NFT Utility in 2022: Exploring NFT Cases

May 24, 2022

9 min read

Even if you’re brand new to Web3, you’ve probably heard about NFTs. Non-fungible tokens, sometimes known as NFTs, are one of the two main token types in the blockchain business, along with fungible tokens. The term “non-fungible” comes from traditional economics and refers to interchangeable goods, so NFTs are one-of-a-kind. Furthermore, the NFT sector has quickly grown to become one of the industry’s most prominent areas, transforming the digital asset space dramatically. The significant interest in NFTs stems in part from their adaptability, which means they can be used in a variety of situations. As a result, we’ll focus our attention in this essay on NFT use cases in 2022. If you’re interested in learning more about the concept of NFT utility, keep reading!

Most people identify NFTs with digital art and collectables like Bored Ape Yacht Club and Crypto Punks; however, NFTs are much more. As a result, we’ll highlight fascinating NFT use scenarios in 2022 in this post. Hopefully, this has sparked your imagination to create your own NFTs in the near future.

You’ve come to the right place if you’re interested in minting your own NFT or Web3 development in general. Use Cases for NFT 2022 NFTs have quickly become one of the most significant elements of the crypto sector and being highly flexible tokens, they offer a wide range of applications. As a result, the next sections will go deeper into the NFT utility.

Exclusive Membership

In 2022, offering exclusive access to organizations like DAOs will be a major use case for NFTs. DAO is for decentralized autonomous organization, and it refers to the governing body of a blockchain project or protocol. As a result, if you own an NFT that grants you access to a DAO, you also get unique rights to participate in the governance of that platform, project, or dapp (decentralized application). Furthermore, NFTs can be used as a sign that someone is a member of a community, has won a competition, or is dedicated to a certain business. 

Finally, NFTs might grant exclusive access to specific events. This is true not only in digital environments but also in physical events and real-life situations. The Flyfish Club, for example, is marketed as the first member-only eating club, with exclusive entry purchased in the form of an NFT. As a result, token holders will have access to cultural and social experiences.

The Flyfish Club is an early example of a real-world application for NFTs, and we should expect to see more of these types of projects as NFTs become more mainstream and widespread.

Clothing & Wearables

The second category of example use applications for NFTs in 2022 that we’ll look at is wearables and clothes. This industry is already well-known and has gained a lot of attention in the last year. This is also a sector monitor, as digital wearables are expected to rise even more in 2022. Video games and the metaverse are frequently related to NFT wearables. NFTs can be used to depict objects or pieces of apparel worn by avatars in games or other virtual worlds. However, this isn’t the whole story; there are additional methods to use NFT in the apparel industry. 

Virtual wearables for social media are another example. Influencers who use virtual things to be more sustainable have created quite a stir. They employ NFT wearables as a more eco-friendly alternative to buying fresh, tangible garments for a single photo shoot. This is an intriguing industry that has the potential to grow into something bigger.

Finally, NFT wearables aren’t just for digital brands; they may have an impact on traditional brands as well. GAP, for instance, allows you to claim products in-store provided you have a specific form of NFT. This relates to the concept of exclusive memberships, in which you can gain access to special things from a specific brand as an NFT holder.

Music NFTs NFT Utility

The music industry is another fascinating sector that could benefit from NFTs. Large corporations and record companies, as you may know, may make a lot of money in this market. However, their success is frequently achieved at the expense of individual artists and through inefficient penny-per-stream business methods.

Music NFTs could be a more efficient and advantageous approach for individual musicians to monetise their work. This means that artists can really own their work, including trademarks, copyright, and other rights, and that this information can be kept in a token’s metadata. Music NFTs would also let fans form groups and directly support their favourite musicians. As a result, NFTs have the ability to eliminate unneeded intermediaries, which will be beneficial to artists.

Music NFT projects are one of several compelling use cases for NFTs in 2022, and we’re seeing capital poured into them. As a result, following this sector’s development and how NFTs can transform the music industry can be rather interesting. Furthermore, let’s say you’re interested in music NFTs and want to learn more about the possibilities of these tokens. 

Digital Art

Most people identify NFTs with digital art, as we indicated in the introduction. This association is not unjustified, as this is a use case that has gotten a lot of press in traditional media. Furthermore, NFTs have been used to depict digital art for a long time, indicating that the discipline is well-established.

NFTs are suitable for making one-of-a-kind art creations with unique features since they are non-fungible. As a result, it’s a technique for artists to reassure customers that a piece of work is unique. This is made possible by blockchains’ immutable records and the interchangeability of these tokens.

NFTs have transformed the digital art industry since they enable individual artists to sell their work like never before. Furthermore, conditions in the code can be added to ensure that artists receive a portion each time the NFT is sold, giving digital artists new and creative ways to monetize their work.

Platforms like OpenSea are also a significant element in the increased attention to NFTs. OpenSea is an NFT marketplace that has exploded in popularity over the last year. The website provides artists with an easy-to-use platform that makes selling and purchasing NFTs more convenient.

However, NFT art has thus far primarily concentrated on the intrinsic worth of digital assets, which may alter in 2022. Developers will most likely strive to take this technology to the next level and come up with fresh unique concepts in the coming year. NFTs, for example, could be used to represent classic art in the future. Furthermore, NFTs will enable the proof of ownership of assets, including physical goods.

Digital Identity

Digital identities are the last of the 2022 NFT use cases we’ll examine in depth. Until now, NFTs have mostly been used to collect and claim ownership of digital goods such as films, artwork, and tweets. We briefly covered NFTs representing actual assets before, and this is something that will almost certainly grow in the future. Can we, however, construct digital identities using the same principles and technologies?

