Known primarily for their association to art, believe it or not, there are several adaptations, and innovative NFT use cases emerging. In 2020 and 2021, the world was taken by storm. Digital art gained a resurgence, and the Chad’s extrapolated millions of dollars out of the ether and into their wallets. The age of crypto trading cards was upon us. Mimetism in full effect. Either loved or hated, it was the resurgence of a fellow called a non-fungible token.
The early adopters are always the innovators and drivers of new technologies. They’re the ones that get in on the ground floor, can understand complexities, experiment, explore, share, and inspire. When venture capital rears, its naughty little head, we know shit is about to pop off. From the early days, titans of capital have had a hardon for the NFT use cases you haven’t even thought of. Big banks, big ideas, and big dreams have pushed this jawn tenfold.
One of the biggest drivers in the adaptation and innovation of NFT use cases is the amount of venture capital that has entered the space. There has been a lot of interest in NFT marketplaces and service providers. Dapper Labs, for example, creators of NBA Top Shot, received $357 million in funding. While another project, Genies, was launched with $65 million from venture capital firm Bond.
Some of the largest venture capital investments have been:
- Dapper Labs – $357 million
- Animoca Brands – $245 million
- OpenSea – $127 million
- Genies – $103 million
- Spare – $66 million
- one – $63 million
The main markets thus far have been digital art, collectibles, and gaming. They’re heavily associated with the demographic of NFTs. Due to the technical complexities and limitations, different NFT use cases have been limited. As adoption increases and barriers to entry lower, more people will be able to use the technology and the control that a decentralized web gives them.
Enterprise NFT use cases.
In 2022, NFTs use cases are expected to continue growing. Even if naysayers are bashing the concepts and stalling innovation. Industries and experts are starting to understand the underlying concepts. They’re beginning to grasp blockchain technology and how NFTs can be applied to various applications.
Companies, corporations, and the military have been heavily linked to the invention of the computer. They’ve also been heavily related to the research and application of this technology, leading to a massive wave of adoption. NFTs, let enterprise corporations create digital assets. These digital assets can be programmable, unique, and liquid. That means that they can keep pushing the envelope and help fund innovation.
One of the first mentions of NFT use cases that reach past sentimental value and extravaganza is real estate. It was an early mention in some of the first talks about using blockchain. It was a simple explanation that a non-fungible token is simply a container that holds data inside it like, a deed. Real estate is riddled with problems, bureaucracy, complex processes, middlemen, gatekeepers, and scams.
NFTs have built-in proof of ownership, provenance and are nearly instant, making transactions faster, safer, and more liquid. The first enterprise example of this was Propy. In 2017, NFT tech listed the first apartment sold in 2021 for $90,000.
NFTs are attractive because they store unique, immutable, and publicly accessible data. They can represent a person or object and can act as a form of an identity management system. WISeKey and CasperLabs have been experimenting with NFT technology and digital identity solutions. SmartAxiom develops enterprise-grade digital asset ownership and identity solutions using its end-to-end secured private blockchain. Which can secure the identity and transactions of any kind of assets. Things like IoT devices, Digital Art, Graphics, Music, and more.
Qualifications and Credentials
Like a home, person, or object, their qualifications and credentials are unique items. No one wants to spend months or years learning skills and trades only to find out that the institution that provided the education was not qualified or even accredited. NFTs technology can help fight an industry that is plagued with fraud. BlockDegree is an example of a company currently using NFTs to issue minted certifications.
Intellectual Property and Licensing
Mr. Wonderful’s all-time favorite, licensing, is a huge benefactor of NFT technology. I would bet money that this is one of the NFT use cases that will take off in years to come. Inventors, strategists, technologists, and everyone else have ideas. With NFTs, it’s easier to exchange, track and issue these ideas. Intellectual property and licensing marketplaces can appear where people can approve public periods and conditions, making it easier to mitigate, prevent, or manage fraud.
Alibaba Group has already put its hand in this cookie jar with a marketplace that allows trademark holders to sell their intellectual property as tokenized licenses. They’re NFTs launched via a platform that issues NFTs on a “New Copyright Blockchain.” Their goal is to create a marketplace that targets writers, musicians, artists, and game developers.
