Are NFTs More Than Just Art

If you saw this post sometime last year or very early this year, it would probably begin with "What is an NFT?" and probably go on to talk about non-fungible tokens, what they are, types, what determines the price, and a lot of other stuff that seems confusing on the first encounter. Although NFTs are still quite controversial, with recent developments, it is agreeable at every point that they've evolved widely beyond expectations.

With the conversion of art, music, albums, digital assets, and nearly anything else into NFTs, a new field of possibilities has opened up, allowing users to achieve much more than they imagined in the metaverse. However, despite the apparent advancements, many people still question the utility of NFTs in the real world.

Are NFTs More Than Just Art

NFTs are more than just art and could be any other file or document stored on the blockchain. While a lot of people would argue that the premise for buying NFTs is for the art, the fact remains that NFTs are more than art, as we're beginning to see more use cases for them in the real world. Buying an NFT goes beyond the art or whatever else it is.

Web3 is built to reward participants, and users have come to see the opportunities present as an opening for investments. Hence, people buy NFTs hoping that value will rise and become their ticket to making more money. NFT collections like BAYC, CryptoPunks, Doodles, etc., are great examples of collections that have done exceptionally well and made the holders a lot of money.

NFTs are also beginning to create opportunities that never existed for many business models. From GameFi, to finance, the entertainment scene, and so much more.

What Makes NFTs Valuable

It is quite unarguable that NFTs have become a rather valuable asset in the digital market. These unique, non-fungible tokens are evident partly since sales soared to nearly $17.6 billion in 2021, almost an overall 21,000% increase over the prior year of $82 million.

Investors and collectors worldwide have widely understood the newly available possibilities of these assets from the uniqueness and rarity of popular collections such as Okay bears, DeGods, Crypto Punkz, Cool Cats, and more.

What makes NFTs valuable in the digital market remains authenticity and rarity as it is relatively easy to duplicate products in the real world. NFTs are becoming mainstream for providing a platform for authenticity. As NFTs are secured by Blockchain technology and managed by Smart Contracts, you won't have to worry about dealing with counterfeits and duplicates.

Use Cases Of NFTs

If you've ever wondered why anyone would need to buy an NFT, then it's certain you would have questioned what importance these digital assets have in the real world. To satisfy your curiosity, we'll give a high-level overview of the most popular use cases of NFTs in the digital world.

Gaming industry

NFTs and the gaming world are wholly synchronized and might as well be regarded as a match made from heaven. NFTs can be easily integrated into gaming systems, providing developers with more exciting ways to expand their ecosystem. They also offer an extra layer of security against fraud in the gaming industry by allowing for the secure verification of ownership and the protection of player accounts.

Music Industry

Like NFTs are featured as arts, images, or gifs, audio files can also be integrated to create a collectible piece of music from an artist. NFTs offer artists and creators a new way to showcase their music and put it on the blockchain through NFT markets, interacting with their fans and community.

Non-fungibility is used in concert tickets and other music business peripherals to prevent fraud. Several musicians are beginning to see NFTs as an avenue to distribute, sell, promote and provide their audience with exclusive rights to their music.

Art Collectibles

There is a massive platform for digital assets and collectibles, providing numerous opportunities for NFT collectors. NFT collectors purchase artworks they relish in hopes that they will retain their value and increase over time. Aside from raising their earnings through reselling, they can also benefit from NFT utility for being token holders.

Conclusion

There you have it! NFTs are more than just art; they could be a digital representation of several assets. And although the sales of these digital assets have dropped considerably within the last few months, they still remain a form of investment for many.

They could be considered an integral part of the global adoption many look forward to in the blockchain ecosystem. With NFTs being integrated into GameFi, P2E mechanism, the metaverse, and more, we could say that these digital assets are here to stay and are creating new possibilities for a more exciting web3 universe.