In 2021, the world went crazy with NFT art. Gallery owners and auctioneers are talking about it. Silicon Valley business people and Hollywood stars are investing in NFTs digital art, and the most popular digital artists are building a fortune on it.
For example, CryptoPunks are sold for millions of dollars, and Fidenzas are turning into timeless classics. However, the future of NFT is much more promising than the banal use of the tool in games and digital art. Before we cover four use cases for NFT that people don’t talk about enough, let’s learn more about this tool.
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NFT – Simple Words About Complex
Many of you have heard about this technology, but few understand how NFT works. The Internet is full of confusing information, and we decided to fix it. The abbreviation NFT stands for non-fungible token. The keyword here is non-fungible. It means that the object is unique and cannot be replaced because the same object does not exist in nature.
The next word that requires clarification is a “token” – the name of the unit of account in systems that work on the blockchain. Blockchain itself is a technology that organizes a database in a chain of blocks. At the same time, each of them stores information about the previous block. The whole system is decentralized – that is, the data is not stored on one server but on the computers of the chain participants. A decentralized system cannot be hacked, faked, or destroyed since this will have to be done on all computers in the system.
Thus, NFT is a digital certificate, which is a unique object. A non-fungible token can be linked to any digital product: image, audio, video file, etc. Now back to the article’s main idea and find out where beyond gaming and digital art you can use NFT.
Transfer of Ownership of Textbooks
Despite the big breakthrough in education, many students still prefer to buy paper textbooks instead of digital ones. This decision is because, after graduation, students will not be able to transfer digital textbooks to the younger generation. In addition, publishers spend less money printing paper books than publishing digital ones. Unfortunately, the financial situation of students forces them to buy what is cheaper.
An excellent solution to this problem is the use of NFTs. Publishers can print an NFT for each copy of the textbook. Thus, students who wish to keep the books for historical reasons or use the textbooks in the future at work will still be able to do so. However, students who want to get rid of the books and get their money back for buying them can sell the tokens and pass on their right to read the books to the next generation.
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Transfer of Property Ownership and Unlock Capital
Transferring property ownership is a highly long, laborious, and costly work. However, NFT can take real estate to the next level. How?
The process is quite simple: the owner can issue a token representing their property. As a result, the real estate owner will not have to hire realtors, notaries, and other experts to complete the transaction. The entire process of selling the building will take place online – it will be enough for a person to transfer a token to a future buyer. In addition, the owner will be able to use the token in a real estate Defi application to profit from the sale of the property instantly. It is much more convenient, faster, and cheaper than going to the bank.
However, the benefits of NFTs don’t stop there! Today, US residents, only under certain conditions, can dispose of part of the real estate without consulting with the second owner of the building. However, NFT gets you out of those handcuffs. Using this technology, you will be able to own and dispose of part of a building as you wish, benefit from rising real estate prices, and have a digital record of your percentage of ownership stored on the blockchain.
Digital Music Licensing Management
A few decades ago, people bought music on CDs and owned them all the time. CDs were perceived as a collector’s items containing unique images and notes. If a person got bored with some music at a certain moment, he could resell a physical copy of the CD to other lovers of this genre of art.
With the advent of Spotify, Apple Music, and YouTube Music, the ability to listen to your favorite songs has improved. However, these platforms have significantly reduced the appeal of collecting the album. NFT can revive this tradition!
Musicians and record companies may issue NFTs for each copy of an album. NFT will allow users to stream the album indefinitely. The tool will also enable albums to contain lyrics and images unavailable on other digital platforms. This adds to the value of the album.
If you decide that the album is no longer of interest to you, you can resell the rights to reproduce the music to a new owner. NFT also allows musicians to secure rights to the music. No one will broadcast music at concerts or public events without your permission. Not only do you increase your bottom line, but you also make your fans feel unique by giving them access to exclusive music.
H2 Photo Licensing Management
The photography industry is teeming with problems the most. To achieve recognition, photographers post their photos to stock photo sites. However, users of such platforms use pictures in violation of copyright – in social networks, people do not indicate the owners of images. Even when buying a license for a photo, there is no guarantee that the user will not send the image to another person, and here the copyright chain breaks again.
NFT can solve these problems. Photographers and photo platforms will create an NFT for every user who purchases a photo license. If a person wants to resell a license, he will need to contact the site and directly transfer the rights to use the photo to the new owner there.
Without the NFT, experts would have to track down clients and find out who shared a photo with other users who did not have a license. This is unprofessional, mean, and unfair to the client. With NFT, license transfer tracking can be done entirely on the blockchain.
Conclusion
Even though this tool conquered the world only 15 months ago, its capabilities show why NFTs are the future. Thanks to the NFT, people can permanently shake off the overwhelming power of very vulnerable state systems. NFTs will allow you to manage your property without sharing your data with third parties. It’s like Bitcoin, which allows you to be your banker. The tool goes beyond social status, memes, or digital art. NFT has started a revolution in banking and is moving forward successfully!