IBM, a powerhouse in computing and war funding, has developed a new infrastructure for patents minted as NFTs. It helps position patents to be sold, traded, commercialized, or monetized. This will bring new liquidity for investors and innovators.
Tokenization provides greater transparency and makes related transactions more straightforward and more cost-efficient. It can be licensed, sold, and commercialized by representing IP in this way. Companies can also view the IP as an asset on their balance sheet more easily. IP can be treated as collateral or assurance of an organization’s value. It can also be more easily leveraged when seeking funding.
Supply Chain and Logistics
Another natural evolution for NFT use cases exists in supply chains and logistics. Blockchains can allow companies to create digital replications of their assets. These replications can represent the asset in a supply chain or logistics model and follow it throughout its life cycle. In doing so, NFTs create a digital twin model that exists in a trustless environment with provenance carrying immutable product data that can be tracked across many jurisdictions. MarketsN and KoineArth are two platforms that digitize documents and goods in the form of tokens and apply this as one of the many NFT use cases.
Consequently, if an object can be represented in the early stages, it can continue to be represented as it matures and moves through different processes associated with consumption. Once it hits a wholesaler or retailer’s hands, an NFT can mean a physical good. That physical good can come with additional functionality that further engages customers driving long-term customer value.
NFTs can include authenticity verification, provenance, and loyalty benefits for customers. Luxury, limited edition, commodities, and collaborations have been examples of products using this. Like 4k.com, an NFT sales auction, sites offer watches, shoes, and luxury goods.
The Hundreds, a dope ass streetwear brand I’m a big fan of, used NFTs as a way to create a collectible, push the brand and develop perks for customers that included:
- An exclusive Adam Bomb Squad T-shirt
- Early access to The Hundreds drops
- Adam Bomb Squad exclusive drops
- Adam Bomb Squad exclusive events
- “Fast-lane” privileges
- “Social token functionality”
Events and event management
Events and event management are a topic all in itself. NFTs add a new form of engagement, improve ticketing experiences, add revenue for issuers, reduce fraud and potentials of black markets. They’re a single source of truth for ticket holders and organizers. Blockchain prevents unlawful or unwanted changes, proves authenticity, reduces costs, and is produced in minutes. It can have a built-in utility, let users sell tickets they can’t use, sell past tickets collectors want, disempowers black markets, and scalping.
The black market causes fans to pay more, put themselves at risk, and create havoc on online ticketing systems. No exchange protocol makes it hard for people to exchange tickets. Or an event organizer to know who is at the event. Customers also want to trust that they’re getting an actual ticket and paying the right price. NFTs make it easy for customers to store the ticket in their wallet and access it on any device.
Tickets open opportunities for engagement. Prizes, loyalty benefits, giveaways, gamification are all examples of utility. Once minted, tickets are tradable and can be collectible. Blocktix and Bam are NFT ticketing leaders. Kred is white labeling for artists, including event management, ticketing, marketplace, and minting.
Like real estate, insurance is an industry riddled with complexities and fraud. Tokens can help with this problem; similar to many other NFT use cases, they represent unique items, data sets, rules, and restrictions. They can be applied to contractual agreements like real estate and more. Simply put, NFTs come with immutable transaction history, reduced fraud, and programmable features resulting in less bureaucracy, decreased premiums, and liquidity of the secondary market. This provides the holder with rights to financial benefits and can be sold on the secondary market.
Yearn has taken the lead and begun to offer yInsurance, which protects against hacks on DApp and Web 3.0 platforms. Its pooled insurance coverage is underwritten by Nexus Mutual. Purchasers can fill in the days and amount of crypto-assets they want to cover, and you’ll get an insurance policy for it. They can even sell that on a secondary market.
NFT use cases beyond
Beyond the wave of enterprise adoption, NFT use cases can be applied to many industries and mediums. However, moving beyond the idea of simply using the technology, there is massive potential for entire ecosystems to evolve that can merely serve the industry as a whole.
Think of infrastructure, development agencies, software as a service application, and more.
Music and media are beginning to experiment with the capabilities of encapsulating content in a tokenized coin. Defi is getting saucy and making capitol hill nervous. Global markets are exploding out of nowhere, and even countries are running on bitcoin. I don’t care what you say about non-fungible tokens or the different NFT use cases. I’m aped in something is going on here and whatever it is, the demise of humans and the rise of machines or a new gold rush.