Today, Non-Fungible Tokens are primarily associated with digital art and gaming.
To most people outside the NFT community, the term “NFT” is synonymous with funny images on the internet that are somehow sold for heinous amounts of money.
As NFT technology becomes more prevalent in the modern world, such misconceptions slowly evaporate. They are replaced with questions about the possibilities that NFTs offer to the average person.
One of those questions relates to the usage of NFTs in real-world applications.
NFTs and the Real World
NFT technology promises tremendous monetization capability within the virtual world. In fact, some experts believe that the NFT industry will hit a valuation of $80 billion by 2025.
However, this begs the question: Do NFTs have real-world applications outside of digital art and gaming?
To answer this question, it is best to take a look at some real-world examples of how non-fungible tokens can be used in different industries.
Future of NFTs in Real-World Applications
Since NFTs serve as a sort of digital provenance, their use mostly comes down to proof of ownership of certain goods. We can easily see how this concept can be applied to both digital and physical goods in the future.
The Metaverse and NFT technology allows the music industry to conveniently sell their music directly to their fans. By tokenizing their tracks, for the first time, musicians completely controlled how they publish, distribute, advertise, and monetize their creations.
This has even led to hip-hop legend Snoop Dogg promoting NFT technology and the Metaverse.
Traditionally, when a piece of property is purchased, a certificate is given to the buyer as proof of ownership.
Using NFTs to represent ownership of said property seems like the logical next step since NFTs are recorded in a Blockchain and, therefore, can’t be copied.
Additionally, the utilization of NFTs seems to be lowering the entry barrier in the real estate industry. This is likely to encourage smaller investors to enter the market.
NFTs can be used as tickets for events such as concerts, seminars, movie screenings, sports matches, etc. Using NFTs in this way reduces the risk of counterfeiting and fraud.
It is also environment-friendly since no physical tickets need to be printed.
Awards and Diplomas
Another way to use NFTs for real-world applications is to tokenize things like awards and diplomas.
The first WebXR Awards in 2020 were bestowed upon the recipients in the form of NFTs. Of course, the awards had no physical properties. They were designed to be reproducible as a 3D virtual artifact.
Even though attempting to replicate the award is possible, only NFTs could prove that the recipients received the honor.
NFTs help preserve value in digital products. A question often asked is why are some represented digital goods still publicly available even after the NFT is sold.
The answer is that even if someone tries to replicate the product and sell it, they can’t replicate the NFT itself. This maintains the value of the original NFT purchase.
To Each His Own
While it is still early to tell how exactly NFT technology will influence the future, it is up to you to decide whether or not it can be a useful asset in your life
Many things we’ve listed indicate that NFTs have a future in the real world. With this in mind, it is safe to assume that, in the days to come, we will see a lot more NFT usage in many branches of the industry.