Having grown in popularity over the past years, Non-Fungible Tokens (NFTs) have caused people to jump on them. This is so because of its ability to be verified, which has allowed traders to verify their authenticity – one of the reasons the market is legitimate.
Having joined the NFT market due to the hype, monetary gains, and frenzy, users now started looking for other use cases of the NFT as the market matured. It will take much more than conviction to get a user to invest their money in NFTs as users crave more utility and tangible value to the NFTs they are about to own.
The Problem with NFTs: Lack of Tangible Benefits
Non-Fungible Tokens (NFTs) have experienced an exponential rise in popularity and sky-high values. This has led to serious and ongoing concerns about a bubble pop in its market due to the fact that many projects that came before lacked any practical use or benefit.
NFTs’ introduction changed a number of industries as NFTs can now come in form of arts, music, real-world items, images, videos, GIFs, etc. Owning digital artwork and the use of Play-to-Earn (P2E) gaming are some of the use cases of NFT.
It has brought solutions to the issue of creators having to prove they own free and endlessly copyable digital items. They are able to ensure an item’s authenticity, establish scarcity, and demonstrate ownership thanks to Blockchain.
NFTs’ popularity was fueled by the hype and headlines of huge gains made from their sales. But at a closer look, NFTs do not have any specific use cases. What is the NFT frenzy about?
Real-World Utility: Ticketing and Merchandise
NFTs must be made to improve our lives in some way. Suppose Non-Fungible Tokens (NFTs) are to continue existing when the initial buzz has died down. In that case, they will need to deviate from the norm and stop relying on exclusivity, reputation, or speculative value in order to survive. Let’s take a look at some NFT use cases.
The real-world utility is the greatest level of utility for NFTs. This is when the owner benefits from an NFT’s ownership in real life. A good use case for real-world utility is digital ticketing. NFT tickets give a user access to an event. This can make the experience of being a fan more interesting.
Extra benefits can be added to the tickets, such as access to merchandise, backstage area, personal moments with the artist, or other things. A good example is the band Kings of Leon. They provided three different types of NFTs for the release of their new album, When You See Yourself, in order to give users a wide range of experiences.
Metaverse Real Estate: Owning Virtual Land
NFTs can show their utility in the Metaverse. Users can own NFT virtual lands on the Metaverse since NFTs are unique, and it is easy to show ownership. It will be of great use to indicate land ownership. The Metaverse is a network of 3D virtual worlds focused on social connection.
It is a system where people log into their computers using their avatars to interconnect with others. In as much as the Metaverse doesn’t seem close, it is almost here, considering the fact that we shop, work, play, and socialize online.
Internal Utility: Benefits for Project Participation
The internal utility is the utility derived from within a project. If an NFT is beneficial to its project, it has internal utility. All of your possessions will be lost if the project as a whole shut down because the utility is connected to it. An instance of internal utility is the Play-to-Earn game Axie infinity and the Sorare games.
The Future of NFTs
The future of NFTs lies in their ability to provide practical use cases and tangible value to their owners – and users are looking for more than just digital artwork and speculative trading. Real-world utility, such as digital ticketing and access to exclusive merchandise, as well as ownership of the virtual real estate in the Metaverse, can give NFTs more purpose.
Focusing on internal utility can also connect NFTs to the overall success of a project, ensuring their sustainability. In order for NFTs to remain relevant and valuable, they must evolve to provide tangible benefits beyond their novelty digital asset status.
