15 NFT application cases that may become mainstream

Whether through creation, collection or peddling, the list of celebrities embracing NFT seems to grow every hour, and the scope is getting wider and wider.

NFTs are no longer marginal things. Specifically, art and collectibles NFTs have become mainstream at an alarming rate, even faster than cryptocurrency experts expected. We now have a better understanding of why. As I wrote at the beginning of this cycle, NFTs (especially art and collectibles) are interesting, visual, culturally relevant, and they are easy to understand, while many blockchain concepts are not.

They can solve real-world problems. Ask NBA 76ers Philadelphia President of Basketball Operations Daryl Morey, who told me a few months ago, “I just moved from Houston to Philadelphia, and it was really painful. I had to move 10,000 comics. I had to move. All my murals. I have to move all these things, and for digital content, just move it with the mouse. This is definitely an advantage. This is the beginning of a mainstream trend.”

A perspective that many people in this field, including myself, may greatly underestimate is the community perspective .

When you pay for Bored Ape Yacht Club, CryptoPunk or World of Women NFT, you understand. This shows that you belong to the community. “People identify with them on a personal level,” said Maria Shen, a partner at Electric Capital, a venture capital (VC) company focused on blockchain. “Ownership shows some basic information about their identity, and it shows their rights.”

Only a year ago, art and collectible NFTs were mostly ideas with “potential”, but no one outside the cryptocurrency field took them seriously. Today, which categories are in a similar early stage of speculation, and which are likely to explode? Which silly-sounding NFTs will be recognized by Tom Brady in 2022? Which bold, industry-disrupting NFTs will be promoted by Ariana Grande in 2023? What is the next chapter of this wild narrative?

I consulted the NFT internal think tank, there are investors, founders, people who make a living on NFT-let us have a glimpse of the (possible) future. Some of these categories seem obvious. Some seem far-fetched. Some people may even find it ridiculous. However, on the whole, they have the potential to change the way we consume content, the way we spend and make money, how we prove our identity, how we participate in events, how we dress, and even where and how we spend our time. Part time.

Maybe everything is possible, now let’s start with a small case.

Chain tour

There are 2 million people playing Axie Infinity every day , and the company is now valued at US$3 billion. “The game is really exciting, billions of people have purchased digital goods in the game,” the greatest NFT platform OpenSea of CEO Devin Finzer said. The reason we haven’t seen wider adoption is that “the development cycle of games is longer than that of simple art and collection projects. There is a little delay.” He imagines that we will see the results of these developments in a year or two. .

Jamie Burke, CEO of Outlier Ventures (a blockchain venture capital and accelerator laboratory based in the UK), was initially encouraged by the findings that “people spend five times more on blockchain games than traditional games.” He said that skeptics initially ” sneered ” at the research, but then Axie appeared. Burke said that the Axie giant proved that if players can quit the game and cash out with cryptocurrency, and if they are free to “do whatever they want with money,” then they will spend more money. “It feels really obvious now,” he said, predicting that Axie is just the beginning of a larger gaming boom, which will be “a major event in the next decade.”

Fashionable wearable device

“Luxury brands are entering the NFT field,” Laglasse said, smoking a cigarette during our Zoom call. Exhibition A: On September 30, Dolce & Gabbana sold its first nine-piece NFT series called “Collezione Genesi” for $5.6 million, which is a high fashion and block Surreal combination of chains. The suit includes physical objects (such as women’s clothing) and their NFT digital companions.

Just two weeks ago, at London Fashion Week, a new brand called Auroboros called itself “the first fashion company that combines technology with physical fashion” and launched a series of digital clothing that you can use augmented reality ( AR) technology “wears” it. This is not in an encrypted meeting. This happened during London Fashion Week.

Look at the collaboration between The Bored Ape Yacht Club and The Millions (high-end streetwear), they created goods for the community. “The product sold out in a few hours,” Shen said. When fashion brands see this phenomenon, they will know that there is an eager (and financially strong) audience. “In 18 years, we have never seen something like this on our website,” Bobby Hundreds, the co-founder of The Hundreds, was amazed at the time: “Wow.”

