An endless list of how to use a JPEG - PART II


In Part I of this article, we elaborated on some of the existing use-cases of NFTs while mentioning their potential. In this article, as a continuation of Part I, we will be elaborating on other existing creative use-cases and broadening our horizons. Also, we will discuss some of the areas in which NFTs might be useful in the future.

Current use-cases cont’d:

  1. Ownership of physical assets: An NFT helps to create a decentralized world; it enables peer-to-peer connections and keeps the intermediaries out of the transaction. By nature, blockchain technology prevents fraud and uncertainty with the transaction; therefore, sellers & buyers can more easily see what the reality is. If this transparency and certainty are desired for digital assets, wouldn’t it be even more facilitating in physical assets? There are a few examples of this concept, so there is a developing NFT marketplace , and there are some innovative galleries that sell physical art pieces as NFT. It is just the beginning…


  2. **Licenses & patents:**Patent holders can use an NFT to monitor the ownership and licensing of their patents. NFTs can be integrated into self-executing contracts, which guarantee buyers all the rights of the contract, including the right to sue for any violation. An encouraging example is IBM's recent steps to trade patents as NFT. The partnership of IBM and IPwe aims to create a platform powered by IBM infrastructure using IBM Blockchain and IBM cloud. IPwe platform will allow members of the patent community to engage, transact, buy, license, finance, sell, and commercialize patents. NFTs can bring new liquidity to the asset class for investors and innovators.


  3. Royalty streaming: Do you want to gain money while listening to your favorite artist? Thanks to royalty streaming NFTs, you would be paid to play the music you already love in real life. Sound unlikely? It's not! A fantastic and creative marketing idea comes from musicians such as Nas. The ideology is facilitating this for their fans by enabling buyers of their NFTs to receive a portion of the streaming royalties for particular songs. Giving your community a financial incentive to buy an NFT and, in essence, making them be part of the game. In this way, the audience will feel more connected to the system.

    On the other hand, the platform called Royal enables the artist to sell their part of albums as an NFT. A recent example is from The Chainsmokers who are stepping up promotion for the release of their new album So Far So Good in an unusual way: they are giving away a portion of the album royalties to their fans for free. The Chainsmokers justify the “giving away” policy by saying “It was important for us to do it this way because this isn’t about profiting off some new tech for us, it’s about connecting more deeply with you and harnessing a new disruptive technology in an effective way that truly shows what is possible as we head towards a Web3 world.”

  4. Gaming: There is significant attention to the NFT sector from the gaming industry. NFTs are the perfect fit to use in-game; they can be used as tradable items or features for characters. Users can sell their collectibles in the form of NFTs to other players. Other than that, there is a play-to-earn gaming structure in which players are given the opportunity to make a profit via NFTs while playing the game. The reward can be in the form of tokens or NFTs.

    Moreover, NFTs are lucrative for developers because every time an NFT is traded in the marketplace, developers can gain royalty. So, integrating NFTs into the gaming industry can benefit gamers and developers from various aspects. The wide range of NFT games that already exist shows us the NFT’s success in adaptability to the gaming environment. The majority of the games are based on BSC or Ethereum. Axie Infinity, Sorare, Gods Unchained, Pegaxy, and Vulcan Verse are some famous examples of this emerging industry.


  5. Course certifications and online learning: Imagine the scenario in which course licenses are tokenized; as long as you have that token, you have the right to access particular courses and relevant books to get a license. After completing courses, you receive a certificate as NFT. It already exists. Zastrin, an education-based company known for online programming courses, came up with this creative idea. They want to facilitate the learning process and certification; moreover, developers want to provide several benefits that are not possible for offline materials (books). Tokenized courses care about the author (or content creator); every time a license changes hands, the author gets some commission. It is an excellent way to appreciate the author's work. Second-hand tokenized materials don’t lose their value as offline materials. Think about a book in which important content is highlighted, and some notes are taken on it. In such a case, being second-hand increases its value. In real life, the price is generally based on the condition of the book (new, good, acceptable); this approach simply disregards the work of the previous owner.

    One of the biggest challenges of cryptocurrencies' is the energy consumption and the related carbon footprint. Blockchain technology eliminates the requirement of intermediaries and imbues trust between parties to transactions. Removing the intermediaries saves energy. Evergreen Carbon Credits (ECC) is based on a unique purchasing and verification system of certified carbon credits using blockchain technology and NFTs. In the system, any user, whether individual or company, can decide on the number of carbon credits they want to buy by using the provided online calculator; afterward, a certificate of the purchased amount of carbon credit in the form of NFT is delivered to users’ digital wallet. The creation of a carbon credit market may help to reduce emissions and encourage businesses and individuals to act more responsibly. Also, Moss.Earth uses NFTs and crypto carbon credits to combat rapid climate change in the beautiful Amazon Forest. Similar to ECC, Moss.Earth tokenizes carbon credits as MCO2 for individuals and companies to offset their emissions. Moss.Earth also offers NFTs to own a piece of the Amazon rainforest. One NFT is equal to one hectare of forest. On the website, Moss highlighted that it is actual land, and NFT holders can visit the property (deforestation is, of course, forbidden). So, it is not like buying a parcel from metaverses. So, this particular example is also a good representation of how to combine the digital & real worlds via NFTs.

  6. Loyalty points & awards: NFTs offer organizations a brand-new playground to create exclusivity and increase member engagement. NFTs can be used as rewards that enable customers to gain access to events, conferences, VIP lounges, etc. And with this rewards system, customers can even trade earned awards in the marketplace. There are a few examples, from the hospitality: Marriott Bonvoy, beauty: Clinique and sports industry: NFL American football league


What might be next?

NFTs have entered our lives as hype fueled over-priced JPEGs, however as outlined by this blog series, there a many real world applications that are gaining traction. The use-cases mentioned above with representative examples are good indicators for the future of NFTs. If NFTs are simply proof of ownership, we can demonstrate each possession, including real estate, cars, and lands, with NFT. On the other hand, NFT is also a perfect fit for the supply chain due to its unique technology that makes tracking so easy; information about the origin, transportation details, and storage location will be accessible to retailers. This way, the supply chain organizations will be more accurate and reliable. Another area that opened a whole new world of possibilities is Soulbound NFTs. Let’s dive deeper on this mind-boggling concept that Vitalik Buterin came up with and try to understand how it can change the NFT sphere.

Soulbond NFT:

Just like your soul cannot be separated from your body unless you are alive, as permanent, non-transferable NFTs, soulbound tokens cannot be transferred or removed from your blockchain wallet. Some SBTs (soulbound tokens) might function as real-life equivalents of the achievement badges you earn in video games when you finish a specific task or surpass a predetermined milestone. Soulbond Tokens stand for verifiable data about you which are stored in your private blockchain as individual NFTs, the usage areas are countless. An SBT might be used to confirm information about you such as your name, birthday, political opinions, charitable contributions, criminal history, health history, nationality, religion, and military service. There are countless options. Even Soulbound NFTs can be a form of a resume that makes it easier to reach a person's background before doing business with them, fraud can be minimized thanks to a decentralized recording system. So, who needs Linkedin ?? Organizations could, for instance, use SoulBound NFT to check a candidate's work history before offering a position. This approach is a good example of how NFTs can shape the future, NFTs are not all about trade.

The initiatives to make businesses decentralized will boost the domain and familiarity of NFTs. With the improvements in legal issues on smart contracts and Blockchain technology, NFTs may become unstoppable; because eliminating the intermediaries from intermediary transactions provides accuracy, transparency, and security while reducing the cost. I firmly believe that NFTs will provide freedom and help the fight against corruption in centralized organizations.