Six Ways NFTs are used in Industry
1. Using NFTs in the Supply Chain
NFT use cases provide supply chain operators with a unique and traceable way to demonstrate provenance and prevent counterfeit products from entering the market. By assigning a unique digital identifier to each item in the supply chain, the item can be tracked and verified at every stage from production to sale. This provides transparency and accountability that is not possible with traditional supply chain management methods.
One of the most well-known examples of this is in the luxury goods market, where companies like Prada and LVMH have partnered up to launch a blockchain platform called Aura. When consumers buy a high-end watch, handbag, or piece of jewelry, they’ll be given a corresponding one-of-a-kind “digital twin” stored on the blockchain. As the product changes hands over time, each new owner will be able to see its provenance and verify that it is authentic.
Thanks to the high sums at stake, fraud has become commonplace in the fine wine industry. To combat this, NFTs are now being used to trace the provenance of these wines. This allows buyers to verify that the wine they are buying is genuine and enable producers to track their products through the supply chain. This is a welcome development, as it will help to ensure that the fine wine market remains fair and transparent.
2. Using NFTs in Real Estate
NFTs are used extensively to trade virtual real estate in VR games such as Decentraland. However, they are now also being used to represent the physical real estate. Recently, TechCrunch founder Michael Arrington sold his NFT-backed Kyiv apartment for 36 ETH (a little over $70,000 at current prices). This is just one example of how NFTs are being used to represent physical assets. With the ability to represent any asset, whether virtual or physical, NFTs are poised to revolutionize the way we trade and ownership.
Fractionalized ownership is also a more intriguing NFT token use case when applied to real estate trading. For instance, younger people could invest in a share of a property to generate income that can ultimately be used to fund their house purchases.
3. Using NFTs in Sales
The blockchain is the perfect tool for peer-to-peer sales, allowing for quick and secure ownership transfers between buyer and seller. Smart contracts mean there is no need for lawyers or notaries, which can save time and money. This makes the blockchain an ideal platform for sales, from small personal transactions to large business deals.
4. Using NFTs in Gaming
In-game assets make up a sizable chunk of the gaming market, projected to reach $300 billion in the next four years. Even though gamers are spending lots of money on these assets, it can be tricky to own them. If the game company goes out of business, the assets may be lost forever, or they may be bought up by another company that may not support the same game. There have been cases of gamers spending thousands of dollars on in-game assets, only to have the game shut down and those assets become worthless.
NFTs offer many advantages for gamers who want to own in-game assets. They can keep their purchases in their private wallets and take them with them if they switch games. Plus, NFTs can add value to in-game assets and open up new possibilities for game creators. For example, NFTs could be used to create unique in-game items that can be traded or sold on secondary markets. This could create a whole new economy within games that benefit both game developers and gamers.
The Six Dragons, a blockchain-based RPG game, was the first of its kind to become a licensed Playstation partner last year. This accreditation allows it to release a version for the PS5, which is anticipated in 2021. The game has been well-received by critics and players alike, and its success is due primarily to its innovative use of blockchain technology.
5. Using NFTs in Music
The music industry is still in the early stages of exploring the potential uses for NFTs, but there are already many opportunities for them. Currently, their utility is similar to other entertainment segments, with artists such as Eminem or the Kings of Leon releasing works as NFTs. However, several other potential uses for NFTs in the music industry have yet to be explored. For example, NFTs could be used to create unique, one-of-a-kind experiences for fans or to give fans a more direct and personal connection to their favorite artists. Additionally, NFTs could also be used to help fund new projects or to distribute royalties more efficiently.
However, NFTs offer a lot more to an industry struggling with copyright issues. With NFTs, musicians don’t have to worry about copying or pirating their music, which has been a major problem since it became digitized. Additionally, the rights to royalties can be programmed into the NFTs so that artists can be sure they are getting paid for their work. This could provide a much-needed boost to the music industry, struggling in recent years.
6. Using NFTs in Agriculture
NFTs can help agricultural companies keep track of their field operations, optimize their processes, and improve crop yields. The data gathered from NFTs can be used to make better decisions about running the company and what changes need to be made. “Smart fields” are large agricultural landscapes that hold physical objects, such as pipes, sensors, and machinery. These “smart fields” allow agricultural companies to collect data, processes, and feedback from field operations. The data gathered can better manage and optimize field operations, improve crop production, and increase crop yields. NFTs can also help agricultural companies communicate with their customers and give feedback about their products.