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Non-fungible tokens or simply known as NFTs, is a term spreading like wildfire across the world, irrespective of industries and sectors. So, what exactly is an NFT? In layperson’s terms, NFTs are unique digital identifiers recorded on a blockchain. They are purchased and sold online, typically with the use of cryptocurrency.
The USP of these identifiers is the ownership and authenticity it guarantees to its holders. NFTs cannot be reproduced or modified. Let’s say you are planning to buy an NFT, but what next? What will you do with it? What kind of NFT can you purchase? And, most importantly, why should you invest in it? The first thing you need to identify is that each NFT has benefits based on the community it is serving. Primarily, these can be categorized into six, and they are as follows:
1. Art and collectibles
Used to buy and sell artworks, these NFTs are probably the most popular ones out of all existing offerings. They have created a new and expanding market for digital art since, traditionally, art is often undervalued on paper and it is difficult to verify its ownership and authenticity. Buying an NFT artwork will not only give individuals a chance to be the owner of authentic and unique artwork but will also act as an investment for the future.
2. Sports Memorabilia
The rapidly growing form of NFTs, sports memorabilia has become a fan favourite. Fans and followers, by purchasing sports NFTs, can not only become the owners of some of the most memorable moments in sporting history but can also win rewards in the form of virtually meeting players, getting autographed merchandise, and making a profit on upon selling the NFT. “To make it compact and concise, any industry or domain driven by emotions is bound to be an ideal candidate for NFTs… And cricket is surely one,” shares Kameshwaran Elangovan, Co-founder and COO at Guardianlink (parent company of JumpTrade).
3. Event Tickets
Event ticket NFTs are used to buy and sell tickets without the fear of it getting lost or stolen. Social happenings such as concerts, IPs, and matches are coming up with new ways to interact and engage with fans using NFTs. “There is a direct correlation between live events and NFTs. I believe that in future, some of the biggest event properties or festivals will be the biggest NFTs. For example, take Tomorrowland; imagine having a thousand NFTs sold for lifetime benefits. Do you think it’s going to be a tradable NFT? Of course, they will be tradable NFTs,” shared Navneeth Mohan, Director & Chief Executive Officer, Laqshya Live Experiences, at the Web3 and Tech and Innovation Summit 2023 held by Entrepreneur India.
4. Gaming
Gaming NFTs are tokens associated with digital items in a game which can be bought or sold. Ghost Recon, Assasin’s Creed, and Far Cry are some of the notable games which have incorporated the NFT mechanism. Axie Infinity is a game where each monster equals an NFT and can be collected to create a team. These teams then fight other players or teams hoping to rank higher on the competitive table.
5. Virtual Real Estate
Buy, rent or sell your virtual properties in worlds such as Landvault, The Sandbox, and Decentraland. It not only verifies your ownership rights, but one can also monetize their real estate land by renting it to other players. “Lands are presented as NFTs, so each piece of land is unique. Once you buy it, it becomes yours and is a part of your wallet,” shares Samuel Huber, Founder and CEO, Landvault, on ‘Buying a land in Metaverse.’
