Non Fungible Token List (NFT) – Ultimate Guide
Why would anybody buy an NFT? This question getting asked a lot. here's Non Fungible Token List with explanations about the many uses of NFT
There has been a rapid increase in the development and trade of NFT based collectibles. Non-Fungible Tokens or NFTs are a type of digital assets that represent real-life objects but are available online. These can be used to represent art, music, videos, and in-game items. But why are they so popular?
The “non-fungible” in NFTs essentially refers to something unique or something that cannot be replaced. They are offering a new means of creating digitized assets, monetizing your intellectual property, and verifying the authenticity of your assets. Today, we will talking about most popular NFTs and everything NFT related.
Top Real Life Use Cases for NFTs
While NFTs have largely been attributed to their use in the digital arts industry, there are several ways non fungible tokens can be used. We will be going over some interesting NFT use cases that may very well go mainstream. So, let’s begin our non fungible token list:
1. Digital Art NFTs
First on our non fungible token list are digital art NFTs. The most widely known usage of NFT is in the creation and distribution of digital art. Artists can easily create a piece of art and then sell the ownership of that art in the form of an NFT. Many believe that NFTs will allow new artists to sell their digital art more easily online.
Once an NFT art is made, it is tokenized on the blockchain; the blockchain itself will keep this information secure from tampering or scamming, which is an excellent way to maintain ownership records. In this way, users can safely transfer the ownership of their digital art to person B if needed, and the blockchain will automatically keep an update of the transfer.
2. Gaming NFTs
One of the most popular uses of NFTs besides the digital arts industry is the gaming industry. There has been a rapid boost of NFTs in the gaming industry ever since 2001. The gaming industry relies heavily on in-game purchases.
The gaming industry relies heavily on in-game purchases, and NFTs can come in handy. For instance, consider that you are the first one to unlock a new in-game item that acts as an NFT. You can easily resell this item token to the highest bidder (with a portion of the sale going to the original owners). The same token ownership could be resold as many times as needed. This same concept can be applied to any in-game items, such as collecting cards. In this way, game makers can have an entirely new revenue stream. Axie Infinity is one of the most popular NFT games today, whose in-game digital assets are represented by NFTs.
3. Collectibles NFTs
Next one on our non fungible token list is collectibles NFTs. There has been a significant boost in demand for digital collectibles such as trading cards, sports, clips, games, music, or crypto art. Since cryptocurrency’s blockchain technology backs them, they are regarded as scarce digital assets and can sell for substantial amounts.
You can virtually sell any item you own that you believe has value as an NFT. Many collectible NFTs usually crossover as art NFTs since sometimes an NFT can both be a collectible and an art piece, but not always. A great way to understand collectible NFTs is to take the example of Jack Dorsey’s first tweet, which sold for $2.9 billion to a Malaysia-based businessman. It might seem difficult to wrap your head around how you can sell a tweet, but think of it as a signed autograph that’s rare to come by!
4. Finance NFTs
Financial NFTs are also a great application of non fungible tokens. They are used to represent financial assets such as insurance bonds to token baskets and real-world assets that have a monetary value. You can also use NFTs for different loans. This means that if you (an NFT holder) take a loan in the form of an NFT, you will have a set interest rate that will apply for the duration of your loan.
Such tokenized loans may also be sold on NFT marketplaces so that users can swap loans and interest rates. Similarly, tokenized financial products such as securities or stocks can be used as collateral to obtain loans.
5. Fashion NFTs
Fashion NFTs are often linked to the metaverse. If you are a metaverse user, you might be aware of how users can wear digital clothes and live digital lives through their avatars. Just as you can purchase clothes on-site from stores, you can purchase digital clothes online for use in the metaverse.
But digital fashion isn’t simply linked to the metaverse; it has also led to the rise of digital design and modeling of clothing worn in real life. Designers can now use NFTs to bring a new level of exclusivity to their pieces.
6. Music NFTs
Music NFTs are music clips whose ownership can be sold in the form of an NFT. The buyer then gains exclusive rights to the music clip and its use and distribution. Many users believe that NFTs could very well change the way the music industry functions.
Artists may no longer require the need for a record label or music streaming service to share their music; they could sell music and related artwork directly to their fan base and so make much more profit. The music industry has always been ridden with controversies regarding payments to artists; NFTs may change this. One popular example of NFT usage in the music industry is the 2021 NFT sale from the musician Grimes, titled WarNymphs, for a total of $6 million.
7. Logistics NFTs
NFTs also have applications in the supply chain industry. Since NFTs can ensure accurate tracking and control, they may strengthen the trust of various supply chain stakeholders. How does it work? We could simply add the metadata for a certain product being delivered to an NFT and store it in the blockchain network.
Your goods will be delivered to you, but it will also add a detailed history of its shipping from dispatch to destination. Not only will this help improve security, but it will also improve traceability and responsibility. Moreover, they will help replace the use of more complex paper trails to track packages.
8. Real Estate NFTs
If you have ever tried to invest in real estate, you might be aware of the hassle of transferring property ownership; the paperwork involved can be a true hassle. Comparatively, NFTs in real estate can make things this very same process a whole lot more streamlined, allowing buyers to assume ownership of a property within minutes.
Not only will NFTs ease the process of property ownership transfer, but they will also help improve security and data integrity owing to the underlying blockchain technology that runs NFTs.
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