NFT Black Box
When it comes to information, the Internet is surely the embarrassment of riches, yet nonetheless, the comprehension of the immersive NFT concept comes in the form of a hard-to-grasp black box for the mainstream audience.
With so much valuable information scattered and floating around, it’s hard to grasp the true nature of NFT usage without getting completely lost.
NFT Web3 Use Cases 2022
No need to worry anymore, our team of blockchain vets that have spent years getting their hands dirty at the coal face of the Crypto and Gaming arena got your six and presenting you with three promising NFT Web3 Use Cases in 2022, so you can keep ahead of the game and stay in the loop.
The blockchain industry boasts NFTs as one of its key features, and as a highly flexible asset, they can be used for a vast range of purposes.
Therefore, this article could not possibly cover all topics related to NFTs, so we will mainly focus on the three most interesting NFT Web3 Use Cases in 2022:
- NFT Digital Identity
- NFT Music
- NFT Fashion & Wearables
But first, a few basics. Let’s get straight head to head with what is actually an NFT.
What is NFT?
NFT stands for non-fungible tokens, which, together with fungible tokens, are the two primary types of tokens used in the crypto industry.
NFT, or non-fungible token is a new type of digital asset that is unique and cannot be exchanged for other tokens.
What does ‘Non-Fungible’ mean?
A ‘non-fungible‘ token is non-exchangeable, meaning it cannot be exchanged for another product.
So, unlike other digital assets of the same type, NFT tokens cannot be interchanged.
Blockchain Intrinsic Structure
NFTs often use the same coding software that generates cryptocurrency coins and tokens.
In this manner, NFTs are created on blockchain platforms, and each NFT is stored as a unique entry in the blockchain.
NFT Uniqueness & Value
NFTs are unique, tamper-proof, and unalterable thanks to their intrinsic blockchain structure. Since NFTs are unique, they can be used to represent Web3 ownership of rare digital or physical items.
Despite the fact that NFTs can be bought and sold like other cryptocurrencies, they cannot be exchanged for other tokens of the same kind.
Digital files such as JPEG, PNG, or MP3 can exist in multiple copies, but NFTs are entirely unique. Uniqueness is what makes NFTs valuable.
NFTs are the future of Digital Ownership?
Even though NFTs are typically associated with digital art and collectibles, they can also represent other assets, including real estate, exclusive memberships, virtual land, domain names, music, and much more.
MetaKovan & Beeple
While the NFTs have been around since 2014, they are becoming more popular nowadays for buying and selling digital art.
“Beeple,” one of today’s most prominent digital artists, created what may be the most famous NFT of all time: “EVERYDAYS: The First 5000 Days,” a record-breaking piece sold to crypto entrepreneur MetaKovan at Christie’s for an astonishing $69.3 million.
Seeing events like this as the future of digital ownership, businesses and individuals are increasingly looking at NFTs.
Next, let’s talk a bit about the Fungible Tokens.
What are Fungible Tokens?
Cryptocurrencies and fiat money are both fungible, i.e., they can be traded or exchanged.
Therefore, a fungible token could be, for example, a type of crypto token that can be exchanged for another cryptocurrency token of the same kind like Bitcoin, Ethereum, or Cardano.
Fungible tokens like cash and cryptocurrencies may be divided and exchanged; therefore, all are fungible or interchangeable.
Although NFTs are gaining massive media attention, many traditionalists wouldn’t give NFTs house room. How come?
NFTs are Fad?
The NFT (non-fungible token) market started exploding last year and is expected to continue into 2022. A variety of digital assets, including digital artwork, music, and videos, are being traded for millions of dollars.
Even so, many LARGE institutions and international companies are staying away, as they find paying for a digital image or collectible in return for some kind of blockchain ownership certificate rather unattractive.
Moreover, many say it resembles a Tulipmania that happened in the 17th century.
Are NFTs the new Tulipmania?
