Non-fungible tokens, or NFTs, have become increasingly popular among artists, musicians, collectors, businesses, and even governments.
According to Telefónica, the number of people looking to display their artwork, musical creations or generate additional income through NFTs has not stopped growing. Through these blockchain-based digital assets, it is possible to uniquely and unrepeatablely represent everything from a photograph to a tweet, as well as any other file, object or service in the real and digital world, such as music, videos, games, collectibles, certificates and contracts and even identity.
In its blog, the Spanish telecommunications multinational talked about the main use cases for NFTs and how people are taking advantage of their many possibilities to transform artistic expression and create new forms of business.
Main use cases of NFT tokens
NFTs are unique, non-fungible digital assets that are stored on a blockchain, allowing them to offer several advantages and attributes such as scarcity, indivisibility, and censorship resistance.
In recent years, non-fungible tokens have become popular as a form of creative expression, digital ownership and alternative investment among millions of users.
The cryptoart
The main use case for NFTs is digital art or crypto art, a movement that has increasingly gained followers and enthusiasts.
As Telefónica highlighted, through NFTs, Artists and creators can present unrepeatable, unique and irreplaceable pieces, which has sparked a great deal of interest among investors and collectors. In 2021, the NFT market generated more than $3.000 billion, the company said.
Artists like Pak and Beeple used NFTs to create two of the most valued digital works: “Merge” and “Everydays: The First 5000 Days.” The first of these is a single piece fragmented into 295.417 parts that were sold individually, reaching a combined value of $91,8 million on the Nifty Gateway platform. The second is a compilation of the digital artist’s works created since he was 13 years old. “Everydays: The First 5000 Days” was auctioned by Christies in March 2020 for a total of $69,3 million.
Even Jack Dorsey, co-founder of Twitter and CEO of Block, sold the first tweet he wrote on the microblogging social network as an NFT token for 1.630,5 ether, almost $3 million at the time.
Virtual fashion
With the rise of the metaverse, digital fashion has become one of the most in-demand applications of NFT tokens. Luxury fashion houses and global brands such as Gucci, Dolce & Gabbana, Prada, Balenciaga, Hermès Paris, Nike, Puma and Adidas are some of those that have are making use of NFTs to offer new experiences to their communities of users and consumers.
Thanks to the blockchain, NFTs allow create certificates of authenticity that designers and creators can take advantage of to certify their garments and offer exclusivity.
On the other hand, the growth that the metaverse has experienced has been reflected in the demand for virtual fashion. The presentation in the virtual world has become just as important as in reality, so more and more users are concerned about the clothes they wear in the metaverse. This allows them to build their digital identities through their avatars.
Gaming and video games
Video game developers like Epic Games and Square Enix are betting on NFTs to optimize their business models and offer their player communities more engaging experiences.
Although the use of non-fungible tokens in the gaming world has generated great controversy among gaming communities, these digital assets are becoming a growing trend with the potential to revolutionize the industry.
Players can maintain ownership over in-game assets and items through NFTs. These in-game assets can be collected, traded, or exchanged on marketplace platforms, allowing players to earn economic benefits by monetizing their time and effort, as well as creating new virtual economies.
Some examples of the potential use of NFTs in the world of gaming and video games are Axie Infinity, Star Atlas, CryptoKitties and The Sandbox, to name a few.
Sports
Blockchain technology and NFT tokens also have a lot to offer the sports industry. According to Telefónica, the unique characteristics of these digital assets can Help prevent fraud and forgery at sporting eventsCompanies like Ticketmaster are revolutionizing ticket sales by digitizing them on the blockchain through the use of NFTs.
Non-fungible tokens are also used by sports teams and clubs to offer, among other things, officially licensed digital trading cards.
tokenization
Another common use of NFTs is the tokenization of goods and objects from the real and virtual world.
NFTs allow create scarce and verifiable digital versions of any objectFor example, the NBA launched an NFT platform, called NBA Top Shot, where basketball fans can buy and sell highlights from official games in the form of short videos.
Also, the Monuverso project is using NFTs to preserve the world's cultural heritage. Several of humanity's most important monuments have been tokenized on the blockchain using NFT tokens.
Tokenization with these digital assets has also spread to the real estate, automotive and even consumer industries. judicial processesichosen.
Ownership and copyright
Finally, NFT tokens can also be used to represent and manage the copyrights and licenses of creators of content.
Just as in the art, fashion and video game industries, the characteristics of blockchain technology allow NFTs to serve as a digital certificate that accredits the authorship and intellectual property of a work, piece or creation. This represents a great advantage for creators, who can protect their works from plagiarism or piracy, while being able to monetize them directly.
Continue reading: What are the main use cases of Blockchain technology?
