The most common objection you will hear about NFTs is they aren’t real and therefore have no bearing in the physical world. However, NFTs aren’t just being used in the digital world anymore. In this article, we’ve put together some real-world uses for NFTs that will soon be a part of your daily life.
This article will show how blockchain technology is becoming a viable option for many industries, and we can expect the scope and applications of NFTs to grow in the years to come.
Real Estate
Blockchain real estate - a term that only very few people would have heard a few years ago - is now becoming one of the most popular use cases for NFTs. And no, we aren't talking about virtual lands sold in cryptocurrency-based games.
Earlier this year, a Florida home was auctioned as an NFT and fetched a good gracious $650,000 worth of Ether. Propy, the blockchain real estate company behind the initiative, claims to have consummated the very first minting of a real house into an NFT and sold it for profit.
The buyer retains the home's property rights, but the digital token stored on Ethereum's blockchain network represents the deed and can be freely traded like any other NFT.
NFT-Based Loyalty Programs
To increase customer loyalty, some companies now use NFTs to offer rewards that can be collected and traded. It's not just about modernizing the loyalty program - it's about integrating a brand into the metaverse.
Arguably the most prominent example of this is NFL's partnership with Ticketmaster. The league offers virtual commemorative tickets as NFTs. The idea is to create a new way for fans to interact with their NFL teams. For the league, it's also a way to tap into the $5 billion digital collectibles market.
NFTs for Physical Goods
Not everything needs to be digital to be an NFT. Last year, Adidas launched 30,000 NFTs called "Adidas Originals." Buying one of those NFTs means getting exclusive access to The Sandbox. More interestingly, the NFT also came with the perk of accessing exclusive general physical merchandise from the brand. This concept is one of the first to initiate the crossover of the physical and digital worlds.
It's not just big brands that are using NFTs for physical goods. Several small businesses have also used NFTs to sell their wares more creatively. For instance, some streetwear brands sell clothes with special patterns that can only be unlocked by holding a certain number of NFTs.
Proof of Authenticity
With an NFT, you get an extra guarantee that a product is authentic. That's because every NFT is unique and stored on the blockchain. This use case is particularly relevant for luxury goods and collectibles, often counterfeited.
The blockchain serves as the added layer of security here. It's where information about the product is stored, including details about its rarity. Unlike a physical product, which can be duplicated, an NFT remains unique. In other words, a physical product's authenticity is proven and verifiable if it's minted as an NFT.
What if you set your sights on a rare product, but everyone seems to have a replica or a counterfeit? Well, you won't have to face that problem if that physical product has an NFT that contains information about its authenticity.
This is a huge selling point, especially for luxury brands. Some companies have started minting NFTs of their products even before they release them on the market.
Medical Records
In the medical industry, one of the most promising applications of NFTs is in the area of medical records. The idea is to use NFTs to store patient data on the blockchain. This would make it possible to share medical records securely and efficiently.
Medical data, at least, for the most part, is already digitized. The problem is only physicians have control over it. It means that other prospective stakeholders, i.e., medical research companies, have difficulty accessing it. With NFTs, though, that could change.
While the last thing patients want is their medical records to be passed around, NFTs offer a unique alternative. A few start-ups have taken the initiative by offering to convert medical records into NFTs so that the true owners (patients) can monetize the access to their data.
It's somehow a noble way to take advantage of NFTs since many people out there may hold answers to some of the world's most pressing medical questions.
Academic Credentials
The way we store and share academic credentials is ripe for disruption. The existing system is slow, inefficient, and often confusing. It's not just about making the process digital - it's about making it more secure and transparent.
NFTs can play a big role in this area. That's because they can be used to store academic credentials on the blockchain. This would make it possible to verify the authenticity of a credential and track its progress over time.
Duke University started the transition by offering educational credentials as NFTs to its Master of Engineering in Financial Technology degree. It's a significant step in an otherwise surprising direction for the academe. A prestigious university taking the initial step only means that other institutions will eventually follow.
Event Tickets
The events industry was one of the first to be disrupted by the pandemic. With mass gatherings no longer possible, online events have shifted focus. Even so, there's still a big market for physical event tickets.
NFTs make event tickets more secure and prevent fraud. That's because every ticket is stored on the blockchain and can be verified for authenticity.
Aside from that, NFTs also offer a way to sell tickets more efficiently. For example, you can sell tickets directly to fans without going through a third-party platform. You get to sell your tickets on secondary markets, too.
Supply Chains
Brands and companies that make money by selling products are always hindered by issues regarding the supply chain, i.e., the process of getting the product from the supplier to the customer.
NFTs carry with them an undeniable potential in streamlining and securing the tracking and managing of products. That's because every product can be given a unique identifier in the form of an NFT. This would make it possible to track the product's progress as it moves through the supply chain.
The blockchain plays a critical role in making this happen. It creates an immutable record of every transaction involving the product. In other words, it would be impossible to tamper with the data.
This is a game-changer for the supply chain industry since it would make it possible to track products in real-time. It would also make it easier to identify issues and solve them quickly.
These are only some interesting things people are doing with NFTs in the real world. It's becoming clearer that the prospect of NFTs goes beyond the digital world. With that said, it won't be surprising if we see more real-world applications in the future.
Supply Last Thoughts
Most people know NFTs as art collectables but they are increasingly being used for so many more real-world applications that go beyond the digital. Soon, we are going to see wider adoption of NFTs. In fact, they NFTs and blockchain technology will be as common as email is today. They will fundamentally change how we interact, store, and record data. The NFT revolution is only at the very beginning of the adoption curve, and in the next five or ten years, it is likely that NFTs will have even more applications than we can even imagine.