Tulipmania was a period in the Dutch Golden Age in which tulip prices spiked and then abruptly dropped.
Tulipmania peaked in March 1637, when some tulip bulbs sold for more than ten times a skilled craftsman’s annual income. Some historians consider this the first recorded stock market bubble.
However, although crypto enthusiasts may never see eye to eye with crypto skeptics on this point, an old Napoleonic saying applies here.
“Never interrupt your enemy when he is making a mistake.”
Indeed, while some experts believe NFTs are heading toward a bubble similar to that of the dot-com bubble and Tulipmania, others believe NFTs are here to stay and will have a major impact on the Crypto and Metaverse investments landscape.
NFT Market Growth Predictions
Considering the latest NFT market size forecasts, the skeptics may have to pick up their marbles and go home.
Over the next five years, the NFT Market is projected to grow by an impressive $147.24 billion.
Throughout the forecast period, the market is expected to grow at a CAGR (compound annual growth rate) of 35.27 %. As a result of the rise in demand for digital artworks, the NFT market is likely to register tremendous growth in the next five years.
The uncertainty of the NFT market, however, may threaten its development in the years to come making it imperative to closely monitor this newest NFT sensation.
Top Five NFT Players: Highlights
- Binance Services Holdings Ltd. – The company offers a wide range of non-fungible tokens such as Alien Worlds Binance Mission, Bored Pixel EN, Freaky Mandrill Ape, Legendary X Squid GAME, and The Virgin Mary. Edition 17.
- Decentraland Foundation – The company offers a wide range of non-fungible tokens such as AustinDCL Security Helmet, Blockchain Camouflage Guardian, Stick Woman, and Energy.
- Funko Inc. – The company offers non-fungible tokens such as Scooby doo X Funko, Transformers X Funko, Nickelodeon Cartoons X Funko, And Retro Comics X Funko.
- Gemini Trust Co. LLC – The company offers non-fungible tokens such as Fifty Cubes by Pak, Eardly by Trevor Jones Art, and The CryptoCartographer by Dave Pollot.
- OpenSea – The company offers non-fungible tokens such as Azuki, BEANZ Official, KIWAMI Genesis, Bored Ape Yacht Club, Doodles, and CyberBrokers.
Ok troops, now that we have covered the general insights about the NFT phenomenon, let us delve a little deeper into which are the 3 most interesting NFT Use Cases in 2022.
NFT Use Cases 2022
NFTs are usually related to digital art and collectibles like Crypto Punks and The Bored Ape Yacht Club, but they’re so much more.
NFTs have a wide range of potential use cases that go well beyond the world of digital collectibles and crypto gaming. They can be used to represent real-world assets like real estate, land, or even medical records.
In the world of Web 3.0, NFTs can be used to represent just about anything, and their use cases are only limited by our imagination.
Therefore, in this article, we’ll get our boots on the ground and present you with the 3 promising NFT Web3 Use Cases in 2022.
Digital identity is the first NFT use case we’ll look at.
NFT Digital Identity
For the most part, NFTs have been used to claim and track ownership of digital goods like artwork, tweets, videos, etc. A few paragraphs earlier, we mentioned that NFTs could represent physical assets, something we expect to see more of in the future.
Likewise, is it possible to create digital identities using the NFT principles and blockchain technology in a similar manner, however far-fetched it might sound?
Digital Identity Powered by Blockchain
Yes, it’s absolutely possible. Metaverse virtual event tickets can, for example, be stored on the blockchain, so we can apply the same principles to create and store our digital identities using blockchain technology.
The very nature of NFTs and the immutability of blockchain technology make them flawless for creating our Digital Identities.
Self-Sovereign Identity
NFTs may even enable self-sovereign identities (SSIDs). The Self-Sovereign Identity is an identity that you control, it’s yours and it’s yours alone.
Consequently, there will be no need to rely on centralized government organizations, making NFT Digital Identity a truly interesting NFT use case to keep an eye on in 2022.
