Are you ready to embrace the future of Non-Fungible Tokens (NFTs)? The past year hasn’t exactly been a dream run. It’s been a wild ride in 2021, with NFT already revolutionizing digital ownership and sparking the imagination of tech innovators around the globe. But the crypto bear market has matured the NFT space, shifting focus from funny (and sometimes cringy) PFPs to real-world use cases of NFT.
With mainstream adoption on the horizon, we do not doubt that new use cases of NFT technology will pop up all over by 2023. So if you want an early peek at what might be possible with NFTs, read on – our Top 10 predictions for NFT use cases by 2023 are sure to spark your creative juices!
1. Ticketing & proof of attendance
NFT ticketing is starting to get much-deserved attention from ticket issuers and recipients. NFT ticketing allows for a unique, blockchain-based digital asset to be stored on a ledger for easy access.
The Tribeca Film Festival in New York recently announced that it would give exclusive VIP passes in NFTs!
This way, ticket holders can only enter an event without worry of counterfeiting. Still, ticket issuers can also keep detailed records of attendance numbers with the added element of NFT benefits.
NFT benefits may include sending out notices directly to ticket holders, hosting giveaways exclusive to NFT holders, creating token-gated websites or services, and more!
2. Membership passes
Brands and programs are rapidly adopting NFTs to unlock incentives and rewards for NFT holders. One example is the Bored Ape Yacht Club (BAYC), which gives NFT owners access to exclusive merch drops, music festivals, and new NFT releases. Other NFT membership initiatives include LinksDAO, LoudPunx, and Flyfish Club. These projects use “token-gating” technology, which uses blockchain technology to guard access to exclusive perks, such as Discord servers, in-person or virtual events, and more.
3. Soulbound tokens
Soulbound Tokens (SBTs) are NFTs specifically designed to be non-transferable and ideal for managing permanent records. This means they can replace paper documents which may easily be lost or damaged over time. This creates a secure, verified record that remains on the blockchain.
Initially proposed by Ethereum Co-Founder Vitalik Buterin, SBTs can be used for landmark achievements in life; medical records, academic results, or even criminal histories can all be preserved as an NFT with immutable ownership.
4. Phygital goods
Phygital is a portmanteau of physical and digital. The NFT space experienced an exciting evolution in 2022 with the emergence of phygital goods.
This concept blurred the physical and digital worlds, enabling Web3 creators to turn their physical creations into NFTs and NFTs into physical objects.
Phygital goods were prevalent across numerous industries, from toys, collectibles, and sculptures to traditional works like paintings.
However, NFT-powered wearable items have become particularly popular.
Nike has pioneered the NFT sneaker space by producing phygital products like RTFKT sneakers. RTFKT is about “Avatars, next Gen Sneakers and Collectibles for the Metaverse.”
9dcc and RTFKT have successfully introduced NFT-driven shoes, shirts, and other fashionable pieces.
5. Artificial intelligence
Like it or not, artificial intelligence is here to stay. From the proliferation of tools like ChatGPT across practically every business to AI-generated art is a popular and divisive subject among online groups, the AI boom we’re currently seeing seems comparable to, if not larger than, the original NFT boom of 2021.
NFTs can be used to mint and sell art that is generated by AI algorithms. This allows artists to monetize their AI models and allows collectors to own one-of-a-kind digital art.
In the gaming business, NFTs can represent in-game objects such as guns, armour, and characters. These objects may be purchased, sold, and exchanged on blockchain markets, giving game creators a new revenue source.
NFTs have revolutionized the way musicians can make money for their work. We are not just talking about Sound.xyz music NFT secondary sales crossing $5 million.
NFTs allow artists to tokenize their music, ensuring royalties go to the artist and those who collaborated on the track. This form of copyright protection has attracted big names in music, such as John Legend, Grimes and Kings of Leon, who have used NFTs to monetize albums, art, music and other digital audiovisual merchandise.
NFTs level the playing field for artists by offering a new way to monetize their work and bypass lopsided royalty agreements or streaming platforms that lack money-making potential.
Josh Katz, the CEO and founder of NFT marketplace YellowHeart, emphasized this as he referred to NFTs as a shift away from the “90/10 rule.” He noted that while traditionally, the artist takes home 10% of the revenue they generate rest goes to the intermediaries. However, with the blockchain, NFTs can take away 90%.
NFTs are thus a powerful tool in helping artists claim their fair share of payouts within an industry that has so long put them at a disadvantage.
7. Virtual Real Estate
Virtual real estate, in the form of NFTs, is one of the metaverse’s most essential and profitable components. Available on virtual worlds of Decentraland, The Sandbox, and Roblox, land in these virtual worlds is limited, much as in the real world. But, instead of cash, they are traded using NFTs.
8. Supply Chain
NFTs can be used to track and verify the authenticity of products as they move through the supply chain. Each NFT would be unique and linked to a specific product, providing a tamper-proof record of its origin, movement and ownership.
NFTs can be used to provide transparency and traceability throughout the supply chain. By linking NFTs to products, suppliers, and manufacturers, consumers and businesses can see the entire journey of a product from the point of origin to the point of consumption.
NFTs can represent certifications and prove the authenticity of products, for example, organic products, fair-trade, and sustainable products.
NFTs in apparel have gathered appeal not just from collectors but also as statement pieces that avatars may wear when they mingle with friends or attend a concert or conference in the virtual world.
Major corporations have already jumped on board.
Gucci allegedly sold an NFT bag for more than $4,000 on Roblox, making it more costly than the actual bag. Last year, Dolce & Gabbana sold a nine-piece collection of NFTs for a whopping $5.7 million, each coupled with tangible apparel pieces. Forever 21 created a virtual storefront in Decentraland earlier this year, offering NFT fashion goods inspired by pieces accessible in its physical stores and website.
10. Web3 identification
NFTs (non-fungible tokens) are a great example of the power of blockchain technology and Web3 to provide complete control over one’s online identity and ownership of digital content.
An example where NFTs are used as identities is in AdLunam – the world’s first Engage-to-Earn Proof-of-Attention IDO platform.
AdLunam is revolutionizing the Attention Economy. By introducing Proof of Attention and connecting it with an NFT (Non-fungible tokens) investor profile, AdLunam ensures that tokens and investors have a win-win situation.
AdLunam’s NFT integration offers investors exclusive airdrops, allocation, and community rewards for participating on their IDO platform. It allows token creators to gain the upfront attention often needed in the early stages of token circulation.
All in all, the potential use cases of NFTs in 2023 appear limitless. With each new function or application, NFTs could soon become irreplaceable components of our lives.
The question then becomes: which of these top 10 possible features are you most excited about?
Whatever you choose to pursue, we look forward to seeing how NFTs shape the world around us in 2023.
About the Author
Amelia Gomez is a creative writer, marketer, and entrepreneur working for Adlunam. She studied creative writing in college and is a staunch supporter of the creative writing process. Writes crypto-based projects, such as Ido Launchpad, Bitcoin, Etsy. In particular, she enjoys writing, laughing with friends and sipping sweet tea.