NFTs… people are still trying to figure out what they are, what they mean and what they are for. A non-fungible token (NFT) is a record on a blockchain that is associated with a particular digital or physical asset. It is a one-of-a-kind digital asset that you can own.
NFTs in news are usually linked to a piece of digital art. But, it turns out that NFTs can be used in multiple ways and for multiple reasons.
“All of the use cases we see today for monetizing NFTs center around using the unique identifier property of NFTs to track the value and ownership of items that are rarely publicly available anonymously, but In the future, we expect serial number technology to move into the background as a tool for software developers to manage the location of standard data structures and necessary functions to the operation of their applications, and yes, some of these applications may create games or tools that use the NFTs collected by users today, but they will by far be used to manage new streams of data yet to be develop and make existing data feeds available to web3 platforms”, says a Web3 expert Connor Borrego.
Here are Connor’s top 5 hot uses for NFTs that we’ll see in the near future:
Hot Use #1: Adhesions
NFTs are used for member access to online and offline experiences for community members. Because non-fungible tokens are simply a serial number for a piece of data, like an image, on the internet, which has the official NFT community image is recorded on the blockchain and publicly verifiable.
Hot Use #2: Limited Edition Digital Art or Music
Collecting limited edition digital art or music is one of the most popular and well-known ways to use NFTs to earn money. For the most part, these items are just collectibles that fans of the artist can purchase as a form of memorabilia to display to show how much they support their work, but some of these NFTs have additional uses such as a royalty share and a distribution interval. on commercial licensing of art to generate revenue. For a visual artist, that might mean turning one of their favorite tracks into printed posters, notebooks, stickers, that showcase the art, while a collectible song might tie into revenue from various streaming services where the song can be distributed.
Hot Use #3: Limited Edition Physical Products
In the art world and other markets for high-value assets like real estate or diamonds, there is a concept known as provenance, which involves understanding the chain of possession of an object. until its creator, it adds trust and transparency to the transaction and the integrity of the asset in question. Because of how blockchain works, its ledger technology provides this documentation by default, allowing it to be used as a trusted source of information for transferring ownership of high-value assets.
Hot Use #4: Financing Option
NFTs can be sold as collectibles, vouchers, or memberships, which are great tools for communities or brands that don’t have established business models, because you’re able to sell something value to people who believe in your mission and this contribution can give them different levels of control over the decision-making related to the money raised. For startups, this looks a lot like pre-selling your product and redeeming an NFT voucher with lifetime access to your future software product, while for nonprofits, this type looks like a sale at the digital oven who hires a professional chef to fundraise with the best pastries, or even as an online country club.
Hot Use #5: Data Privacy/Content Creator Use Case
For now, the people who will benefit the most from the creation of NFT are the content creators of any media or social media. Even if you are unable to monetize your content today through existing advertising platforms, it allows the limited fan base you have today to collect your viral moments and support your continued work online. Monetizing digital real estate like social media pages, websites, and apps has a suite of predictable sales models to choose from, and so most monetize from a combination of merchandise and ads, NFTs simply provide an additional option and way to reward community members, subscribers and subscribers, potentially with a chance that their item will be more than just a valuable collectible in the future.