The Importance of SSIDs
Why should we even bother to use an NFT-coded Digital Identity instead of the Physical IDs we already have?
In what’s becoming an interesting blend of physical and virtual worlds, namely the Metaverse, keeping and protecting our true identity should be of paramount importance.
Secure identities are extremely important, and they are becoming increasingly difficult to protect. Adding the Metaverse into the mix, and maintaining one’s identity becomes even more difficult.
Digital Identification with NFT
It’s at this point where NFTs come into play, as they’re a fast, reliable, and secure method of establishing one, true digital identity in the Metaverse, for example.
The use of NFTs for digital identity is a new development, but one that is poised to fundamentally transform the way we engage with the Internet in the future.
By using an NFT as our digital identity, we can have complete control over our online identity and who has access to it.
Where to Use Digital Identity?
Using NFTs for digital identification could be utilized in many ways. As an example, you could use it to log into your email account, send encrypted emails, or sign contracts.
Moreover, as we interact with others online, we would need to be able to prove our identity and have a unique Digital Identity all across the Metaverse.
By using a unique NFT coded digital identity, we can prove our identity without providing any personal information, or going through any third parties.
Considering the digitalization of the world and the evolution of the Metaverse we’re witnessing today, NFTs could end up playing a pivotal role in securing our Digital Identity.
Moreover, given the advancements with Web 3.0 technology, the goal is to provide a foundation for Web3 digital identity and allow users to carry a unique name across apps, games, wallets, and the Metaverse.
NFT Music
Since non-fungible tokens (NFTs) have recently gained widespread popularity, it’s no wonder the music industry is exploring their potential use cases.
The music industry has already seen quite a few high-profile examples of NFTs being used. Last year, Grimes sold an NFT-based song for $6 million, and 3LAU sold an NFT-based album for $11 million.
But there’s more. Gala Games, a blockchain-based gaming platform that utilizes Non-Fungible Tokens (NFT) has also created Gala Music. This platform allows music fans to participate in music-focused NFTs.
Snoop Dogg NFT Album
In addition, Gala Music has teamed up with hip-hop legend Snoop Dogg for an exclusive Listen To Earn (L2E) NFT-based album, containing three bonus tracks.
Purchases of the new Snoop Dogg L2E NFT album are not available anywhere else but Gala Music.
In addition to Steve Aoki, BT, H.E.R., 3LAU, Kings of Leon, and Bassjackers, Gala Music has collaborated with a number of other famous artists.
Listen To Earn (L2E) NFT
For example, Gala Music offers a privilege named the NFT Exclusive Drop, which provides NFT holders with exclusive photos, characters, movies, and more with the “Listen To Earn” monetization model.
Fans and Artist NFT Benefit
NFT holders will also receive coins as rewards and other benefits for listening to their favorite music, so not only will the musicians benefit from the platform, but also their fans. Doesn’t that sound great?
How to Monetize Music with NFT?
Obviously, NFT Music can become quite a lucrative industry for larger record labels and music-centric enterprises. While their profitability is sometimes at the expense of artists since they’re using penny-per-stream business models that are quite disadvantageous for musicians.
artists may benefit from the use of music NFTs as a more efficient and profitable way to monetize their work.
Basically, with NFT implementation, artists will be able to own their work as well as copyright, trademarks, IP rights, etc. This information can be added to NFT token metadata. Besides, artists could release albums as NFTs, which they could then sell to fans for a set price.
NFT Royalty Payments Enabled
Introducing an NFT system would allow artists to set their own prices for their music and collect royalties from every sale.
Fans would be able to support and directly connect with their favorite artists via music NFTs and the Listen To Earn (L2E) model as well. NFTs are therefore in a position to eliminate unnecessary intermediaries, which will ultimately benefit the artists.
NFT Revenue Streams
Another possible application of NFTs in the music industry is using them to create new revenue streams for artists.
