Do you remember the wild frenzy that NFTs sparked during the 2020 lockdown?
At the time, everyone and their loved ones rushed to cash in on the hottest trend in the blockchain world. Consequently, that year, NFT artworks brought in over $250 million in sales. However, despite the massive earnings, many believe the NFT craze from 2020 has cooled off—or has it?
Since then, non-fungible tokens, or NFTs, have transformed far beyond their original use in digital art. Today, they fuel innovation across various industries.
They provide unique digital ownership and redefine how businesses operate.
Unlike cryptocurrencies like Bitcoin or Ethereum, which people can exchange one-to-one, NFTs stand out as unique digital assets.
However, this uniqueness has captured the attention of diverse industries, pushing boundaries and reshaping the concept of digital ownership.
This article will explore the many uses of NFTs and the investment opportunities they create, going beyond just art.
NFTs in Real Estate
In real estate, NFTs represent the properties sold. The seller receives payment in tokens through a crypto marketplace, while the buyer gets an NFT in their digital wallet. This NFT proves ownership of the land. Since smart contracts already handle deals and payments digitally, blockchain technology is not new to the real estate industry.
Additionally, a smart contract holds NFT data. It functions as an independent program. This fulfills all terms of the sales agreement. It can be a very expensive process to store non-fungible real estate tokens on the blockchain because they usually contain a lot of data.
As a result, smart contracts often include a link to the asset or work that the NFT represents, which is only accessible to the owner. The asset-related details that smart contracts can store may include:
- Ownership information
- Real estate location
- Investors’ rights
- Royalties go to the people involved after each NFT sale
- Ownership history of the asset
NFTs in Gaming
Secondly, NFTs in blockchain gaming represent in-game characters and rewards that incentivise gamers to play. It also provides digital property ownership. In each of these areas, NFTs make possible a wider range of actions that haven’t been possible in traditional game models.
- Characters – NFTs represent in-game characters or cards used to play the game.
- Participation – Players get NFTs as rewards after completing in-game tasks.
- Property ownership – In many online games, players can buy things that frequently have multiple revenue streams.
- Rewards – Occasionally, active players in the game will be rewarded with special-edition NFTs. They get these NFTs in honour of a special occasion, or for a limited period.
NFTs In Music
Again, music NFTs have been very popular in recent years. In music, they show possession of a one-of-a-kind item. Like a live event ticket, a collectible, or a piece of music.
People buy, sell, and exchange NFTs for other cryptocurrencies on the blockchain open market.
One of the main benefits of music NFTs is that they allow musicians to earn money from their work in ways that traditional music sales cannot provide.
Physical album releases
NFTs also represent physical album releases.
For example, the band Kings of Leon released a limited edition vinyl record as an NFT, with only 300 copies available for purchase. Each NFT sold for $50,000.
Live event tickets
Music NFTs equally show ticket ownership to live events, concerts and festivals.
This allows event organisers to combat ticket-scalping, to ensure that only legitimate ticket-holders attend the event.
In 2021, the music festival Coachella used music NFTs to represent tickets to the event. The NFT holders were able to use their tokens to gain entry to the festival, as well as access to exclusive areas and amenities.
Autographed memorabilia
An artist can sell an NFT of a unique piece of art that is related to their music such as posters, instruments, or other items signed by musicians. For example, the band Linkin Park sold an NFT featuring a signed guitar.
Fan club membership
An artist can sell NFTs to represent membership in their fan club, offering exclusive perks and benefits to members. For example, in 2020, Taylor Swift released a series of music NFTs that granted access to her official fan club.
NFTs in Healthcare
Lastly, In healthcare, NFTs show ownership of NFT medical test results, medical records, and other kinds of health information in the healthcare sector.
A patient’s medical history, for instance, might be safely and openly stored through an NFT. This facilitates quicker access and sharing of this data by healthcare professionals as needed.
By using top NFT development services, the healthcare sector can change how pharmacies track and verify the authenticity of medications, improving patient safety and reducing the risk of counterfeit drugs. So, here are some healthcare applications for NFTs.
- Pharmaceutical manufacturing: To begin with, NFTs and blockchain can help combat counterfeit drugs by speeding up the authentication process. They leave digital traces or a “token ID” that identifies an item across its lifetime.
- Medical devices: Medical equipment tokenization has gained popularity recently, particularly in third-world nations. The current trust concerns in medical practice will be improved by developing an open method of verifying the authenticity of medical equipment, ranging from basic blood sugar monitors to complex surgical pieces of equipment.
- Blood donations: Similar to the specific medical history and information of a patient, NFTs can be utilized to monitor and manage blood donations. Every blood donor receives a unique token that may be tracked across the system.
- Records keeping: NFTs have the potential to completely transform the healthcare industry, particularly in telemedicine, by facilitating doctors’ access to information and enabling them to provide prompt, precise treatment without having to repeat diagnosis.
Opportunities in Non-Fungible Tokes Beyond Art
Digital Ownership: NFTs offer a means of proving the provenance and ownership of digital assets.
Real-World Asset (RWA) Tokenisation: Physical assets can be tokenised with NFTs to increase their marketability and value.
Membership and Access Control: NFTs can be used as membership tokens, giving their holders access to exclusive goods or services.
Challenges In Non-Fungible Tokens Beyond Art
Market volatility: Significant volatility in the NFT market may discourage prospective investors and creators from entering the market.
Complexity of use: To mint and trade NFTs on current platforms, technical expertise is frequently needed.
Intellectual property concerns: As NFTs become more widely used, copyright and ownership rights concerns grow increasingly prominent.
In conclusion, NFTs have expanded beyond art to become versatile tools across various industries, highlighting the potential of blockchain technology.
As companies explore new uses, the future of NFTs looks promising, with more applications that enhance consumer engagement and verify digital ownership.
Continuous advancements will lead to even more valuable solutions for both NFT producers and consumers.
