How Can NFTs Be Used Practically?
The relevance of NFTs (or non-fungible tokens) is no longer restricted to the world of art and media. These digital tokens on the blockchain have gained traction over the years not only with the average collectors but also with celebrities and big brands such as Visa and Louis Vuitton partnering to launch NFT collections in the marketplace to leverage its growing popularity and make handsome riches.
By Marcus Henry
July 25th, 2022
However, there are several ways where the power of NFTs can be harnessed to make everyday lives better. The growing inclination towards the NFTs from artists, game developers makes the NFT marketplace crowded, and this is also one of the reasons for which users might experience flaws in the NFTs too. However, deploying Tron node – the popular blockchain protocol launches new standards for NFTs to mitigate its flaws.
Practical application of NFTs
Let us examine a few areas where NFTs can be used practically:
Collectibles are the first ever applications of NFTs. NFTs handled as collectibles are items with unique attributes. This leads to scarcity, subsequently to the greater demand of the collectible, increasing its worth over time. A number of in-game items and sports equipment are collectibles, helping their owners garner immense profits in the long run.
Patents can be tough to liquidate, but NFTs can help in this regard by allowing patent owners to easily commercialize their patents and make some revenue. With the tokenization of patents, we can expect to see trading environments become more safe, open and accessible. NFTs support fractional ownership of assets, facilitating the exchange of intellectual property rights.
Content creators can do away with the intermediaries and connect directly with their followers with the help of NFTs. Moreover, the NFTs can help in facilitating an immersive and unique buying experience for the customers. For example, a musician may create NFTs only of specific editions of their latest track and then auction them. For the chance to purchase exclusive copies of their music, buyers can give away the money that musicians deserve.
Brands can use NFTs on social media to create new unique brand experiences. They can make NFTs a key component of brand storytelling. This helps build brand awareness and loyalty as NFTs can help facilitate the next level of personalization. Therefore, NFTs play a crucial role in building a brand’s image. Furthermore, blockchain node hosting of Tron further enables content creators to retain complete ownership rights, authority over distribution and payments, thereby encouraging creators to express their unique perspectives and thereby form a decentralized entertainment industry.
Introduction of NFTs into the supply chain industry brings in the added worth of representing items. NFT metadata enhances the tracking of items, starting from the manufacturer all the way to its final location.
Environmental Social Governance
As a result of their huge potential for reducing CO2 emissions, NFTs are among a hot topic for climate policy worldwide. NFTs can serve as an efficient means for carbon trading due to the one-of-a-kind nature of the tokens. Well-considered use of NFTs can play a major role in preserving carbon emissions, which is in high demand around the world.
Genetics testing companies often find themselves at the receiving end for stealing sensitive data of their clients and reselling them. However, the use of NFTs to encode the digital location of genomic data is a welcome move as the data on the distributed ledger technology will remain tamper-proof thereby ensuring efficient protection of consumer identity.
Product Authenticity of High-End Brands
Fraudulent manufacturers may wipe out profits of renowned luxury brands that have to be a victim of cheap counterfeited goods. Now, blockchain-enabled non-fungible tokens can signify authenticity, helping protect companies’ cash flow and brand identity.
NFTs have recently swept through real estate as a field that has been fertile ground for NFT development. Blockchain technology even supports fractional ownership, which permits multiple asset holders to partake in a particular plot of land. Digitalization of securities and financial instruments through tokenization can simplify the transaction process and may provide investors with greater transparency related to their investments.
A buzzword today, metaverse would not have been possible sans NFTs. It is the innovative scope of NFTs that forms the driving force of some virtual worlds. The attribute of exclusiveness of their virtual world avatars and specificity in NFTs makes this world so exciting and immersive.
Don’t hesitate to earn money with play-to-earn games, another such phenomenon today. All in-game assets that players can get paid for are basically NFTs. All in-game weapons, gold pouches, dresses, and more are NFTs that can be sold or traded for currency on the marketplaces.
Brands can use the humble NFT in creative ways for brand marketing. In addition, the brand can even start to generate an additional income stream. Coca-Cola created a self-contained virtual universe by selling collectors’ editions of a classic Coca-Cola bottle by means of NFTs. The campaign generated a stunningly high sum of $575,000 for the NFTs. This illustrates the effectiveness of NFTs in marketing brands.
Blockchain-based projects have utilized NFTs to lead to enhanced financial performance in a variety of sectors. Their presence in areas like personal genetics and real estate also led to the resolution of long-standing problems in these areas. Although usually young, NFTs have the potential to reach astronomical heights. With more projects in the works, you can be confident that the use cases of these cards are going to be ever-expanding and they will be an increasingly mainstream form of currency in the years to come.