For example, the artist could release an NFT-based song that can only be played a certain number of times. Fans would then have to purchase the NFT in order to listen to the song. This would allow artists to generate revenue from their music without having to give away their intellectual property.
NFT Premium User Experience
Finally, NFTs could also be used to create unique experiences for fans. Consider, for instance, an artist could release an NFT that, when purchased, would give the owner access to a private virtual concert. This would create a new type of VIP experience that could be sold at a premium.
NFT Music Challenges
In order to fully embrace this new technology, the NFT music industry needs to overcome some challenges associated with the use of non-fungible tokens.
- As an example, the industry needs to create a new way of valuing music in order to fully embrace NFTs. The key point to remember is that NFTs are not based on a set price, as is the case is traditional digital assets. Therefore, there is a need to come up with new metrics to value NFT music instead of tagging everyone with the same brush.
- Furthermore, it has to be figured out how to make sure everyone can use NFTs. Currently, NFTs are largely available to those who already have experience with cryptocurrencies; therefore, lighting a fuse and finding ways to open up NFTs to the general public is vital.
Nevertheless, music-related NFT projects are being heavily funded and are regarded as being among the most influential NFT use cases in 2022.
NFT Fashion & Wearables
What do you think about buying clothes that don’t exist in the physical world? Are you willing to spend a certain amount on such clothes? Hold tight, things are about to get even more interesting.
There has been a good deal of attention paid to the Virtual Fashion & Wearables segment in the past year.
It is often the case that the use of NFT fashion & wearables goes hand in hand with Video Games and Metaverse.
Quite recently, in less than five minutes, Benoit Pagotto’s design studio sold 620 pairs of digital sneakers made by the teenage artist FEWOCiOUS, generating $3.1 million in sales.
What is Move To Earn?
The good news doesn’t end there. Have you heard of STEPN, a blockchain-powered Move To Earn (M2E) healthcare and fitness application?
if you could make money by moving, how would that sound? Yes, that’s right, it sounds pretty exciting.
Well, STEPN users equipped with Web3 NFT STEPN Sneakers can move outdoors to get paid to move, earn tokens and NFT rewards.
Though the term M2E (Move To Earn) may be a new buzzword, the concept has been around for years, and it has been a method of gamifying exercise for quite some time.
STEPN Web3 Expansion
As we mentioned above, STEPN is a Move To Earn (M2E) game app that rewards users for moving outdoors. Users purchase sneakers from the NFT marketplace and walk, run, or jog outdoors to earn tokens with a real-world value.
STEPN has designed a powerful app that incentivizes daily use and encourages healthy habit-building by matching real-world activity to digital gameplay & achievements.
By doing this, STEPN has attracted a uniquely fitness-oriented audience to the Metaverse web3 world.
Running enthusiasts aren’t the only ones who are interested in getting paid to move: anyone who enjoys being outside on foot is intrigued by the idea of getting rewarded for exercising. This effectively renders web3 adoption appealing to a much wider audience than before.
Using gamification, traditional gaming elements are integrated into non-gaming activities, like fashion & wearables to facilitate their use on a broader scale.
NFT is Coming to Sports
While we’re at it, how about we quickly glance at what NFTs have to do with professional sport and how they relate to it? We guess that almost everyone remembers how Nintendo popularized mobile games based on movement with Pokémon GO, right? Earlier on, we also had the Wii console, introducing Wii Sports.
By now you could easily imagine how NFTs and Move To Earn could be utilized together.
In a way, the majority of sports could even be considered a form of M2E (Move To Earn) game since professional athletes earn money through sponsorships, winning competitions, etc.
Likewise, even FIFA and football, the most popular sport in the world, adopted blockchain technology and NFTs just a few days ago.
