Hello dear Friend, today we're going to talk about what the potential of NFTs actually is, beyond the pointless buying and selling of monkeys in caps.
Non-Futurable Tokens (NFTs) are often considered overpriced JPEG files on the internet. Viewed as an image of a bored monkey or some other digital art that can be easily copied, and for this reason, most people view NFTs with a lot of skepticism.
OpenSea, the largest NFT platform in the world, has over 80 million NFTs registered on its platform. It also has more than 1.2 million users and an average of 50,000 transactions per day. According to 101 Blockchains, in 2020, the global total NFT trading volume was about $200 million. By the first quarter of 2022, it had grown to more than 13 billion dollars.
Clearly, to sustain this huge investment, NFTs need to move from being mere digital art to becoming some kind of value reserve and offering real benefits and functionality.
Non-Futurable Tokens (NFTs) are often considered overpriced JPEG files on the internet. Viewed as an image of a bored monkey or some other digital art that can be easily copied, and for this reason, most people view NFTs with a lot of skepticism.
OpenSea, the largest NFT platform in the world, has over 80 million NFTs registered on its platform. It also has more than 1.2 million users and an average of 50,000 transactions per day. According to 101 Blockchains, in 2020, the global total NFT trading volume was about $200 million. By the first quarter of 2022, it had grown to more than 13 billion dollars.
Clearly, to sustain this huge investment, NFTs need to move from being mere digital art to becoming some kind of value reserve and offering real benefits and functionality.
Utilitarian NFTs
This is where utility NFTs come into full glory.
Utility NFTs are NFTs that offer real-world applications, not just digital tokens. They provide their owners with tangible privileges in the real world. These privileges can come in many forms, including exclusive rights, required rewards, access to certain events and locations, and as a symbol of belonging to some movement or group of like-minded individuals. Some industries have implemented communal NFTs more readily than others.
Since an NFT is a token that exists on the blockchain, this makes it possible to use it to authenticate authenticity and ownership over a unique asset, with the blockchain making this information impossible to forge.
Simply put, NFTs allow us to tokenize anything, especially valuable items. They provide "digital bragging rights," as they are often said, and are valued almost as highly as the items they represent.
Utility NFTs are NFTs that offer real-world applications, not just digital tokens. They provide their owners with tangible privileges in the real world. These privileges can come in many forms, including exclusive rights, required rewards, access to certain events and locations, and as a symbol of belonging to some movement or group of like-minded individuals. Some industries have implemented communal NFTs more readily than others.
Since an NFT is a token that exists on the blockchain, this makes it possible to use it to authenticate authenticity and ownership over a unique asset, with the blockchain making this information impossible to forge.
Simply put, NFTs allow us to tokenize anything, especially valuable items. They provide "digital bragging rights," as they are often said, and are valued almost as highly as the items they represent.
Industries with the potential to utilize NFT:
Gaming industry
Service NFTs in games can represent in-game assets. As gamers advance in games and win in-game collectibles, they can claim them as NFTs. These in-game NFTs can then be exchanged for valuable items or money (crypto or fiat). This is common in blockchain games where there is an opportunity to earn money (P2E). In games where more challenging levels unlock unique NFTs, these utility NFTs are proven ways to rank players globally. In addition, in-game NFTs can be used to purchase in-game tools and financial transactions in the game world.
A good example is the game Joker Smile, the game created 7 types of NFT tokens that the player had to collect over time in order to access the hidden information that the author had hidden in the tokens. This mental game was created so that its player, having passed a number of personal tests and tasks, could change his life for the better, expand his thinking and worldview by means of acquiring new skills, knowledge and even abilities.
From receiving his first "Joker" (so called NFT tokens of the game) the player according to the rules of the game must fulfill certain conditions or in other words rules before acquiring the next "Joker" and become one step higher to victory in the game, namely, to improve himself as a Person, a Man of Reason.
A good example is the game Joker Smile, the game created 7 types of NFT tokens that the player had to collect over time in order to access the hidden information that the author had hidden in the tokens. This mental game was created so that its player, having passed a number of personal tests and tasks, could change his life for the better, expand his thinking and worldview by means of acquiring new skills, knowledge and even abilities.
