Billion Dollar NFT Use Cases
NFTs have generated a lot of attention and have already gained massive adoption in the art and video game space. Yet the lifecycle of NFTs is just beginning with the vast majority of use cases yet to be touched by teams working to build non-fungible token projects on Ethereum or Solana. Here are XXX use cases of NFTs that will see massive adoption within the next decade:
1. Identification, certification and documentation
Since NFTs contain code with a unique set of information, they are a great solution for tokenizing documentation such as degrees, academic certificates, licenses and other qualifications as well as medical records, birth and death certificates. The identity document can be coded directly on the blockchain as an NFT, which can be traced back to the owner and provide owners with a secure, transparent and permanent proof of their identity.
By doing so, NFTs could help eliminate driver’s license, visa and passport forgeries since each block much reach consensus and bad actors are penalized.
Already The Republic of San Marino announced its adoption of NFT COVID-19 vaccination passports with the hope of reducing counterfeiting efforts.
2. Real estate
Since an NFT can represent both a digital and tangible assets, they are a great tool for selling digital real estate in both the virtual and real worlds. In the virtual world, digital real estate applications are gaining traction in games such as Decentraland where players create and purchase areas in a virtual world. Using NFT ensures that the objects’ original creators and history of owners can be verified.
Another example of virtual real estate is the digital “MarsHouse,” which represents a home framed in glass and surrounded by neon lights which sold for $500,000. Other examples of virtual real estate includes the buying and selling of real estate on virtual role-playing games like Superworld.
Virtual real estate NFTs are exchangeable on NFT marketplaces through transactions that are fare more efficient and transparent than real-world real estate transactions. Ownership of virtual real estate is recorded on a decentralized ledger, rather than using a traditional deed or title allowing holders prove perpetual ownership of their digital items.
While there are already several examples of virtual real estate sales, real-world real estate applications of NFT are still in their infancy. In the coming years, using NFTs and blockchain in the real world could be an efficient way to check titles and verify ownership history.
3. Supply chain and logistics
The main use of NFTs in the supply chain surrounds authenticating products, ensuring their quality and verifying their origin. Although in the early stages, NFTs on blockchain are suitable for logistics applications because of their immutability and transparency, which allows for supply chain data that is authentic and reliable. In the food and other perishable industries, knowing where the goods have been and for how much time is crucial for both sellers and shoppers.
NFTs would also be useful for industries looking to track the use of recyclable and sustainable materials.
4. Domain name ownership
With a domain system build on the blockchain, owners can control their domains using private keys. The Internet Corporation for Assigned Names and Numbers (ICANN) controls the standard domain name service (DNS) and there is limited oversight of these domains which raises concerns about censorship and security. Blockchain domain names are recorded permanently in a public registry and cannot be deleted or altered by a third party, helping to eliminate these concerns.
Blockchain domain NFTs enable easy trading and creation of custom decentralized domain names. The Ethereum Name Service (ENS) and Unstoppable Domains are decentralized alternatives to the standard DNS, providing crypto-addresses that are similar to an Instagram or Twitter handle, where each handle is required to be unique. The added benefit of using domain names on the blockchain is that ENS and Unstoppable Domains let users buy and sell crypto-addresses.
Counterfeit tickets and merchandise are some of the critical issues plaguing the sports industry. The immutable nature of blockchains such as Solana and Ethereum could help in preventing the issue of counterfeit collectibles and tickets.
In a tokenized sports economy each game ticket is issued on blockchain and is registered to a unique owner. Sport NFTs have already been adopted by a number of professional athletes tokenizing their assets and identity on the blockchain. The value of the tokens representing successful athletes depends on their performance which could create a number of opportunities for sport markets and fan loyalty networks.