Why the future of NFTs goes far beyond gaming and digital art

Written by Leighton Emmons, co-founder of the Blockchain Boys Club

The use cases for NFTs extend far beyond games and digital art.

Yes, it’s true that CryptoPunks sell for millions of dollars, Fidenzas are turning into timeless classics that collectors will hold onto for years to come, and Axie Infinity provides full-time jobs to people in developing countries through cash mechanisms. game to win that rewards players more than they reward game publishers.

But the future of NFTs and their applications is much bigger and brighter than games and art. NFTs can represent proof of ownership, manage licenses, provide social status, grant exclusive access, and certify authenticity.

Here are some of the use cases for NFTs that I think people don’t talk about enough.

License management for photography

As someone who works with a startup in online photography website / storage space, I am very excited about the future application of NFTs to photography.

Today’s photography industry is full of problems. Photographers upload their photos to photo sites like Shutterstock Where iStockPhoto. But users of these sites often use these photos in a way that violates the copyright and license of the photos.

There is also another issue that plagues these platforms and the photographers who use them. If a user purchases a photo license but then shares the photo with a second person, it can be difficult to prove that that second copy of the photo is unlicensed and therefore infringes copyright.

However, NFTs can help solve this problem. In the future, a photographer or photography site will be able to create a new NFT for each user who licenses a particular photo. Any user can then prove that they have the license by simply signing a transaction using their wallet.

A user can even transfer his license to another person if he wishes, provided that he no longer uses the photo himself. Without NFT, this type of license portability would require photography sites to perform in-depth customer tracking using a centralized database. This concept is expensive and would likely be unpopular with users.

But with NFTs, the tracking of license transfers can be done entirely on the blockchain, reducing the time it takes for a photography site to keep the feature working.

Management of music licenses and royalties

Another yet untapped application of NFT is the licensing of digital music.

In the past, consumers bought music on CDs and owned them all the time. If a person had enough of a particular CD, they could resell the physical copy to someone else. CDs were seen as collector’s items whose values ​​went beyond the music they contained. They contained sleeve notes and images that would be lost to the owner even if they had to copy the music before reselling it.

But since the rise of Spotify, Apple Music and YouTube Music, this model of customer ownership and collectability has given way to advertising and subscription services. It greatly reduced the emotional appeal of collecting an album.

NFTs can bring this collection back to music. Artists and record companies can issue a DTV for each copy of an album. Each NFT can allow a user to play the album they represent as many times as they want. It may also contain lyrics, images and other media that are not available on subscription platforms or based on advertising and that add value to the ownership of the album.

If a user decides they no longer like a particular band, they can resell their albums, granting the right to stream each album to the new owner. If they buy a band’s debut album before it becomes popular, they may even find that they can sell the album for a profit.

Songs and albums can also be linked to concerts, meet-ups and fan clubs of the artists, and can even grant the owner exclusive rights to the song. This means that NFT music can provide fans with a sense of social status and exclusive access to the artists they love.

The benefits of NFTs can go far beyond the songs themselves and take fan loyalty to a whole new level.

Unlock equity and transfer ownership of real estate

Another place where NFTs can shine in the future is the real estate space. Today, the transfer of ownership of real estate is extremely complicated and expensive.

But with NFTs, an owner can theoretically issue a token that represents their property, and that token can be transferred to a buyer to complete the sale. A homeowner can even use the token in a future real estate DeFi app to extract equity from their home. It would be much cheaper and more efficient than using a bank.

That’s not all! Imagine owning a fraction of a property that you wouldn’t normally be able to afford. A non-fungible token can give you the ability to do just that. Own just a portion of a house, take advantage of property price appreciation, and have a digital record of your percentage of ownership stored on the blockchain.

Transfer of ownership of textbooks and other works

University textbooks can also be turned into NFT in the future. Many students currently prefer to buy paper textbooks instead of digital textbooks. This is because digital cannot be resold after the end of a course.

Although publishers need to spend money to print paper books, digital books always end up costing students more.

This problem can be solved by asking the publisher to print an NFT for each copy of the manual. This way, students who want to keep their textbooks for nostalgic reasons or just because they want to use them as a reference can still do so. But students who would rather get rid of their books and get the money at the end of the semester can simply sell the tokens and transfer their right to read the books in the future.

Future use cases for NFTs are virtually endless

Despite the fact that NFTs have only exploded in the past 18 months or so, using them to store digital artwork on the blockchain is a concept that is already five years old.

In the western world, we take things like proof of ownership, certification of authenticity, licenses and property rights for granted. This is because we have access to strong traditional legal and government systems that protect us.

That said, relying on this protection means trusting a central figure. Unlocking an individual’s intellectual or physical property rights through NFTs has the same value as Bitcoin for money. It allows you to be the steward of your own property in the same way that Bitcoin allows you to be your own banker.

This is an important value proposition to understand, especially for the over 2 billion people around the world who are unbanked and likely live in places where they cannot necessarily rely on a strong legal system to protect their lives. property rights.

This is exactly why the future of NFTs goes far beyond social status, memes, or multi-million dollar artwork turned into profile pictures. This is just the start of a global revolution that started by disrupting the banking industry and will now disrupt everything else.

About the Author:

By Leighton Emmons, cho-founder of Blockchain Boys Club, a new community where founders, developers and investors can come together around their mutual passion for everything related to blockchain; learning, sharing knowledge and discovering opportunities that they might otherwise have missed. The community is kicking off with an NFT collection of 10,000 unique avatars called BCBoys and holders will have access to “The Terminal,” a community members-only area where traders and professional investors offer real-time trading signals and share investment opportunities.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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