NFTs have come a long way from what they once were. They were once tagged as mere images of apes and gorillas with no real value. In other words, NFTs were considered to be overpriced JPEGs. Today, this notion is fast changing and more businesses are coming to light of their real importance. The rapid change in conception and value has, so far, stemmed from the innate importance that NFTs hold – a tool to permanently represent value on an immutable network.
- NFTs offer a means to represent value on the blockchain. NFT provides a way to claim ownership of rare and unique items.
- There is a growing trend of NFT adoption across industries and sectors around the world.
- Some of the most notable NFT use cases have emerged in gaming, fashion, digital art, sports, and real estate. Other sectors have also started exploring NFT use cases.
NFT as a Representation of Value
The initial conception of NFTs largely revolved around ‘worthless overpriced images with no real value’. However, this is no longer the case. NFTs create a unique way to represent value on a blockchain network. This value could be anything that is considered useful, unique, and rare. What further makes NFT appealing is that they cannot be replaced with a replica. This is because each NFT has its own unique value, attributes, and composition. In other words, no two NFTs are exactly the same.
Business adoption of NFTs stems from this realization. Thus, NFT adoption is set to grow over the next decade as more sectors and businesses find innovative ways to integrate them into business activities.
NFT in Digital Art
The art and collection industry is one of the earliest adopters of NFTs. The reason for this is not far-fetched. Art is expressed through painting and drawings and this theme perfectly fits into what NFTs represent.
Digital art, therefore, finds a perfect home in NFTs and vice versa. Unique works of art could be minted as NFTs and sold to collectors anywhere in the world. Additionally, digital artists can lay claim to their art by proving authenticity through the information encoded in the metadata of their NFT.
Digital art as NFT has been one of the major spotlights in the evolution of NFTs. One-of-One sales from notable artists such as Beeple and PAK have made news about how lucrative NFT art could be. Some notable sales in this category include PAK’s “The Merge” ($91.8M), and Beeple’s “Everday: The First 5000 days” ($69.3M).
Similarly, there has been the emergence of the NFT art collection. Usually, NFT collections have thousands of look-alike art that are distinguished by their attributes and traits. This category of art has also been in the spotlight in the past few years. Some well-known collections in this category include Cryptopunks, Bored Ape Yacht Club, and Mutant Ape Yacht Club, among others.
NFT in Gaming
Traditional gaming is yet another industry that is gravitating towards NFT adoption. Typically, in-game assets such as characters, lands, tools, and other resources, were never owned by game players. Today, this notion of centralization is changing with the introduction of NFT into gaming.
It is now possible for players to own in-game assets, claim ownership, and sell these assets as they deem fit. NFTs have also brought about a new gaming economy known as Play-to-Earn. Play-to-earn enables players to earn rewards while playing games. This reward could be in the form of NFT assets or tokens. They can then convert rewards to physical cash by selling them off on dedicated marketplaces.
We have created an entire piece on NFT adoption in the gaming industry. Use the link to read about how NFT is changing the gaming industry.
NFT in Fashion and Luxury
The fashion industry made a wave in 2022. This is due to a report from Dune Analytics that reveals that fashion brands made the most money from NFT sales. The report showed top fashion brands such as Dolce and Gabbana, Nike, Tiffany, Gucci, and Adidas made around $260 million from NFT sales alone. The Dune Analytics report is an indication of how far NFTs have gained popularity among fashion brands.
Similarly, luxury goods brands are fast adopting NFTs. This is especially true of brands in the jewelry and auto industries. Popular car brands such as Lamborghini, Porsche, Mercedez-Benz, and many more, have jumped on this train.
The emergence of the metaverse is another reason for the NFT boom in the fashion and luxury goods industry. Virtual fashion, virtual galleries, and even virtual car spare parts are fast emerging into something big as the metaverse continues to emerge.
Real Estate and NFT
The main benefit of NFT in real estate revolves around asset ownership – both digitally and physically. NFTs have made it possible for people to claim ownership of virtual lands and physical properties.
The emergence of the metaverse has led to a new form of economy where immersion has become a key component of human experience. In the metaverse, businesses are expected to acquire virtual lands and other kinds of assets that enable them to establish their presence in the virtual world. Platforms like decentraland and vaulthill are known to be leaders in the area of virtual lands.
In a similar vein, some physical real estate companies are beginning to deploy NFT for land and property sales. Thus, buyers are given digital proof of ownership (NFT), which represents a transfer of assets that exist in the real world. The value of the corresponding NFT is directly tied to the physical asset it represents.
This move is important because the NFT serves as a permanent representation of the physical asset, and this proof cannot be manipulated or altered.
NFT in Sports
The trend of NFT adoption in sports is quite encouraging. From football to basketball, and rugby, NFT adoption in sports keeps growing at an exponential pace.
The NBAtopshot is perhaps the most well-known sports NFT platform around. The platform allows collectors to buy NFT in the form of images and video clips. This way, collectors can own a piece of NBA history.
In football, we have already seen some top football personalities embrace NFT. One such was Cristiano Ronaldo, who launched his NFT collection on Binance in December 2022. In a similar vein, top football clubs such as Paris Saint Germain, Barcelona, Liverpool, and Manchester City, have made their NFT debuts.
Other Sectors Adopting NFT
While NFTs have become pronounced in the industries mentioned above, other sectors have also started exploring their usage. Some of these sectors include restaurants and fast food, supply chains, drinks, event ticketing, and eCommerce.
Institutional and brand adoption is bound to be the catalyst for NFT adoption over the next decade. The growth of the NFT space will change how industries operate and ultimately introduce new models of marketing and value proposition.