Colexion founder and CEO Abhay Agarwal explains the utility associated with non-fungible tokens (NFT) is slowly evolving into a diverse set of use cases.
According to Vikram R Singh, founder and CEO of Entire, recently, there has been a significant increase in utility and switching to tangible NFTs among NFT developers. Utility NFTs are unique digital assets that provide their owners with privileges, rights or rewards that are only accessible to them.
Singh highlights that tangible assets are the conversion of real-world assets into NFTs that can be redeemed for a physical commodity or further sold, the item being stored in the marketplace, which enables NFTs on its platform. lists. In both cases, these utilities or physical assets are represented cryptographically and unique digital assets are stored on a blockchain,
An example of a utility property would be ‘concert ticket’. The Entire founder explained that each paper ticket is exceptional or irreplaceable, as is its ticket number. In this case the utility has access to the show. Instead of providing 800 paper tickets, the show coordinator could have given 800 utility NFTs. Each of the 800 NFTs will be exclusive and irreplaceable; Each is giving the same utility to its owner which is “access to the show”.
Currently, utility NFTs are in their early stages.
However, Singh said, “Some imaginative new use cases are constantly emerging, making this extraordinary use of blockchain innovation universally. Holders have a great deal of choice to access medical services, borders, or opportunities.”
“Organizations can promote deals with NFTs that can from now on be redeemed for limits or gifts, paper markdown tokens for a set of experience books,” Singh said.
Meanwhile, highlighting the performance of NFTs over the years, Ramakumar Subramaniam, CEO and Co-Founder, GuardianLink, said, “We have to admit that NFTs made news not because they were a technological marvel, but because That they were seen as short-term investments that would generate massive profits. More often than not, the biggest marketing point for NFT was the fact that it generated multiple returns on investment over a given period of time, then utility days. Brought it and the Metaverse enabled it.”
Further, Subramaniam said, “We always believe that even the worst of things have some good. The same has happened with NFTs. Since there were a lot of projects that depended only on this short-term spike, people got a lot of money.” Found. -The need for knowledge regarding investing in NFTs. We cannot say that the initial madness over NFTs has completely ended, but we can definitely say that it has lost its initial luster. Has inspired a lot of brands and companies to create NFTs with real utility.”
The GuardianLink co-founder believes that this is the right time for a change in the perception of NFTs. He adds, “People now start looking beyond just photographs and stop wondering why some pixelated images and some bizarre images of human organisms sell for millions of dollars.”
NFT gained popularity last year due to its uniqueness in buying and selling digital assets in the blockchain market. Unlike normal cryptocurrencies, NFTs are cryptographic assets on a blockchain that are not exchangeable due to their indistinguishable nature. In simple words, NFTs are not interchangeable or interchangeable with any other cryptocurrency avenues.
They have cryptographic tokens. Some examples of NFTs are unique digital artwork, a limited fashion-line, in-game items, an essay, digital collectibles, or tickets that provide access to an event or coupon, and even a domain among others. There are names too. Each NFT has a corresponding owner with a public record and is easy to verify. NFTs provide a comprehensive panel of content creators who can sell their work anywhere while accessing a global market.
On the other hand, cryptocurrencies are fungible and can be exchanged or exchanged for another.
Meanwhile, utility NFT is a broader concept of NFT with specific practical applications. They are typically developed with smart contracts and share the properties of immutability, transparency, and security, like any other NFT. However, unlike regular NFTs, according to the Binance website, the main focus of utility NFTs is not their collectibles, but the real-world applications, rewards, or rewards they offer NFT holders.
Even big brands have taken interest in NFTs.
Subramaniam said, “The entry of big brands like Louis Vuitton, Bulgari, Herms and Nike into NFT and Metaverse has also made people think about what NFT can be more than just images. These brands are looking for proper Metaverse experiences. Planning which includes but is not limited to fashion shows, exclusive digital merchandise, and much more. Through its Marketplace Jump.Trade launches the world’s first P2E Cricket NFT, allowing you to play Meta Cricket League and you can earn real cash rewards from playing the game, starting a different type of utility.”
Talking about NFTs as a long-term investment pool, Subramaniam said, “In all this, one thing that remains intact with respect to NFTs is their dimension as an investment. The only difference is that Instead of seeing speculative price spikes as a signal for investment, people have started looking at long-term utility as appointed. This would mean that we would be seeing a lot of purpose-driven NFT collectors and investors in the near future. Sometimes, it’s important to go for a technique to make sure it ends up in the zone of maturity, in terms of perception through its teens.”
Furthermore, Abhay Agarwal, Founder and CEO of Collexion, said, “Blockchain technology ensures that NFTs remain immutable, transparent and highly secure. In addition to their value as collectibles, NFTs provide users with benefits, rewards and access to real-world usage. provide access. which can be redeemed under the play-to-earn (P2E) paradigm. This has inspired many traditional gamers to switch to NFT gaming. NFTs have demonstrated the potential for other wider use cases in practical applications such as that are being used as digital tickets for special events held behind closed doors, thereby increasing customer engagement for the brand.”
The fashion and arts industry has taken advantage of the utility NFTs through various projects. Agarwal said, “A development in Web 3.0 and Metaverse highlights the expansion of the utility of digital tokens as a medium for virtual real estate owners where smart contracts act as lease agreements between users engaged in trading NFTs. work.”
“With such a number of advantages, it is undeniable that this is certainly a turning point for NFTs,” said Agarwal.
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