Introduction
NFTs, or non-fungible tokens, are digital assets which can’t be copied or substituted due to their unique use of blockchain technology, giving users a safe, decentralized record of ownership. NFTs are frequently used to monitor the ownership of both physical and digital property since they cannot be reproduced or altered. They attracted attention by registering the ownership of digital art pieces that could be purchased and sold on NFT markets.
The following six industries’ most popular NFT application cases are:
1. Music
2. Event ticketing
3. Virtual real estate
4. Gaming
5. Fashion
6. Supply chain
1. Music: Musicians such as John Legend, Grimes, and Kings of Leon are using blockchain technology, especially NFTs, to generate and store digital music, album art, and memorabilia. NFTs allow musicians to tokenize their songs, pay royalties to creators and producers, and offer digital products to boost their revenue. Kings of Leon even made their song “Time in Disguise” into an NFT and performed it in space. NFTs are attractive to the music industry for investment purposes since they provide a way to cut out the middlemen and take a greater financial share of the pie. This is referred to as the “90/10 rule” by the CEO and creator of the NFT market YellowHeart. Usually, the artist receives 90% of the earnings, while the platform receives 10%.
2. Event ticketing: Prominent event tickets frequently sell out rapidly, and 39% of ticketing traffic is generated by bots. This may be annoying for both buyers and event organizers, and it can lead to fraud cases. NFT ticketing on a blockchain provides a secure substitute for traditional ticketing. NFT tickets may be used as access passes to live or virtual events, which helps reduce fraud and scalping. Event organizers may use blockchain technology to examine transaction histories and avoid fraud. NFT tickets can also assist issuers in interacting with consumers by providing benefits like surprise freebies, token-gated sites, and special experiences.
3. Virtual real estate: The metaverse is a system of immersive virtual worlds where individuals may communicate, create, play games, shop, and work. A key component of the metaverse is virtual real estate. In virtual worlds like Decentraland, The Sandbox, and Roblox, limited land is sold using NFTs, and IT firms are constructing these worlds. Big companies have staked their claims in the digital space, and NFTs are transferring ownership to customers’ cryptocurrency wallets. Users can create their own NFTs, such as clothing, furniture, and electronics, and then trade and sell them.
4. Gaming: Play-to-earn (P2E) games have grown in popularity as a way for people to turn their free time into money. NFT technology has also attracted the attention of the game industry, as it enables the transfer of digital ownership to the physical world. Around $4.5 billion in gaming-related NFT trading activity was observed in 2021. Despite objections from established gaming communities, the success of GameFi and NFT gaming concepts has resulted in visionary start-ups with valuations of $100 million or more in a matter of months. The expansion of players in response to the benefits of Blockchain and NFT technology is a deciding element in this assessment. The gaming business is growing more intriguing and profitable as players begin to sell NFTs among their teams.
5. Fashion: NFTs have gained popularity as fashion accessories that avatars may wear while travelling around the virtual world, attending events like concerts or meetings. Big companies have already created virtual boutiques in Decentraland, where they are selling NFT bags together with real apparel goods. Physical shops and websites served as inspiration for these NFT clothing designs.
6. Supply chain: Blockchain technology has been used to increase monitoring, transparency, and payment efficiency in the global supply chain. Being digital twins, NFTs make it possible to verify and trace things at every stage of the supply chain. Once the product changes hands, ownership may be transferred due to these NFTs, which track and confirm touchpoints. They are useful for obtaining reliable insights and making well-informed decisions since they also provide simple access to a product’s data.
Conclusion
NFTs are a game-changing technology with several applications in the supply chain, music, gaming, and fashion. For artists, collectors, and investors, they open up new opportunities by providing transparency, authenticity, and validity. NFTs will continue to reshape digital ownership and change industries as technology advances.
