Non-fungible tokens (or NFTs) are a new type of digital asset designed for use in games,
collectible card systems, and other applications where token ownership needs to be verified
but cannot be duplicated. While many first learned about non-fungible tokens from
CryptoKitties, the technology has much broader potential. This article explores how NFTs are
changing the world and their use cases.
What is a Non-Fungible Token?
It’s a digital asset showing ownership. The term “non-fungible” is used because NFTs are
unique and can’t be exchanged for other tokens with the same token ID. For example, one
Apple share is equivalent to any additional Apple share. In contrast, one rare Pikachu
Pokémon card is not equal to another rare Pikachu Pokémon card. NFTs are used in place of
virtual goods like coins, gold, and points.
Use Cases of NFTs
Now let’s review a few current use cases for non-fungible tokens.
- Gaming & NFTs
The gaming industry is one of the biggest potential use cases for non-fungible tokens. The
gaming industry is valued at over $100 billion and is expected to grow further. Gamers can
purchase non-fungible tokens through Arcade, a decentralized marketplace where
developers can publish and maintain their games. Arcade users can then use the non-
fungible tokens to advance in the game. NFTs can be used in a variety of other gaming
applications. For example, they can be used as team-based tokens, allowing gamers to buy
their favorite team’s token and use it to show their loyalty. NFTs can also be used as a
replacement for virtual goods, like coins and points. If you’re playing a game and need more
tokens, you can’t duplicate them. Instead, you can use an NFT marketplace to buy necessary
- Real Estate & NFTs
The real estate industry is a prominent place to see the benefits of non-fungible tokens. For
example, you could use them to track real estate property ownership. This is helpful for both
real estate agents and owners themselves. If you’re a real estate agent, you can use NFTs to
track which properties you’ve sold. This is helpful because many properties are bought and
sold multiple times. If you sell a house, the new owner may sell it again. Using NFTs to track
that information is helpful as an agent because you can see exactly when a property was
sold and to whom. This is also helpful to property owners because they can see who owns
their property and when they can expect to receive their payments.
- Digital Art & NFTs
Art is another industry that can be greatly improved with non-fungible tokens. Online art
galleries can use NFTs to track ownership of individual artworks. This is helpful because it
ensures that one user can’t sell the same artwork to two different people at once. Hackers
and thieves often try to sell the same item to multiple people. This frequently happens with
online auctions. By using non-fungible tokens, online galleries can ensure that only one
person owns each unique artwork. NFTs can also help artists keep track of their artwork. If
you create digital art and keep a record of the individual NFTs, you can easily track which
artwork belongs to whom. Some artists have already started to use non-fungible tokens.
How Are NFTs Changing the World?
- Provide Ownership
There was no such thing as digital owners before NFTs. If an artist posted a photograph
online, anybody could simply right-click, save the image, and "claim" ownership. Consumers
may now verify they possess a digital asset owing to the blockchain technology that NFTs
are based on. This ownership confirmation opens up a whole new market for creators and
- Easy to Trade Art Online
NFTs will change the world of art. First, it’ll allow for the trade of art and collectibles online.
That doesn’t mean it will change how art is created, but it will enable us to send and receive
art in a new way. It’ll also allow for more accessibility to high-end art, and it will allow artists
to make a living off their work. NFTs are expected to change how art is valued and
purchased, digital or physical.
- Advertising & Marketing
NFTs are expected to change advertising and marketing in a multitude of ways. For starters,
NFTs will allow for more targeted advertising. This is because companies can create
specific tokens related to their product. With these tokens, marketing and advertising teams
can create a token specific to the product, which means the token will be used for a
particular product. This will allow for better and more customized marketing, which is
desperately needed in today’s world.
- Provide Evidence of Ownership
Ownership proof and transparency go hand in hand together. NFTs will enable people to
prove ownership of any asset they own. Proof of ownership has grown into a highly simple
and seamless means of verification, with everything being stored in your wallet address and
recorded indefinitely on the blockchain. This simplicity of proof can apply to anything as
simple as a concert ticket or as complex as a contract for the purchase of an entire
In conclusion, NFTs have been a game changer for the world and will continue to change it.
The world is moving towards a digital economy; with it, NFTs will completely change the
world as well.