Most people think that NFTs are pictures of aliens, apes, cats and dogs. The real power of NFTs is the value of being able to validate ownership.
Non-Fungible tokens (NFTs), these are tokens that possess a unique and individual value.
An NFT is a technology that creates a transparent ledger that documents the actual
ownership of a digital asset and how it navigates through the world. They are designed to be
interoperable across different platforms so that your digital assets can be portable or
tradeable.
Examples of NFTs:
avatars, digital artwork, a video game character, music, an essay, a
digital collectible, music videos, digital tickets, digital land etc.
Use cases of NFTs
Digital Identity in social media: As our society becomes more digital, people will want to express
who they are through digital items. People spending time in the metaverse will care a lot about the representation of their identity. Through digital outfits,interior decoration of their virtual spaces and their avatar profiles.
NFTs in gaming: In gaming NFTs allow digital items to be tokenized and transferred.
People are able to buy digital avatars, abilities, clothing, digital tools, weapons and cars that
they can move around from game to game. Owners of these items will also be able to earn
money through lending of game items or rental of digital property.
Ticketing industry: Online tickets can now be verifiable as NFTs, it makes it easier to
verify the authenticity of a ticket and to transfer ownership securely and transparently, or
even have the option of non-transferability.
Re-sale and Royalties for creators: When an artist or a musician is creating an NFT they
can build into the code a method of pushing the resale proceeds back to the owner. That way
the royalties kick in with each resale if it is factored into the smart contract.
Verification: Verifying documentation through NFTs such as diplomas, land, medical
histories, academic credentials and passports is in development and will be the Alpha of what NFTs are intended to be.
NFTs will be valuable in the virtual reality world as they will be used to transfer digital objects through digital realms and as digital identity and verification in the digital space!