Fashionable wearable devices may be just the tip of the iceberg. Shen imagines that NFTs can create new ways to commercialize fashion and invest in fashion. Take sports shoes as an example. “In order to turn sports shoes, you must check physical inventory,” she said. “Imagine if you can increase the speed of turnover of goods.” Or maybe new financial instruments promoted by NFTs can allow people to invest in the fashion industry. “You can create financial products, such as today’s best-selling sneaker index,” Shen said. For example, it allows you to invest in 100 of the most popular sneakers instead of throwing dice on a pair.

DeFi + NFT

Suppose you spent your last $5 million on CryptoPunk NFT, but you forgot that you need to pay rent. no problem. You can use the CryptoPunk as collateral for NFTfi loans. “NFT supports some new behaviors of assets,” said Andrew Steinwold, managing partner of Sfermion (an NFT investment company) and host of the NFT podcast.

Think about that loan. When you hand over CryptoPunk as collateral, you will automatically get it back when you pay off the debt. Due to the magic of smart contracts, NFT is transferred to the lender, eliminating the need for debt collection and bounty hunters. That is just the beginning. As my colleague David Z. Morris wrote, NFTs are being subdivided (to provide more liquidity), they act as quasi-securities and become financialized enough that they may soon cause the SEC (SEC) interest.

Burke expects innovation to continue to develop rapidly. He imagined the rise of secondary markets and even “derivative” markets. Imagine that for whatever reason, Epic Games decided not to integrate NFT into Fortnite. Maybe some derivative NFTs can fill the gap? “Suppose I have a sword, it is a very valuable sword,” Burke said. “And I want to cash it out of the game. This sword is too valuable. It has the ability to pay off my student loan or buy a house.” He continued, obviously enjoying this thought experiment: “I love my sword, but I need cash.”

Now, there is nothing you can do about it. You just had a useless sword, it was trapped in Fortnite. But maybe the “twin” of this sword—NFT—exists outside Fortnite—can be bought and sold in the derivatives market, and then some mechanism will allow the transfer of funds in Fortnite after the transaction is completed. These are the possibilities that NFT+DeFi can release.

In this case, Burke believes that before we see the NFTization of things that already exist in traditional finance (such as housing contracts), we are more likely to see new, creative, and blockchain-supported financial products. increase. “Where does the growth of DeFi come from? In this regulatory environment, it will certainly not be a real-world asset, nor will it be anything similar to securities,” Burke said. Years of battle.”

5

Events and ticketing

Another hypothesis: Drake is about to hold a concert and you want to go. The ticket is $100. Now imagine that the ticket you bought is actually an NFT. Your NFT solves the following six things:

  • Some artwork by your favorite designer is printed on it.
  • As a concert souvenir. So one day it may be valuable, such as the old ticket stubs for the Beatles concert.
  • You can use NFT as a way to get snacks or beer in the venue.
  • Thanks again to the magic of smart contracts, your NFT income will automatically pay Drake 40%, DJ 10%, lighting group 2%, gatekeeper 1%, and so on. There is no need for an intermediary to arrange payment, which means you hardly need to pay any additional fees.
  • If you purchase a VIP ticket, NFT will unlock your access to the Drake backend, or it may provide you with exclusive access to future digital products.
  • Surprisingly, NFT gives you the right not only to be a participant in the event, but also to become a shareholder of the Drake concert. This NFT acts as concert equity and you will get a small portion of the profit. Maybe you can even make money by participating in the show.

This future is closer than you think. “What excites us is the use of NFT in the real world,” said Carolin Wend, co-founder of Mintbase, the NFT casting platform. Take the upcoming NEARCon festival in Lisbon as an example. It revolves around the NEAR Protocol, which is the smart contract system used by Mintbase, not Ethereum. “The founders of the music festival want 100% NFT ticketing,” Wend said. This may (one day) include “staking” your tickets, which means you can profit from the tickets.

Some of these functions are still closed in the future, but even at the Lisbon Music Festival (held on October 26), Wend hopes that they can “extract the QR code from the space” so that people can scan the QR code and use NFT Exchange for burritos. This is not hypothetical. In Lisbon, Wend said, “We will make burritos NFT.

