Non-Fungible Tokens (NFTs) are currently making waves. These digital assets are selling fast, from music, arts to tacos, with some going for millions of dollars. But what exactly are NFTs, and how do they affect the real world. Simply put, NFTs are digital assets that represent real-world objects which can be bought and sold online. They use the same underlying software and technology as cryptocurrencies. Some popular ones that people are going crazy over are Bored Ape and CryptoPunks. However, this technology has more future uses, and we will discuss them in this article. So, keep reading.
NFTs in Music
NFTs can revolutionize the music industry. Presently, musicians need to sign with record labels to get their tracks to their fans. The record labels will handle marketing, distribution, and selling the tracks. This means musicians will have to share profit from their own personal assets with these record labels. However, with NFTs, musicians can bypass record labels and sell their tracks directly to their fans. They can get paid in cryptocurrencies like Bitcoin and Ethereum and keep most of the profits for themselves.
NFTs in Virtual Reality
Another area where NFTs can become helpful is in the virtual reality industry. With advancements in virtual reality technology, especially the recent popularity of the metaverse concept, the role of digital ownership cannot be underestimated. NFTs can unlock experiences in VR worlds, and by using smart contracts. These experiences can be customized and become a digital asset to be traded. A good example of VR worlds where NFTs can be useful is Decentraland, powered by the Ethereum blockchain. Users can create different assets in the virtual world, such as homes, casinos, arts and so on, which they can sell using NFTs.
NFTs in Events/Ticketing
NFTs can also bring massive changes to the ticketing system by making tickets artistic in nature. The current modern way of ticketing is done using technologies like bar codes, which seems to pose a few challenges. However, with NFTs, people can create tickets quickly and sell or exchange them without an intermediary. The benefits of integrating NFTs in ticketing include prevention of fake tickets and scams, reduced costs, perpetual revenue, quick production and more. Besides, it can automate processes like VIP access.
NFTs in Identity Management
There have always been issues with identity management and verification. Password management, security and compliance and authentication are primary concerns for individuals and companies. For so long, blockchain technology has been proposed to solve these problems. With NFTs, digital identity management can become easier. NFTs could link your identity to accounts, passports and other assets. This can also give total control over your digital identity, which is the concept behind sovereign identity. With the incorporation of NFTs in identity management, sharing of unintended personal data will be reduced.
NFTs in Supply Chains
NFTs can also work well in supply chains since companies are concerned about maintaining reliable digital data related to their physical assets. It can help create an automatic tracking registry for products right from the manufacturing phase to when it gets to the buyers. Apart from being used for traceability, NFTs can also come in handy for product origin and authentication in the supply chain. It can help in providing ownership of products as well as product certifications. However, to use NFTs in the supply chain, owners or businesses must create a digital representation of their physical object on the blockchain.
NFTs in Gaming
Another real-world use case of NFTs is in gaming. With gaming technologies becoming more advanced in recent years, assets in games can be programmed as NFTs and sold using the technology. NFTs can also be used in the casino gaming world. Casinos like platincasino.co.uk feature games with different assets in them. These assets can be redesigned to NFT technology to offer players a more immersive experience. Players will be able to battle with their NFTs and get crypto rewards. Besides that, with virtual reality games and even regular games, players can perform activities and earn rewards as NFTs.
Throughout this article, we have shed light on some real-world use cases of NFTs. Without a doubt, NFT technology can revolutionize many industries. In the music industry, it can help artists sell the tracks directly to fans without recorded labels. NFTs can also be useful in virtual reality and ticketing systems, making several processes easier. The same goes for identity management, supply chains and gaming. We can expect massive adoption of the technology in the future.