leads to its popularity among crypto art enthusiasts.
Crypto art is valued mostly because of its ability to verify authenticity and ownership. Anyone can see a CryptoPunk on the Ethereum blockchain and download or save it, but we cannot actually prove ownership right now.
4. Fashion NFTs
The fashion industry is embracing the transformative potential of blockchain. Major players like Adidas and Dolce & Gabbana are designing personalized NFTs because it’s leading to increased demand for digital clothing.
Ralph Lauren introduced its very first digital apparel collection in June 2020. In an effort to reach a younger customer base, the corporation partnered with Zepeto, which is one of the most popular social media platforms among Generation Z, to create a fully articulated virtual world where users have personalized 3D avatars and dress them with exclusive items.
With non-fungible tokens, companies can make it easier to buy their designs and works. With NFTs, for example, people can purchase couture bags from certain designers and use them in video games. They can also buy unique pieces of art for their virtual characters. The best part about NFTs is that the buyer has all the ownership history, authenticity information, and purchasing details available to review before making a purchase.
5. Education NFTs
Non-fungible tokens have a lot of potentials to change the education industry. For example, students can use them to show off their achievements and confirm credentials. Trainees could also use them to prove their qualifications, class attendance, and more. Thanks to blockchain ledgers that utilize cryptographic algorithms, NFT platforms offer a secure place to store this kind of data.
Institutions can provide users with NFTs after they complete a course. Backed by smart contract mechanisms, the tokens verify their accomplishments. For instance, Duke University is one of the first institutions to give credentials in the form of unique NFTs. Coursera’s students who passed Duke Engineering’s FinTech Program are granted certificates of completion as an NFT.
NFTs are a relatively new technology, but they’ve already made a big splash in the world of art and collectibles. With their unique ability to provide scarcity and ownership verification, it’s likely that we’ll see even more use cases for NFTs in the future. From digital art to virtual real estate, there are endless possibilities for what can be tokenized with an NFT. So far, we’ve only scratched the surface of what’s possible with this technology.
Frequently Asked Questions
What is the most popular type of NFT?
The most popular type of NFT is digital artwork. As new use cases for NFTs come into play, more and more brands are creating their own digital artworks to attract new customers and gain recognition.
Whats the best for selling NFT?
The best way to sell your NFTs would be to find a reputable buyer that is willing to pay a fair price for your piece. You can also try auctioning off your NFTs to the highest bidder. Whichever route you decide to take, make sure that you are getting the best possible price for your NFT.
Which industry can use NFT?
NFT can be used by any industry as a way to create and store digital assets. The most common use cases for NFTs are in the gaming, music, and video industries.