The Most Popular Use Cases for NFTs

NFTs represent a new era of the internet, where for the first time in history we can actually own and trade digital assets in a transparent way. But what can exist as an NFT? Is it just for art and collectibles? Read on to find out!

They can represent different objects and assets that exist in the digital world and at the same time, they can be associated with things that exist in the physical world, such as clothing, real estate, tickets, etc. We have to remember that the NFT space is evolving very fast and new use cases are emerging every day which are left to our own creativity.

Today, we know of several use cases of NFTs. Mostly though, we only see PFPs and digital art in the front row, but if we go deeper we can see that NFTs are invading more layers of our society and opening up new business and collaboration opportunities. Below we listed some of the most popular use cases that exist today and provided concrete examples. Let’s get into the diverse and colorful world of NFTs!

PFP

PFP (profile picture) NFTs are a type of NFT that represent unique digital avatars that users can display on their social media profiles, gaming accounts, or other online platforms. These NFTs have gained significant popularity in the crypto and blockchain communities as a way for users to show off their status and identity, and as a new form of collectibles and ownership display. Here are just 3 of the most prominent examples:

• CryptoPunks: One of the earliest OG PFP NFT projects is CryptoPunks, a collection of 10,000 unique 8-bit-style characters. Each character has its own distinct features, such as hats, glasses, and facial expressions. CryptoPunks has become a highly sought-after collection, with some individual Punks selling for millions of dollars!
• Bored Ape Yacht Club: Another popular PFP NFT project is the Bored Ape Yacht Club, a collection of 10,000 unique apes with different accessories and traits. Members of the club receive access to exclusive merchandise, events, and experiences. Currently, it’s a collection with the highest all-time volume on the Ethereum blockchain - $2,628,060,045 (Dune, 2023).
• Azuki: The Azuki NFT collection is a series of 10,000 unique digital characters launched in 2021, each with its own distinctive features and personality. The collection has sold out, with some individual NFTs selling for tens of thousands of dollars on secondary marketplaces. The success of the Azuki NFT collection highlights the potential of NFTs as a new form of art and collectibles, as well as the importance of community and storytelling in creating compelling NFT projects.

DIGITAL ART

NFTs have gained widespread attention as a way to authenticate and sell digital art. By creating an NFT, artists can prove the authenticity and ownership of their artwork, and collectors can own a unique piece of digital art that cannot be duplicated or copied. NFTs have helped art become a business and artists earn revenue through royalties - revenue from the art being sold on the secondary market, which was not possible in the traditional art market. Some high-profile sales of NFT art have garnered millions of dollars, showcasing the potential of this use case. The most prominent and one of the first ones, showcasing the huge potential of the market, was Beeple’s ‘’THE FIRST 5000 DAYS’’ which was sold for an astronomical $69 million at Christie's auction house in the UK. The sale of the work made him one of the three most valuable living artists (Christie's, 2021).

COLLECTIBLES

Did you collect baseball cards or any other material collectibles? Well, NFTs are kind of the same thing, but transferred into the digital realm and secured on the blockchain without the option of being replicated and maintaining their uniqueness. NFTs can be used to create unique and collectible items, such as trading cards or digital stamps. These items can have nostalgic or sentimental value, or they can simply be interesting and unique collectibles. One of the first NFT collectibles to gain widespread popularity was Cryptokitties - unique digital cats that can be bred and traded on the Ethereum blockchain. Another example is NBA Top Shot - an NFT collectible platform that allows users to buy, sell, and trade digital basketball highlights, or "moments," that are authenticated on the blockchain.

EVENT TICKETS

NFTs were also introduced as the newest and coolest way to get access to your favorite events, from music concerts to sports games, conferences to festivals. With NFTs, u will not only get a ticket, but also a unique piece of digital art that represents your access to an unforgttable experience. Say goodbye to boring, old paper tickets and upgrade to a digital collectible that shows off your good taste and love for cutting-edge technology. The use of NFTs as event tickets offers several advantages over traditional paper or digital tickets:

• NFTs can be verified on the blockchain, which provides a high level of security and prevents counterfeiting. This means that event organizers can have more confidence in the authenticity of the tickets and reduce the risk of fraud. They can be easily transferred between individuals on the blockchain, which provides greater flexibility for ticket holders. This means that people can sell or transfer their tickets to others, without having to worry about the risk of fraud or the need for intermediaries such as ticket scalpers.
• NFTs can be customized with unique features and benefits, which can enhance the value and experience of the event for ticket holders. For example, event organizers can offer exclusive access to backstage areas, VIP seating, or other perks for NFT holders.
• Finally, NFTs can be used to create a sense of community and shared experience among event attendees. By creating unique NFTs for different events or series, event organizers can create a sense of exclusivity and collectability, which can encourage people to attend more events in the future.

MUSIC

The world of music is evolving, and non-fungible tokens (NFTs) are playing a major role in this transformation. NFTs offer a unique opportunity for artists to sell limited-edition copies of their music to fans, creating new revenue streams and engaging experiences. These tokens also enable musicians to earn royalties from NFT sales, providing a win-win scenario for both the artist and the fan. As technology continues to advance, we can expect to see more and more music companies and musicians exploring the potential of NFTs. Some of the most famous musicians in the world, like Grimes, Deadmau5, Kings of Leon, The Weeknd and others, have already seized this opportunity and released their own NFTs.

GAMING

NFT gaming is a new and exciting use case that allows players to own and trade unique digital assets within video games. In traditional video games, all the assets and items are owned and controlled by the game developer, and players have no ownership or control over them. NFT gaming changes this dynamic by allowing game developers to create unique NFTs that represent in-game assets, such as weapons, armor, or virtual real estate. These NFTs are stored on the blockchain, which provides a secure and transparent way for players to buy, sell, and trade them with each other. Some of the most popular video games in the NFT space are Axie Infinity, Gods Unchained, The Sandbox, Splinterlands, F1 Delta Time and many others.

REAL ESTATE

Real estate NFTs represent ownership or partial ownership of a physical property, such as a piece of land, a building, or a house. These NFTs are created by digitizing the ownership rights and information about the property and storing them on a blockchain, which provides a secure and transparent way to verify ownership and transfer ownership between parties.

IDENTITY

NFTs can be used to represent digital identities, such as proof of ownership or membership in a particular community or organization. This can help to establish trust and authenticity in online interactions and transactions. Some believe that we will soon have our own passports, driver's license and medical forms in the form of NFTs. Therefore our whole identity could be stored securely on the blockchain.

CROWDFUNDING

NFTs can represent a specific project or campaign that needs funding. For example, a musician could create an NFT representing a new album they are creating and sell it to fans as a way to raise funds for the album's production. After that, the supporters (NFT holders), would become partial owners of the album. NFTs offer several advantages as a crowdfunding tool. NFTs allow creators to retain ownership and control over their work, even after it has been sold to fund the project. They offer the potential for future appreciation in value, which can provide a greater incentive for investors to support a project. In addition, NFTs can be designed with specific incentives for investors, such as access to exclusive content or merchandise related to the project. This can help to create a sense of community around the project and generate more support.

While the world of NFTs is still in its infancy and hasn't quite hit the mainstream yet, it's already clear that this digital landscape is teeming with life and bursting with creativity. From art to music to gaming, there are countless projects and use cases that are pushing the boundaries of what we thought was possible. And the best part? With new innovations popping up all the time, we're just getting started. So come on in, let your imagination run wild, and see what kind of magic you can create in this exciting new frontier.

If you would like to share any other interesting NFT use case, let us know on Twitter or in our Discord! We would love to hear from you.

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