NFT community

Remember those Dolce & Gabbana NFTs? Now imagine that you are a lucky person and bought one. This is an almost ridiculously gorgeous piece of jewelry. How do you store it? Maybe you keep the entity in your private vault, or you display it on the top of the throne room of Mykonos Villa, modest and tasteful.

But what about digital NFT? What do you use it for? Or as Burke said, “Where do you use it?” Think about it from the perspective of Dolce & Gabbana. “If you are a high-end luxury brand, it is to control the retail experience.” Burke pointed out that Dolce & Gabbana gave NFT buyers two years to figure out where to render it.

Therefore, Burke predicts a certain environment in which people can gather, chat, and show off their NFT. Maybe it is a form of AR, or it may be virtual reality (VR), or it may be something in the style of Web 3.0, or it may be something completely different. The key is to have a good environment to experience NFT. “What are the network platforms? This will be a big trend,” Burke said.

Shen has a similar idea, but with a different twist. She envisions “a home for the NFT community”, or more accurately, “a social network for NFT owners.” Maybe this network is connected to your Bored Ape wallet, and only verified users with certain NFTs can access it.

Former universe

Maxime Laglasse, head of content at Nonfungible.com, said: “Meta Universe will become one of the future game changers in the NFT field.” In short: Meta Universe can be a place to store and appreciate NFT art. It is the center of the game. , It gives Zuckerberg a new mission in life, maybe it is an evolved version of how we hang out on the Internet.

Virtual land

A wise investor once said: “Land. This is one thing they can’t make more.” The investor is Lex Luthor, and his suggestion may sound correct in the metaverse. Virtual worlds like Decentraland, The Sandbox and Cryptovoxels give their real estate an upper limit, which theoretically means that if demand soars, limited supply will become more valuable.

“This is very promising,” Matty “DCLBlogger” said. He is an influential voice in the NFT community. He is a prophet who tweeted in 2020 (more than a year ago). A widely shared post that outlines 25 future use cases for NFT. This clue seems prescient, and is rightly called the rise of art, collectibles, and games. Matty is also optimistic about virtual land. “Look at Axie Infinity,” he said, “There are a million players,” some of them think, “Maybe it makes sense to own that piece of land.”

Once you start thinking about the idea that people can profit from digital real estate, the possibilities are dizzying. Maybe you own a piece of land, you build a virtual office building, and then you rent the building to virtual meetings. When conference participants want to vent, maybe they want to gamble during cocktail hours, so you rent a casino game and let them win and lose crypto assets. As Matty said, “This is really crazy.”

5

Digital identity

Self Sovereign Identity (SSID) has long been one of the most interesting applications of blockchain technology, and NFT may be the key to open the door. (Why is SSID important? This is my primer from last year.) Laglasse sees Ethereum Name Service (ENS) as a useful example. “Now you can link your Instagram account, your Twitter account, and almost all social media accounts to ENS,” Laglasse said. “Because it is decentralized, you can truly own the name you show to the community.”

Laglasse classifies these as “utility NFTs” because you usually cannot exchange them for money (such as art and collectibles), but they exist to prove that you own something. Another idea similar to this: NFT for college diplomas. For example, this will allow a Vietnamese student to travel to the United States and quickly prove her diploma. Laglasse predicts: “It will happen one day.”

Social media and influence

This is a little hard to imagine. But stick to it. “Think of all the digital value created through social media platforms,” ​​Burke said. He was referring to the elusive and difficult to quantify concept of “online influence.” Currently, Burke believes that the only real way to monetize this influence is through advertising, and influencers can only get a small part of the revenue cake. But what if this impact can be quantified, scored, and captured as an NFT?

Let’s call it “Influence NFT”, it won’t be as simple as rewarding Twitter followers. “This is a form of atomic socialization,” Burke explained, “I can atomize every bit of content, and I can quantify my relationship with the community.” He said that this kind of NFT may consider things like online reputation, Reliability and even the ability to plan and create quality content and other variables. “This is the hardest to explain,” he said with a smile.

