Non-Fungible Tokens, Their Use Cases and Perspectives in 2024

Non-fungible tokens (NFTs) have taken the world by storm. Within 2024, the revenues from the NFT market are expected to reach $2,378.00m, and by 2028, the projected revenue amount is $3,369.00m, with an annual growth rate of 9.10%.

It means that NFTs’ impact on the global economy is expected to be growing exponentially.

What are the reasons for such a growth rate?

While the majority of users associate NFTs with art and content creation, this understanding is very limited. So, what about checking the perspectives of NFTs in art, business, and economy, and whether non-fungible tokens are going to have any relevant impact on the world in the years to come?

Are non-fungible tokens revolutionizing the art and content creation industries?

Blockchain is widely praised for being secure and immutable. Once an NFT is minted, it cannot be counterfeited, eliminated, or replaced. This is why NFTs are expected to play a crucial role in combatting piracy and counterfeiting.

One of the main proofs that NFTs may work out as expected is the fact that even the European Union Intellectual Property Office has issued an official practice about NFTs and virtual goods. Brands willing to move their intellectual assets in the Web3 world, have to ensure that there is a physical asset backing the virtual one, while the term NFT on its own is “not acceptable”. So, even from this practice, we can see that there are still many limitations on the way for NFTs to represent copyright. NFTs are certificates recorded on a blockchain, and these certificates shall represent physical assets.

Tokenization of real-world assets: real estate, valuable items, etc.

There are many platforms that benefit from this technology by allowing to tokenize real-world assets such as homes, airplanes, yachts, valuable art pieces, and other worthy items. Further, fractions of these tokens are sold to investors.

This practice is highly beneficial to everybody. People can buy a property that was earlier not accessible due to its high prices. Property owners can get money from sales or rent faster than if they were relying on high-net-worth individuals only. Geographical limitations are not as restrictive as they were before the tokenization introduction because blockchain is accessible from any point in the world.

But how NFTs are related to tokenization?

Tokenization relies on NFTs to happen. Real-world assets are turned into NFTs which are recorded on a blockchain. Each NFT has its identification code and metadata, these things make the NFT unique. This uniqueness is what gives NFTs value in the world of business.

NFTs for solving ethical issues

One more type of NFT is expected to rise - those that will be taking care of the ethical part of the game. Here, we are talking about tokenization again but from a different perspective.

Take a newly developed medication for a super contagious disease that is spreading in Africa - counterfeits are the major problem in such a case. NFTs would allow to ensure that the medication comes from a reputable pharmaceutic company and can be trusted.

Another example would be gems, for instance, diamonds. It is not a secret that many gems are mined in Africa, and plenty of mines rely on child labor to benefit more. NFTs would help to track the gem's origin to ensure it doesn’t come from a mine where child labor is used.

While it is still long for this use case to be applied, it for sure may add value to the NFT industry and boost its potential.

NFTs for fighting scam

Have you ever bought fake tickets to a concert or another important event? If yes, you know this pain. NFTs will eliminate the danger of buying fake tickets by forging the title of ownership on a blockchain.

Well, tickets are just an example. I expect that in the future, NFTs can be widely used to prove the authenticity of items.

Bottom line

NFTs are still evolving, and like any new technology, they will be susceptible to ups and downs. However, one thing is clear: in the future, everything will be about utility. NFTs as images will sustain but this use case won’t be the main one anymore.

What are the future use cases of NFTs? Some of them we can already determine, however, I am sure that many more things are to come.