NFTs & Their Use Cases

Non-Fungible Tokens (NFTs) have lately attracted a lot of investor attention, with some NFTs achieving selling values that were previously unfathomable for a non-fungible virtual asset.

Through the lens of the non-fungibility of a digital asset, this raises fascinating questions about “value” and “scarcity” about blockchain technology. This article aims to draw attention to the growing demand for NFTs in different industries.

What are NFTs (non-fungible tokens), and what are their applications?

Non-fungible tokens, or NFTs, are cryptographic assets on the Blockchain with unique identifying codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be sold or exchanged for equivalents. This contrasts with fungible tokens, such as cryptocurrencies, which are interchangeable and may be used as a medium of trade.

NFT use cases are endless, and it has the prospect of changing the world in the future. While the NFT ecosystem is still in its infancy, there are several exciting projects to look into, some of which are already delivering considerable value to producers and consumers.

Very few of its use cases are as follows:

Fintech

It’s easy to forget that not every NFT is inspired by a song, an artwork, or a collectible. In decentralized finance, NFTs also provide significant financial rewards (Defi). Most will also contain some artwork, but their value is decided by how they are used.

NFTs that are worth collecting

There’s a high market for digital collectibles, whether a PancakeSwap Bunny or a Binance Anniversary NFT. Thanks to the NBA NFC collectible trading cards NBA Top Shot, this use case has made it into the masses. In crypto art, there are a lot of overlaps, and an NFT might be both a collectible and an artwork. At present, these are our most advanced use cases.

NFTs in the Real Estate Industry

Real estate is mired in red tape, with layers of intermediaries ranging from estate agents and banks to notaries and attorneys, all adding to the cost of what should be a simple transaction between two parties. By replacing these intermediaries with smart contracts that allow for the secure and transparent transfer of ownership, NFTs might substantially speed up the property-buying process. All ownership and rights histories are recorded and committed to the Blockchain, where they can be validated instantly and effortlessly. NFTs may potentially make fractional property ownership possible, allowing owners to quickly unlock value from previously illiquid properties and obtain capital without going to a bank. The possibilities are endless, and they might have far-reaching implications that extend beyond the real estate industry and into traditional banking.

To sum up

NFTs were the trendiest subject and frothiest market in 2021, with sales volumes jumping 100x and becoming a topic of conversation on nightly talk programmes.

It took over a decade for crypto to truly infiltrate the public, whereas NFTs only required a few years to gain traction. It’s evident that NFTs are more than just another hot new fad since businesses like Budweiser, Visa, and Adidas have acquired NFTs and joined the field.