BREAKING: @FIFAcom has announced #Algorand will become the official blockchain of FIFA, empowering the global football community with cutting-edge, sustainable technology. Read more 👉 https://t.co/LTTUqGNLNA @FIFAWorldCup #FIFAWorldCup pic.twitter.com/LuEFTY3WK6
— Algorand (@Algorand) May 2, 2022
Furthermore, Web3 Move To Earn (M2E) NFTs have made it possible for everyone to get paid to move and earn financial rewards as a result of their activity.
Here you can find more information about STEPN and Move To Earn.
Virtual Fashion & Wearables in the Metaverse
According to some entrepreneurs in this field, virtual Fashion & Wearables will become ubiquitous soon enough.
See? Remember, we’re talking about fashion in the virtual world.
NFT Avatars in the Metaverse
Realizing how merging the physical and digital worlds will change our perception of what is real is the first step to understanding the Metaverse.
The concept may come from science fiction, but the business opportunities that exist in this fast-developing fusion of digital and physical worlds are real.
Moreover, Metaverse has evolved from the Gaming Industry, where players already transact over 100 billion dollars in virtual goods each year.
About one-third of the world’s population plays video games regularly. Games are the world’s leading form of entertainment, and people prefer video games to movies and TV shows across generations.
The use of NFTs is common in Web3 blockchain games, and some games are built entirely around the in-game NFT marketplaces.
NFTs can be, for example, used to represent items or pieces of clothing worn by avatars in digital worlds such as video games or other interactive applications in Metaverse.
Indeed, things have changed considerably from the days when avatars were dressed as battleground characters. Obviously, crypto gaming and Metaverse are now becoming lucrative channels for luxury brands to reach their target audience with NFTs.
Virtual Wearables for Social Media
Having said that, this isn’t the whole story, because there are a lot of other ways to use NFTs in the Fashion & Wearable industry.
A further example would be social media-related virtual wearables.
Influencers Like NFTs
As a way to be seen as more resourceful, and last longer, influencers are often using virtual items.
Instead of buying brand-new clothing every time they do a photo shoot, they use NFT wearables as an environmentally friendly alternative.
Virtual Fashion and Digital Wearables are sure to grow in 2022 and it could also turn out to be a promising field that might expand substantially over time.
Other NFT Use Cases
A number of use cases are constantly emerging for NFTs, which is quickly becoming one of the most important aspects of Web3 expansion.
Oftentimes, NFTs are associated only with digital art; however, there are a variety of use cases where it can be advantageous to have NFTs implemented.
In this article, we have outlined three promising NFT Web3 use cases in 2022 we believe are worth exploring further. Let’s look at them again:
- NFT Digital Identity
- NFT Music
- NFT Fashion & Wearables
These are only three striking examples of NFT use cases we covered today, and they’re a dime a dozen since there is an abundance of other NFT use cases, such as:
- Crypto Gaming Industry
- DeFi,
- Exclusive Memberships,
- Digital Art,
- Real Estate,
- Decentralized Commerce
- Medical Records
- Ticketing
- Banking, Loans & Mortgages
- IP & Patents
- Decentralized Social Media
Are You Not NFTertained?
You might find all this a bit sci-fi-like, we get it. Nevertheless, seems like fashion, sport, and many other industries recognized the digital world opportunities and are moving toward de-materialization, which will undoubtedly revolutionize the way we live, work and play.
Conclusion
Blockchain-coded NFTs hold the capability to impact numerous different fields of the new emerging economies and are flexible in their application, a fact highlighted by the sheer variety of NFT use case possibilities.
Of course, NFTs would have to endure the growing pains and roll with the punches, but ultimately, the NFT crypto-based architecture will enable a new wave of Web3 decentralized applications and use cases that were simply not possible before.
Moreover, with the plethora of different NFT products available today, and the rapid embracement of Web3 and Metaverse that are not anymore in the domain of wishful thinking, it’s hardly any surprise that there will be huge markets emerging around this rapidly expanding non-fungible trend in the near future, pushing the barriers even higher.
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party, and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high-risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.