From receiving his first "Joker" (so called NFT tokens of the game) the player according to the rules of the game must fulfill certain conditions or in other words rules before acquiring the next "Joker" and become one step higher to victory in the game, namely, to improve himself as a Person, a Man of Reason.
Exclusive tickets to events and communities
Since NFTs are immutable and verifiable, a good practical use is to use them to grant access to events. In this case, service NFTs act like event tickets and community passes. They offer secure and fraud-proof access to communities, events and live video meetings. Social clubs, gated communities, and high-end events have begun to explore this use case, and we'll likely see more in the near future.
An example that easily comes to mind is the Bored Ape Yacht Club (BAYC) . The owners of this particular NFT are confirmed members of the club as it acts as a form of membership card. Some of the privileges they enjoy include exclusive merchandise, access to private online forums and special live events for members only.
Few celebrities own a BAYC NFT, including Tom Brady, Justin Bieber, Madonna, Neymar Jr, Memphis Depay, Stephen Curry and Serena Williams.
An example that easily comes to mind is the Bored Ape Yacht Club (BAYC) . The owners of this particular NFT are confirmed members of the club as it acts as a form of membership card. Some of the privileges they enjoy include exclusive merchandise, access to private online forums and special live events for members only.
Few celebrities own a BAYC NFT, including Tom Brady, Justin Bieber, Madonna, Neymar Jr, Memphis Depay, Stephen Curry and Serena Williams.
Management
Another way to use service NFTs is through governance. For example, if people from all over the world pool funds for investment, since they are all spread across different continents and time zones, management can be difficult. To improve project management, each investor can get NFT utility depending on the value of their contribution.
Open source blockchain technology such as Snapshot allows NFT owners to participate in governance, voting and decision making. Many charities, even DAOs (Decentralized Autonomous Organizations), are already using this. In nonprofits, donors with NFTs can be part of the cause - tracking the use of their donor funds and participating in problem solving.
GainForest is one nonprofit that is already implementing utility NFTs. Their utility NFTs allow donors to actively influence their projects by choosing what and when to fund.
Open source blockchain technology such as Snapshot allows NFT owners to participate in governance, voting and decision making. Many charities, even DAOs (Decentralized Autonomous Organizations), are already using this. In nonprofits, donors with NFTs can be part of the cause - tracking the use of their donor funds and participating in problem solving.
GainForest is one nonprofit that is already implementing utility NFTs. Their utility NFTs allow donors to actively influence their projects by choosing what and when to fund.
Customer loyalty programs
Another way that utilitarian NFTs benefit is through customer loyalty programs.
Artists, brands, and celebrities can provide their NFT users with ongoing benefits and perks. Some of these benefits may be early access to products, limited edition items, or investment opportunities.
A good example of utilitarian NFTs is Shopify, which this year partnered with the NFT Doodles collection at SXSW 2022 to create a unique experience called Doodleland. The event was designed for festival attendees and NFT Doodle owners.
While the event was open to everyone, Doodles NFT owners could unlock all sorts of additional benefits such as exclusive access to apparel and limited edition merchandise.
These are just a few of the industries that have embraced and implemented the use of utilitarian NFTs to date. We are likely to see more of them as blockchain becomes more popular.
I hope the information was new and interesting to you, see you in future articles!
Meta Joker Team.
Artists, brands, and celebrities can provide their NFT users with ongoing benefits and perks. Some of these benefits may be early access to products, limited edition items, or investment opportunities.
A good example of utilitarian NFTs is Shopify, which this year partnered with the NFT Doodles collection at SXSW 2022 to create a unique experience called Doodleland. The event was designed for festival attendees and NFT Doodle owners.
While the event was open to everyone, Doodles NFT owners could unlock all sorts of additional benefits such as exclusive access to apparel and limited edition merchandise.
These are just a few of the industries that have embraced and implemented the use of utilitarian NFTs to date. We are likely to see more of them as blockchain becomes more popular.
I hope the information was new and interesting to you, see you in future articles!
Meta Joker Team.
