How NFTs will change the world in 2023
NFTs (non-fungible tokens) have been known more widely since the rise of CryptoKitties in 2017. Since then, we have seen an explosion of NFTs in the form of digital art, music, and even sports memorabilia. NFTs represent a new way of digital ownership and have the potential to revolutionize many industries by creating a new digital economy.
NFTs offer unparalleled opportunities to cultivate communities of loyal fans
Traditional methods of creating communities of loyal fans – such as through television commercials, print advertisements, or celebrity endorsements have long been a marketing mainstay. However, NFTs offer a new way to engage with fans and create loyalty. In order to reach and engage consumers, brands must go beyond one-way communication and create meaningful two-way interactions. Through NFTs, brands can create digital assets that can take many forms, such as digital collectibles, vouchers, or limited edition items.
A well-crafted NFT project can begin to form a community of people interested in these assets and their associated culture. In addition to engaging these fans, brands can use this community to gather feedback and input on new product ideas or marketing campaigns.
Here are some areas we think NFTs will have the biggest impact in the coming years:
Gaming will be the first industry to be disrupted by NFTs. Blockchain games are creating a new economy of game items that are owned by the player. This means players can sell, trade, or even auction off their in-game items as NFTs for real money outside the game. NFTs have the power to provide liquidity value to gamers and create a new secondary market for game items. Access keys to video games is another area where NFTs will play an important part. Holding games not only give monetary value to gamers who can resell games in the secondary market after they have finished playing games, but it can also help game developers and publishers to earn a royalty every time a game is resold and fight piracy.
#2 Financing housing projects
A lot of social good can come from introducing NFTs and by providing a new way to finance much-needed housing developments for people in need. By creating incentives for NFT holders to offer their liquidity, yield-returning NFTs will help fund housing solutions especially in emerging countries. This creates a pipeline of funding that can be used toward housing solutions, especially in emerging countries. Pilot projects focusing on enabling decentralized finance through an innovative lease-to-own model with tenants having access to affordable homes created using capital raised from sales of NFTs. One potential benefit is the ability to expand financial inclusion by making credit more accessible throughout underbanked societies without relying heavily upon formal institutions such as banks.
#3 Supply chains
Imagine if you could track your favorite Nike sneakers from their original source all the way through to when they finally arrived at home. NFTs supported by decentralized identifiers to physical items throughout the process, an entity or manufacturer has proof they are who says so while reducing risk of counterfeit products giving consumers confidence when buying original craftsmanship at retail stores. NFTs allow for this type of transparency in supply chains, which not only increases efficiency but also gives consumers more confidence that what they're buying is genuine.
#4 Real estate
Representing a piece of real estate in NFT form is an ongoing experiment. The future of physical real estate properties is blockchain-based smart contracts that store legal documents signifying ownership and NFTs providing access. People will be able to transfer the ownership of their apartment associated with an NFT in a legally binding way. To get there, blockchain-based smart contracts can store legal documents signifying ownership, and associated NFTs can provide access to those legal documents. Smart contracts are increasingly becoming legally admissible records, with Vermont and Arizona both passing such legislation. This is not very easy to implement, but several benefits of blockchain will pave the way for the market to make it legally compatible.
With NFTs, a project can raise funds by selling digital assets. The funds can be used to finance the project or to support the team behind it. For example, a game development studio could sell in-game items, such as power-ups or unique skins, to players in order to finance the development of their game. Alternatively, a team of developers could sell an NFT that gives the holder the right to vote on certain decisions related to the project. This would give players a say in how the game develops and provides an additional revenue stream for the team.
#6 Sports industry
Imagine how amazing it would be if there was a trustless way to prevent the selling of tickets on shady web2 websites or by people in the streets. NFTs can help with that. They can be used as a way of ticketing, meaning that every single ticket is unique and registered on a blockchain. If a buyer wants to resell their ticket for higher price the issuer would get a part of the resale in a secondary marketplace. This would create a new way of handling ticketing, and it would also help to fight against the black market for tickets. In addition, sports clubs, leagues, and players can all benefit from NFTs. They can use NFTs to sell digital collectibles, experiences, and merchandise directly to fans. NFTs can also be used to create new ways of fan engagement such as voting, polling, and gaming. Moreover, if fans wanted to bet on the outcome a specific sports match, blockchain orcales can easily verify the result and NFTs can be used as a way to pay out the winners. This would create a new decentralized and trustless betting market for sports.
Famous musicians selling their music as NFTs is a great use case. It's a new way for artists to make money and a new way for fans to show their support. For example, an artist could sell an NFT that gives the holder the right to stream their music for a certain period of time or they could sell an NFT that gives the holder the right to download their music. With NFTs, musicians are in the driver's seat to be rest assured that they get paid a fair price for their music. In addition, NFTs can be used as a way to prevent piracy and ensure that artists are getting paid for their work.
NFTs have the potential to revolutionize a number of industries by providing authenticity and ownership. They also have the potential to increase efficiency and reduce costs. In addition, NFTs can be used to create new ways of fan engagement and finance projects. The possibilities are endless, and the potential is huge. In 2023, we will begin to see the mainstream adoption of NFTs and the potential for them to change the world as we know it. Real-world use cases will continue to emerge and the technology will continue to evolve. NFTs are the future!