Non-Fungible Tokens known as NFTs, a non-interchangeable unit of data, a form of digital ledger that can be sold and traded is a concept on the blockchain that has received traction the past months. The metaverse mention may be incomplete without NFTs, such is the level of popularity.
The importance of these cryptographic tokens used to represent digital and real-world items and properties like artwork and virtual real-estate cannot be over-estimated.
But the potential of NFTs beyond the buying and selling of art worth millions of real-world dollars, and it this is why we want to take a look at the most important uses of Non-Fungible Tokens.
NFTs have offered artists and content creators the leverage to make a living off their art, while gathering a loyal fanbase while at it. It is the dream of a young artiste to earn money from initial sales and subsequent royalties coming from previous and future sales, with the use of NFTs a major ledger for payment.
Smart artists who may want to last in the money making scene will be intelligent enough to add a smart contract attached to their content, while maintaining the art value with community building, social media continued growth to maintain and preserve its perceived value.
Real-World Items Tokenization
One of the most popular use of Non-Fungible Tokens is using them to digitally represent real-world items, from real-estate listings, to musical albums and what have you.
The 21st century world is going digital and latching on the NFTs technology would be the most probable thing for virtual real-estate hunchos and musical artistes.
NFTs also encourage scalable use of trustless secondary marketplaces across many service industries.
Another common use of NFTs is the Decentralized Identifiers also known as DIDs which create digital identities for creators. Organizations, firms and personal brands and other entities with the use of NFTS can solidify their identities while avoiding impersonation and fraud through their Web 3 dealings.
The future interation of the internet, the metaverse principle will require a valid digital identification, and blockchain-enabled NFTs are the best way to do it.
Aside the serious business on the internet and the metaverse, a lot of our digital savvy users would love to relax and have some fun with games on the internet.
The advent of digital collectibles like the ‘Play-to-Earn Games’ has made the gaming experience more adventurous and challenging. The Axie Infinity game, developed by Sky Mavis, an NFT-based online video game in the Ethereum blockchain is an example. The game allows users to earn money in several ways, one of such is selling SLP (smooth love potions), the breeding of rare Axies and AXS staking.
Players can use NFTs to verify their earnings on the Axie Infinity Game and other online games while securing their winnings.
TechBooky’s Note: There are other uses of NFTs not listed here but it should noted that the technology at its initial stage can be volatile and can be susceptible to turbulence along the line.