Remember Twitter’s early “Klout” scores, one of the algorithms that tried to quantify the social magic of users? Klout never seemed to be popular, it went bankrupt in 2018, but you can see the (arguably evil) appeal of this idea. “In theory, any form of digital value stream can be turned into an asset,” Burke said. He also envisions inserting this NFT into the DeFi ecosystem, for example as collateral for loans.

Shen believes that this concept is a more refined version of credit scoring, but it is for credibility and influence. “In fact, you can have an NFT, which forms part of your identity and reputation,” she said. She uses Rabbithole.gg as an example, where users can earn cryptocurrency, tokens, or NFT by proving that they have certain skills or completing certain tasks (such as registering an ENS name).

Steinwold likes another example: Galaxy.eco aims to use on-chain data to reward people for certain verifiable activities. Maybe if you make 1,000 transactions on Uniswap , you can get the Master Trader badge. Or if you are a long-term holder, you will get Diamond Hands. If you can prove that you have read this article, maybe I should cast an NFT for you.

music

“The entire industry definitely needs some disruption,” Matty said, expecting that music will eventually take off like art and collectibles. Maybe this has already begun. Shawn Mendes, Grimes and Snoop Dogg have all ventured into NFT and discovered new ways to make money and interact with fans through fans. Kings of Leon are not satisfied with simply releasing albums in the form of NFT; they are so passionate that they played NFT in space.

Live Nation wants to do some of the things Top Shot did for the NBA—capture “moments” as collectibles. “We all learned from the NBA’s Top Shot,” CEO Michael Rapino said on the earnings call, adding that he hopes Live Nation will create “we can create and attach to our ongoing ticket festivals and magical moments of special moments.” .”

Or maybe NFT, music, and DeFi can all be combined. “If the music masters can really gather and then subdivide, then you can get income as a bonus for streaming media,” Shen said. Then she proposed another possibility: Imagine if the copyright of each song is captured as NFT, and then you gather the first 40 songs of the month, you split the music stream, and then you can buy the Part of the music stream and get streaming income. “That would be interesting,” she said, “we just haven’t gotten there yet.”

Quickly describe the other four areas:

medical insurance

 “In the healthcare industry, this will have a huge impact,” Laglasse said. He believes that NFTs can be used to protect the confidentiality of health records and enhance drug supply chain tracking.

advertise

Here is a curve ball. “Advertising is not something that people pay attention to,” Matty said. But he asked, “Why don’t websites sell NFTs that give people access to certain media advertising rights?” All of this is working.

physical education

Sorare has gained a foothold in global football matches. It is not difficult to imagine that the NFL and fantasy football industry will become popular.

NFT search

 “Now, NFTs are an interesting but confusing category,” Shen said, adding that they “look a lot like sites before Google appeared in the 90s.” She made sense. Currently there is no clean search function for NFT…. Imagine the Google of NFT. Or a decentralized NFT Google.

Finally, the most extreme scenario:

Digitization of everything

“A lot of people still don’t realize how big an NFT will be,” Steinwold said. “They will be used for anything. All forms of value will be expressed as NFT.” This is a bold statement. I asked him if I heard him wrong. Will all forms of value be represented by NFT?

Why is he so confident?

“We spend most of our waking hours online,” Steinwold explained, and believes that this trend will continue to accelerate in the next 20 or 30 years, and soon “we will have a lot of digital products.” In the future, Steinwold said , If he buys a pair of cool Air Jordans (real objects that can be worn on the feet), he will want its NFT companion. He will want NFT so he can show off it, use it flexibly, and maybe use it in meta-universe or play-to-earn games.

“Maybe it’s not this chair,” he said, pointing to the chair above Zoom and laughing. But he predicts that people will eventually want their wine, baseball cards, rare coins, watches, cars—you can tell—the NFT, “This is the way the world is going.”

Maybe this sounds far-fetched. Just like a year ago, the same was true of mainstream NFT ideas for art and collectibles.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/15-nft-application-cases-that-may-become-mainstream/
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