Not just digital art: 5 practical ways to use NFT

Virtual fashion

As difficult as it is to imagine, one day, tenure in the virtual world may become as important as it is in the real world. An NFT proving ownership of a piece of digital land can be just as important as a deed of a house in the physical world.

Fashion brands are already creating digital counterparts of the actual products they sell.

Here’s how it might work: Let’s say Yves Saint Laurent sells a $ 5,000 evening dress in one of their stores. At the same time, the buyer receives a special NFT, a digital copy of the dress, which can be worn on your avatar while walking around Roblox, Fortnite or other game worlds. It may be the other way around: a digital copy of the dress is purchased first, which then gives the buyer ownership of the physical dress.

“The generation of Roblox and Fornite will be looking for brands that blend the real and the unreal so they can show it off to friends,” said Nick Pringle, executive creative director at RGA London.

Eternal web domains

One of the first concerns of an online business start-up company is choosing a website domain.

A simple, catchy URL can make a big difference in the marketing of your site and its products. Because of this and the limited number of available address extensions, some domain names have become very expensive. For the same reason, some are engaged in “domain hijacking”: they wait for popular domain names to expire, then rush to re-purchase the URL before the owner knows what happened.

Unstoppable Domains CEO Matthew Gould says it is now possible to buy or register a domain name as an NFT on the blockchain (and store it in your crypto wallet) instead of getting it from a registrar like Network Solutions or GoDaddy. With blockchain-based domain names, there is a whole new set of top-level domains available, such as .crypto and .bitcoin.

Gould explains that NFT domain registrars like Unstoppable Domains only charge a one-time fee for these domains. When site operators can buy domain names directly and own them forever, they can no longer be intercepted. However, some believe that since blockchain domains are decentralized and fairly anonymous, attackers can use them as a tool for cybercrime.

Play-to-Earn Games

Some games allow users to purchase in-game clothing and other digital goods as NFTs. For example, Epic Fortnite uses cryptocurrency to buy skins (outfits) for player avatars. This may sound a little odd since these purchases have no value outside of the game. But it makes sense for millions of gamers.

In fact, NFTs don’t have to stay within the game. Axie Infinity has enjoyed great popularity in recent months, largely because players have a chance to make real money playing. In the game, players buy cute digital pets. They can engage in battles with each other, and victories bring tokens to the owners. If they earn enough, they can breed pets to create new ones.

Players can sell their NFTs on the internal marketplace. Ultimately, players can withdraw in-game tokens and / or pet revenues from the Axie Infinity platform to open marketplaces outside of the game, where they can convert cryptocurrency to traditional currency if they wish.

This is not the only point. Actually, Axie is a cross between chess, Dungeons & Dragons and Pokémon Go. This is an example of a game developer who found a working NFT based business model that keeps players coming back. Other developers may find their own formulas in this genre.

Smart tickets for events

Imagine using Bitcoin to buy an NFT that will serve as a pass to a concert or sporting event. An NFT may include digital artwork or other special content from a group or sports team.

Once at the event, you can use the NFT to purchase additional services such as drinks, food, or a T-shirt. Companies like TicketMint and Nuarca Labs have launched platforms to support token-based ticketing. Even after the event is over, the NFT can have a value that paper tickets cannot.

If you love collecting tickets for concerts or games as memorabilia, the NFT can be stored in a crypto wallet. If it is to be a memorable event, the NFT might even be worth something.

Crypto enthusiasts say the NFT could ultimately change the economics of the event business.

After all, NFTs are smart contracts. They can be configured so that the proceeds from each sale are automatically distributed to stakeholders. A venue can get 30%, an entertainer or sports team 40%, a cleaning team 1%, and so on. Paying directly through the blockchain may make organizing events easier. In addition, it will eliminate the need for some intermediaries.

Better reward programs

Gould says that music groups, sports teams, and promoters are following the NFT space very closely because they see tokens as a great opportunity to connect with fans on a daily basis.

Since the NFT ticket is registered to you on the blockchain, the organizer of a concert or sporting event can use it for a reward program that offers additional services to certain fans. This could mean admission to a private party after the event, admission to a team meeting after the game, or an event hosted by an official fan club a few weeks after the event.

Such incentives can exist both in the real world and in the virtual one.

NFTs still have some hurdles to overcome before they are ready for mainstream use. Financial regulators may need to clarify the rules for dealing with tokens more clearly. The courts are expecting more case law disputes over NFT’s copyright. Blockchain infrastructure developers must decide how to scale the use of NFT without harming the environment.

We will probably understand that NFT has come into use when this abbreviation stops appearing in headlines. After all, these are just common smart contracts that can be linked to valuable digital content.

A source.

Cover photo: Hassel Stock / Shutterstock