This may seem far-fetched, but owing to NFTs and blockchain technology, it may become a reality. We can use the same ideas to store digital concert tickets on the blockchain, and we can apply them to digital IDs. NFTs are perfect for constructing virtual identities because of their properties and the security of blockchain technology. NFTs may, in fact, provide self-sovereign identities (SSIDs). Individuals have control over their digital identities. People will be less reliant on governments and other centralized institutions as a result. This will be an intriguing industry to watch in 2022, and one of the NFT use cases to keep an eye on.

Furthermore, having a secure identity is critical, and securing one is becoming increasingly challenging, even in familiar digital and physical contexts. When you add the metaverse to the mix, it becomes even more difficult to maintain one’s identity. NFTs, come into play here since they offer a quick and secure means to construct metaverse identities. As a result, as the world becomes more digitalized and the metaverse evolves, NFTs may become increasingly important.

Music

Another interesting area that can benefit from NFTs is the music industry. It is common knowledge that the music industry is very profitable for larger corporations and record labels, but that the artists have little or no remuneration. 

As an artist, you can now choose to deal with music NFTs instead of selling through a label. This means you can be the sole owner of your work, including trademarks, rights, and whatever else you want. This information is then stored in the metadata of a token. NFT’s music also ensures that fans can easily identify themselves and that they may support their favourite artists directly. 

Snoop Dogg is an artist who has been using NFT music for a long time. He released his track ‘Death Row Session Vol. 2’ as an NFT, which has been sold over 1.000 times (maximum) for 0.01 ETH per unit. At the time of writing, the value of the dollar in the United States is 181.046 dollars. Many investments have been made in NFT-projects in the music industry, and we think it’s interesting to keep an eye on how this sector develops.

Video Games

NFTs and the gaming industry are a marriage made in heaven, but why? In the gaming industry, NFT integration is a popular use case that is expected to play a significant role in the future of gaming. NFT’s give game developers a one-of-a-kind experience to get more out of their work and create new revenue streams, for example, by allowing gamers to continue playing a game even after they’ve completed all of the characters and objects in the game.

Play to earn is on the rise: who doesn’t want to be paid to play a game? NFTs also make it possible for games to be handled more easily. This may increase the value of a game, given that NFT-items have no intermediaries. Transactions take place directly on the blockchain, naturally, it’s always important to keep track of your transactions, because even on platforms like OpenSea, scams can occur.

Games like Axie Infinity and Battle Pets, both Pokémon-themed blockchain games with tradeable pets, make extensive use of this case. These examples demonstrate that gaming NFTs, in addition to being aesthetically pleasing, may also be quite useful. 

Virtual Land

You may argue that the metaverse is a virtual version of our real world. This means that there are also countries, cities, towns, and regions there. In the metaverse, users can create, develop, and sell areas of land to other users. Land NFTs, or ‘Virtual Land’, is the name given to these clusters of land. As an individual, you can have a little piece of Virtual Land in your possession and, as a result, gain money. Decentraland, The Sandbox, and Axie Infinity are three popular virtual land projects.

Virtual Land is a good use case for NFTs because each piece of land is unique and you can easily create a digital property. NFT Land can be used for a variety of purposes, including reclamation, socializing, gaming, and business activities. More and more big brands and businesses are investing in the NFT sector, including Adidas and Snoop Dogg.

For only a short time, NFTs have also been used to replace tickets. Because NFT blockchain ticketing has a lot of benefits, it’s logical. It provides a great deal of flexibility, and you always have access to secure, verifiable data. The GET Protocol is a good example of a company that uses this method. 

Ticketing will play a role in everyday life as well. Instead of parking tickets, we can get NFT-billets, which come with a unique ID that you may use whenever you’re in a paid-parking zone. NFT ticketing eliminates fraud issues while reducing paper usage: NFT owners just need one token instead of multiple tickets. The same concept can be used for bus tickets or other modes of transportation in which payment is made at many points throughout the journey and verified using scanners.

The Sandbox editorial. Illustrative photo for news about The Sandbox – an NFT-based online video game

Users Rights

The evolution of the internet has taken a long time, but since the introduction of Web3 and NFTs, there has been a shift. Whereas the internet used to be a place where you could lose your identity with a single click, NFTs now offer a practical solution. If we look to the future, we’ll see that more businesses are adopting the idea of using NFTs to verify the property. But, can the same trick is used on other people? ‘Yes’ is the answer. NFT’s can be used to denote online anonymity and provide access to a fully verified network, reducing fraud and crime.

With the right Smart Contracts in place, the blockchain can provide you complete visibility into who has access to your online identity and where your data is going. It’s also worth considering that you’ll be charged a fee if your personal information falls into the hands of someone else. This would put countries and internet users in a position to enforce rights, which are outlined in privacy laws and regulations. The characteristics of NFTs and the security of blockchain technology make this use case extremely relevant. This is a growing industry, and we must keep up with the latest developments.

Real Estate

The real estate sector is more than open to NFTs. Transactions can be simplified, and contracts can be completed faster – all while sensitive data such as credit card information is protected. Thanks to NFTs, automatic payments are now possible.

You can learn everything you need to know about a home you want to buy with only a few taps on your phone. When a building is constructed, it is important to know who the original owner was, what modifications have been made, and why. As a result, you’ll be able to decide a lot faster to buy or not. This is useful for sellers as it saves a lot of time and effort.

On the subject of Web3 and NFTs, there is a lot to learn. Do you want to learn more about NFTs and how you can use them to improve your marketing? We will assist you on your way! Send us your questions in the comments below, and we’ll respond as soon as possible.

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