Let’s review the NFT market, which grew more than 200 times in 2021. The total value of NFT transactions was only $82.5 million in 2020, but exceeded $17 billion by 2021.

NBA Top Shots alone had hundreds of millions of dollars in sales last year, not to mention the combined NFT value of BAYC and crypto-punk at over $3 billion. Last year, Beeple sold a digital artwork as an NFT through ChristiesInc for $69 million, making Beeple the third most valuable living artist in history for his work.

Most people just know that these digital art NFTs are famous, but it’s hard to understand why they are so valuable. In fact, NFT can be used in many instances and applications, so in this article, let’s explore how NFT can be used in instances.

NFTs (Non-Fungible Tokens) are completely unique tokens (no two NFTs are the same), so they are best suited to represent ownership of unique assets. Combine this with other valuable attributes such as transparency, verifiability, composability, etc., and you get a technology that changes the way people live. Such uniqueness is perfect for representing real-world assets, and not only that, but NFT has the ability to tokenize them. Why tokenize assets? Because it allows for better liquidity, composability (derivatives), and a much more efficient way to capitalize assets, turning them from intangible to tangible …… So what are some applications of NFT outside of the digital arts? I have broken them down into 9 main categories.

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Identity Authentication

About 30% of citizens have experienced identity theft, which is not surprising since it only requires your 18-digit ID number. Your identity is unique and a digital tokenized identity will make your identity easy to verify and difficult to steal or forge. Identity Class NFT allows you to.

KYC without providing detailed information

Make your identity easy to bind (e.g. various proofs and certificates)

Enables assets to be tied to your identity for security

Unlock new DeFi use cases such as unsecured borrowing, credit scoring ……

Intellectual Property Ownership

You may have heard that Jack sold his first tweet as an NFT for $2.9 million.
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While this may sound strange, NFTs are indeed a great way to represent IP. an NFT patent is easily transferable, has clear ownership, it is also easily verifiable, and even allows other smart contracts to be inserted to earn royalties.

Real Estate Tokens

Every piece of real estate is unique and NFT would be a great way to represent them. If you have a token representing the property, then you have digital proof of ownership in your wallet, which not only eliminates red tape, but also allows you to sub your property directly into the DeFi world, and if you need a loan, you will be able to get a mortgage/refinance in seconds instead of waiting months.

Membership Clubs Member Clubs

NFTs are a great membership card because they can.

Digital

Are easy to verify

Have a record of ownership

Highly combinable

Ticketing Tickets

With NFT tickets, organizers can easily authenticate through on-chain records, people have a secure resale channel, and organizers can monitor resales and charge a fee for secondary resales. For example, artists can airdrop their new album to everyone who attended the concert, because the tickets are tied to individuals and are searchable and verifiable.

Music

As we all know, it is the record companies, agencies, service providers, etc. behind the artists that make a lot of money from streaming, and it is the revenue that remains for the artists.

Like other art forms, music can benefit from NFTs, for example, limited edition music or albums can be sold to the public through NFTs without the pressure of publishers or agents, and artists can raise money from fans through NFTs in exchange for a portion of their royalties. But disrupting such an industry is very difficult, and many people are trying. I don’t know which method will work, but for now, NFT is a guiding light.

In-Game Collectibles In-Game Collectibles

NFT allows you to economize your in-game efforts instead of wasting them for nothing. When you acquire a legendary item in the game, NFT can give it value and circulation, allowing it to be freely traded or rented, while also creating opportunities for in-game markets.

Documents

Tamper-proof and easily verifiable are the hallmarks of NFT. Using NFT, legal documents, medical records, invoices, ownership contracts, and more are free from these concerns, and any person or organization can check the on-chain records to verify that they were issued by the proper authorities.

Digital Property

Domain names, usernames, etc. are digital property that we already own. They are unique and preferably transferable. This sounds like a use case tailor-made for NFT.

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Conclusion
There are many more uses for NFT that I haven’t thought of, many of which will take years to implement, but I am confident that the reach of NFT will expand by the tens of thousands in the future.

Translated with www.DeepL.com/Translator (free version)