Top NFT Use Cases in 2022
NFT is short for Non Fungible Token. It represents a unique item like a deed or title, albeit, digitally. You can make copies of them but there is only one original and that makes it valuable. An original Mona Lisa painting can fetch close to $1 billion today which is more than the net worth of few islands!! It may seem illogical but that’s down to free market forces like supply and demand. NFTs can represent any type of physical or digital ownership. Each NFT has a unique ID and metadata. All relevant information of an item is stored on a distributed public ledger like blockchain for instance. The process of creating an NFT is called minting or tokenization for authenticity. Minting process over time has become very easy that you and I can do so in a few minutes today. Once ‘minted’, NFTs can be traded through cryptocurrency marketplaces or exchanges. Often such marketplaces exist within online metaverses which is a digital version of our real world that includes games, lands, shopping complexes etc.
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What are NFTs and How Do
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A handful of problems in today’s society are left unattended by mighty entrepreneurship which are mostly a private venture. So they need to look for themselves before having any altruistic intentions. NFTs are gradually appearing as the preferred mode to gather a community and raise funds for noble causes. NFTs for causes is an alternative to donations because it introduces transparency and humility like never before. A Forbes article explains how some NFTs create social Digitalvalue. Charity Art features NFT projects for charity, including ocean conservation for Causes
Top NFT Use cases 2022 1. NFTs
4 Think about all those stamp collections in your childhood. Many of us make it a point to keep collecting rare items passionately but some turn them into a real time investment. I mean if there is a market for it, why not? Experienced and risk taking investors keep an eye on valuable collectibles so they can flip for profit at the right time. I am not going to exaggerate and tell you there are billions sitting on these marketplaces and showing off their collectibles. But there are quite a bit of them online as you can imagine. Whether or not it is liquid enough is in our hands considering this is a very young industry. Check how Marvel is leveraging the NFT industry. First-Ever Marvel Digital Comic Collectibles arrive on collectible marketplace, VeVe 2. Collectible
3. Private MembershipClub
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People with NFTs get exclusive access to various clubs that have limited membership. Not too different from our Rotary and Lion clubs! Some clubs work for a cause while others cater to fashion, movies among other industries. Such clubs often incorporate well articulated financial plans or tokenomics like reserving a certain % of their NFT revenue for a social cause, NFT holders, development work like scaling up the club to a metaverse etc. One of the ideas is to benefit from NFT price appreciation if and when the club takes off creating more demand. NFT holders (or club members) also get access to multiple airdrops, which is usually a free distribution of new tokens. Bored Ape Yacht club is one of the most successful NFT clubs.
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4. PFP or Profile Picture
People are spending most of their time online ever since the start of the pandemic. Yes, shopping for fancy profile pictures is giving a competition to shopping for fancy apparel wear!! And do you see some of the animated images below that has hats or eyewear? As you can imagine, there are creators focusing on creating an animated image(s). But they are also creators who focus on creating in-game merch that could be traded with the former.