Non-fungible tokens, popularly called NFTs, have remained relevant, especially in today’s technological world. Their unique attribute of being irreplaceable and original has kept them in the loop of use cases in the real world today.
Though NFT use cases are commonly associated with gaming, several ways exist to utilize these digital assets.
Top 7 NFT Use Cases You Can Adopt
You can find NFT use cases in several sectors, some of which include
- Gaming: One of the most popular NFT use cases today is in the gaming sector. Play-to-earn games have increased the earning potential of people worldwide. Players of these NFT games earn rewards in digital currencies, virtual land, and avatars simply by battling other players in the game, completing and moving higher in-game levels. These rewards can be traded in-game or through other NFT marketplaces to earn real economic benefits.
- Real Estate: The Real Estate sector is a significant area where NFTs have gained ground. Many investors can now own fractions of real estate using NFTs to represent ownership. Virtual worlds like Decentraland and The Sandbox enable users to purchase virtual lands where they can do anything they wish, like building a virtual house. NFTs can also help facilitate the transfer of home ownership quickly and transparently.
- Credentials: Professionals across different sectors are now utilizing NFTs to identify. This NFT use case is helpful in the educational industry and can help validate skills and qualifications. NFTs can also represent certifications and credentials and help for easy verification.
- Music: Many artists have turned to NFTs as a creative way to monetize their talent. Artists can tokenize their songs, create digital merchandise to sell to fans, and provide royalties as their music is shared across the tech space. With NFTs in the picture for the music industry, artists can take home a more significant percentage of earnings from their music. Grimes, Kings of Leon, and Nas are some artists utilizing NFTs to provide more benefits for their brands.
- Finance: Ownership of valuable NFT collections like digital art or real estate is another use case for NFTs today. NFTs can now represent debt and be used as collateral for people seeking loans and other financial instruments. Platforms like NFTfi and Zharta enable users to use their NFTs as collateral for loan benefits.
As the world evolves, there will be an increase in the adoption of Web3 technologies. With the rise in adoption, NFT use cases will remain at the forefront of innovation. However, it is still essential to remember that these digital assets are risky. Ensure to understand the space before adopting any use case of NFTs.