Recent news on #nfts (Non-fungible tokens) caught my eyes – Dapper Labs partner with the NBA to create NBA Top Shot, and digital artist Beeple sold one of his pieces for $69 million in a Christie’s auction.

What are Non-fungible tokens?

#nfts in a way allows age-old value drivers like scarcity and intellectual property to now to be priced and exchanged in the digital world in a way that was previously difficult. In the changing landscape of cryptos, #nfts is one of the best use case in the blockchain and DeFi marketplace.

The  three distinct characteristics of NFTs are.

1. Non-fungibility: As the name implies, each NFT is a cryptographic token that represents something unique or non-fungible, meaning it’s not interchangeable with another NFT
2. Rarity: The scarcity of each NFT is a crucial component of what makes them desirable.
3. Indivisibility: Cryptocurrencies like bitcoin are divisible into smaller units, given their fungibility and intended use as a medium of exchange

Use Cases of NFTs

We can think of a few more use cases of #nfts,

The first use case that comes to my mind is Gaming. NFTs are revolutionizing the way gamers think about online gaming and in-game asset purchases. While the global gaming industry continues to grow across all markets, it remains structured in a way that primarily benefits game developers and perpetuates a one-directional flow of value where players spend money to unlock access to in-game assets and gameplay configurations. In contrast, blockchain technology in gaming is driven by non-fungible tokens (NFTs), digital assets that represent in-game content. These tokens are unique, rare, and indivisible, while the blockchain networks that underpin NFTs facilitate player ownership, provable scarcity, interoperability, and immutability. Together, these advantages have the potential to drive mainstream adoption and a far more equitable value model.

Second use case is #ghostkitchen. With #nfts, a single artist can operate with multiple pseudonymous identities to create art. That #ghostartist can now multiply the amount of art creation & release it without hurting the value and price of their existing art.

The third one is #ticketingsystem. With #nfts, rules can be written into the token. This allows the issuer of a token to receive a perpetual royalty to the value that they create. This could create a financial incentive for ticket issuers to increase secondary market liquidity. Opportunity to build a ticketing platform to native to #nfts.

A fourth one is #digitaldisplays. Think of simple web interfaces like Mark Cuban’s Lazy .com to display lower-priced items. Next could be building digital museums or experiences that allow people to see the high-priced digital art in the world.

Fifth use case is #experiential. We are likely to see people with large audiences begin to auction off or sell non-fungible tokens that can be redeemed for various experiences. Whether the token gets a buyer a special video message from a celebrity or access to a private party, the connection between non-fungible tokens and experiences is likely to be one of the largest parts of the market. This also feels like one of the least explored areas at the moment as well.

Lastly, NFTs in #physicalgoods makes a lot of sense. Humans are really bad at thinking probabilistically. We constantly see black or white, but very little grey. This is why so many people are thinking that non-fungible tokens are going to be exclusive to the digital world. But one area that feels ripe for innovation is the intersection of non-fungible tokens and physical goods. Some people will build platforms that allow for the auctioning of physical goods, while others will create unique experiences for the two assets. Meshing together the physical and digital world will not only serve as a great bridge, but it can also create additional revenue opportunities that simply are not available in an exclusively physical or exclusively digital world.

While the above is not an exhaustive list of #nfts use cases, share thoughts on what else you are thinking about next big use case for it. Look forward to hearing from anyone working on #nfts revolution!

Recommended Reading

NFT (Non Fungible Tokens) Guide: Buying, Selling, Trading, Investing in Crypto Collectibles Art. Create Wealth and Build Assets: Or Become a NFT Digital Artist with Easy How to Instructions

What is a Non Fungible Token ? Non Fungible Tokens, or NFT’s have gotten a lot of press recently. This book is a comprehensive guide, in easy to understand terms- What an NFT is, the History of NFT’s, how to invest in NFT’s as well as how the Future is Non Fungible.. From Crypto Kitties to the $250 Million sale of the NBA’s Non Fungible Token, to the recent $69 Million sale of Beeple’s NFT at Auction House Christie’s this book is the starting point for anyone interest in investing in and understanding NFT’s.

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