This post was originally published on Zelcore
You may be forgiven for thinking the hype around NFTs is just another bubble that’s about to pop any time. After all, the most successful projects so far have been the so-called PFPs (profile pictures), the likes of Bored Ape, CryptoPunks, and Sup Ducks. In this post, we look at NFT uses that have a place in the future of the digital economy.
The biggest mainstream for NFTs will continue to come from artwork thanks to their practicality. They are faster, easier, more democratic, and allow digital artists to create scarcity in their works.
They also enable them to earn more than they would when selling through art galleries. Smart contracts can be used to include added benefits such as royalties that go to the artist every time their work changes hands.
Currently, the typical rate is a 10% commission on resales, allowing creators the potential for a lifetime residual income. In contrast, art galleries not only fail to provide this option but also often demand a hefty commission of up to 50%.
The second trendiest NFTs application is digital collectibles in games that can be traded, sold, or rented. The marriage between NFTs and video games is inevitable because of the possibilities they bring to the table.
For example, NFT-based assets can represent collectibles such as avatars, skins, and virtual property such as a building that a player has claimed within a game world. Most gamers already follow this asset-creation lifecycle, buying digital collectibles and reselling them after playing with them or when they get bored.
In the meantime, most existing games built around NFTs involve earning tokens in the game. My Defi Pet, Gods Unchained, Battle Racers, Sandbox 3D, Alien Worlds, Gold Fever, and Sorare are a few examples.
This category presents another playground for NFTs to shine. It is already happening. Unisocks, for example, are tokens on Ethereum that you can trade as normal NFTs or turn in for a real pair.
In another use case, Defi protocol Trace Network focuses on inventory management in the fashion and luxury goods sector. It seeks to help brands mint NFTs corresponding to specific products and reduce supply chain management risks such as losses.
NFTs may increasingly receive applications in the world of decentralized finance. For instance, NFTfi allows users to use their NFTs as collateral for a loan. You get your NFT back as soon as you pay off the debt.
NFTs will also increasingly receive adoption in the creation of liquidity pools. SYNC Network, for example, offers users an opportunity to earn by staking their CryptoBonds. The company also lets liquidity providers use their CryptoBond to borrow other crypto assets for 90 days.
Goods such as awards are not highly transferable but still provide an excellent chance for NFTs in the increasingly digitized future. The first WebXR awards were issued in the form of NFTs in 2020. The design enabled anyone with the award to reproduce it as a 3D digital artifact.
Taco Bell, Coca-Cola, Microsoft, Nike, and Campbell’s are some of the brands that are trailblazing NFT marketing. They provide a clear indicator that the trend will stick around for a while. Taco Bell sold a batch of 25 NFTs in 30 minutes, with the highest bid going for 1.5 ETH. Each of the original owners also got a $500 taco bell gift card.
Another NFT trend that is catching up fast is Tweets. Jack Dorsey’s first tweet went for $2.9 million. Elon Musk, too, almost sold his tweet for $1.1 million but canceled the sale.
NFTs are the technological tools that can tie together all the valuable information that any blockchain-based system might want to take mainstream. They represent the gateway, identity, and currency for the all-new Web 3.0.