NFTs have been a topic of much discussion over the last two years, with their value reaching $23 billion in 2021 alone, marking a growth of 20,000% year over year. Although NFTs have been associated with speculation and scams, they have demonstrated use cases beyond that. Initially created for gaming, NFTs now represent ownership of property, digital representation of ownership, collectible items, tickets for events, and more. They are becoming so advanced that AI and machine learning algorithms are starting to create their own NFTs based on human sketches.
One of the most significant advantages of NFT gaming is that entire games are created within metaverses, where all assets of an avatar are NFTs. This allows people to bring their avatars and in-game items to different games and metaverses, increasing mass adoption. It is especially important as the blockchain industry develops and interoperability occurs.
When it comes to NFTs as art, many people think an NFT is nothing more than a JPEG file that anyone can look at, but it is far more than that. NFTs provide provenance from the moment one is minted. NFTs also allows for virtual experiences, having visual and audio creations that were never able to be made or displayed before. People can “go inside” their NFT using virtual reality headsets and walk around inside the NFT. This kind of immersive experience is not possible with a piece of art or a JPEG.
NFTs can represent ownership, especially fractionalized ownership in real-world things like real estate. People can own an NFT that entitles them to receive a portion of rent and expenses tenants must pay each month. NFTs are also being used to track luxury items and brands to prevent counterfeits. These very same brands can buy land within different metaverses and create galleries and displays, allowing them to showcase their latest pieces digitally on an international scale. Celebrities are also taking to NFTs as collectors and turning themselves into NFTs.
NFTs have even further use cases that are being discovered and developed regularly. The blockchain industry has allowed NFTs to become part of this massive ecosystem, and the level of adoption we will see for years to come as development continues. There are now games running on a blockchain using Unreal Engine 4 and 5, and the detail is as incredible as a traditional game. Some of these games are so detailed that people can purchase plots and estates of land and even own the mineral and land rights to the plots, giving them passive income as their virtual property rises in value due to natural resources.
In conclusion, NFTs are here to stay and will provide future value for those who understand just how unique and advanced an NFT is versus a simple JPEG. NFTs have proven to be a way to monetize brands, and they offer a range of possibilities in various industries, including gaming, supply chain, events and venues, art, and metaverse projects. As technology advances and development continues, NFTs will continue to demonstrate their real-world use cases, generating more interest in NFTs for the public.
Marine Corps Veteran-turned-national-tv-personality Eric Mitchell is a world leading expert in sports media, regularly appearing on the world’s largest outlets from BBC, MSNBC, Fox News, Bloomberg, CNN and more. His signature blend of snark and industry expertise landed him columns at none other than RollingStone, GritDaily, PopWrapped, Disrupt — and most recently — Editor in Chief at NFT Today Magazine. When he’s not making media appearances or running his empire at LifeFlip Media, he can be found entertaining his thousands of loyal followers on social media through his authentic filter-free content.
