11 Practical Applications of NFTs

NFT’s, or Non-Fungible Tokens, are the new generation of digital assets. They defy classification as either a security, commodity, or currency because they can hold such a diverse range of values and traits.

In this post we will explore seven ways you can make money from NFT’s and break down what it means for each type of potential investor.

NFT’s could be one of the single most important uses of the blockchain and could shape the future of our  world. Not understanding NFT’s will result in lost opportunity.

Here’s just eleven ways NFT’s are being used right now in the real world.

#1 Real estate

Perhaps the biggest source of value to NFT’s is real estate. There are examples of this already, such as in the form of tokenized homes on the Ethereum-based [Meg Whitman’s] Trusted Home Network. In June 2018, two separate projects were announced that would use NFT’s for real estate purposes.

Colony announced that they would be launching four projects on the blockchain to tokenize real estate. One of these projects was the tokenizing of a 32-unit apartment complex in Brooklyn, New York. The second project announced was the tokenization of an empty resort in Playa del Carmen, Mexico. This resort was in complete disrepair and had been seized by the Mexican government.

The third project will tokenize a hospital in Illinois, as well as a hotel and several residential buildings in New York. The fourth project is the tokenization of an online real estate market with over 250 listed properties. It has been pointed out that when a property is tokenized, there is no real estate agent required. This will allow for much lower transaction costs and very low risk.

#2 Fresh food

Another form of real estate is farming and food processing facilities. In early 2019, two blockchain projects announced that they would be tokenizing agricultural land. The first project was the tokenization of an organic farm in Florida. The second project was the tokenization of a farm in Vermont, which was founded by its namesake, Laurence D Gulley.

Various states and crops are being considered for tokenization. However, there is one certainty in this case; it will be another example of food security and spending power for the farmers.

#3 Your name

NFT’s have been introduced in order to increase the value of one’s name. It can be done by way of a “namecoin” or by having a blockchain-based variable-name system where the length and complexity of the name can be adjusted. The ease at which NFT’s can be created led to the introduction of a program called NameDex, which provided users with the ability to buy and sell their names online. As an example, a user could sell their name online with an added value in Bitcoin if they wanted $100 more for their name or $50 less for their name.

#4 Cryptocurrencies

The most common form of cryptocurrency is, of course, Bitcoin. The overall market cap of all cryptocurrencies is over $180 billion and continues to grow. As a result, people have been paying close attention to this industry and its future value. For some reason, however, the most common way to capitalize on a cryptocurrency’s value is by purchasing real estate with Bitcoin.

In an era where real estate transactions are done anonymously with few or no records kept, cryptocurrencies could be anonymous too.

#5 Other currencies

As much as cryptocurrencies were touted to be a new form of currency, NFT’s got there first. In the world of cryptocurrencies, there are other currencies that have been introduced to suit their specific needs. Bitcoin Cash and Ethereum Classic are two examples of this.

#6 Virtual goods

Virtual goods are an industry that has constantly been growing over the past few years. Cryptocurrencies have played a huge role in this growth, as they allow for a way to buy and sell virtual goods.

The best example of this is the use of cryptocurrencies in video games. Players can use their cryptocurrency to buy new items, weapons, or skills that might help them advance further in the game. It allows them to pay for these items without having to pay real money or use old-fashioned bartering skills.

There is one very important detail though; some players are also using cryptocurrencies as a form of payment for copyrighted content. The most famous example of this came from the movie “The DAO”. In this movie, the villain had taken control of a platform that allowed players to invest in video games and make money for buying items in the game. This made many video game companies angry, because they thought their intellectual property was being stolen.

#7 Cryptographic tokens

A proprietary cryptographic token is a security offered to the users. It can also be traded and used as an investment. The usual procedure for this type of token is that a cryptocurrency company will select the NFT-focused platform to help them create their digital assets.

#8 Securities

One of the biggest opportunities with the blockchain is to tokenize cryptocurrencies and issue them as securities. The SEC has already approved three such companies – REcoin, ICONOMI, and Polymath. What people are unsure about is whether or not it will be possible to have a security token that is compliant with federal regulations. If this proves too challenging, there are many other places where these security tokens can be issued such as in Europe, or in countries like Gibraltar and Malta.

#9 Crypto collectibles

Crypto-collectibles are a type of digital asset that can be traded and sold on the blockchain on the Ethereum network. These crypto-collectibles operate like baseball cards, but instead of a person’s name printed on it, it is a crypto-token. There are many different kinds of crypto-collectibles including CryptoKitties. There is also one called CryptoPunks, and it is designed like Dragon Ball Z characters. It has a total value of $56 million.

What’s even more interesting about CryptoPunks is that there are also a total of 100,000 of them. The uniqueness of crypto-collectibles is that they are hard to find. And if you do find one, it will be valued as much as the collectible itself.

#10 Cryptocurrencies without “crypto” in it

Cryptocurrencies have been used in the real world for a long time. People have been able to use them to buy things through online shopping platforms. For example, games and online content are available for the users who hold cryptocurrencies. They can also be used in brick and mortar stores as well, in addition to their role on the internet.

#11 E-commerce

E-commerce has been around for a very long time. It all started many years ago with people mailing goods to one another. Now, there are so many options online, with different currencies being used in different countries and on different blockchains. There are even new cryptocurrencies that enable people to make purchases over the internet through algorithms. This is a very exciting development because it enables you to make a purchase without having to take out your credit card, and then paying into your bank account after the fact.

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