NFTs have come a long way from where they started. The NFT storm has taken many brands, industries, and investors. While all this hype has stayed around NFTs for some time, it’s high time that we look at NFTs beyond JPEGs and memes. Whether it is passive income tokenomics, real-world event access, or play 2 earn gaming, NFT utility is slowly catching fire. Let’s dive deep into understanding what Utility NFTs are.
What are Utility NFTs?
Through the term ‘Utility,’ it is obvious that Utility NFTs mean NFTs with usefulness and purpose. It is the value and effort attached to an NFT. NFT utilities may include digital assets, physical goods, services, experiences, etc. With Utility NFT, the user can unlock some useful applications that are beneficial for the user.
Let’s look at the times and forms of these Utility NFTs.
Types of Utility NFTs
- Utility NFT can provide more than merely having an NFT.
- Access to events and meetings
- Ownership of physical items.
- Access to in-game assets and more in NFT gaming platforms
- Partial ownership of an item
Utility NFT can be the Future of the NFT scene. Users are mostly looking for NFT projects with utility because they carry real-world uses and quantifiable value. Utility NFTs help the NFT markets expand their horizons and look at NFTs beyond JPEG images or videos.
Doorway to limitless opportunities
We are in the nascent stages of utility NFTs, yet many creators have envisioned investing in NFTs that come with a utility. Utility NFT projects can be classified according to type, and they feature a variety of practical applications facilitating endless opportunities for the NFT owners with a vision. Based on their scarcity and exact value, the NFT’s use cases hold value.
Utility NFTs can be divided into the following categories.
- Community NFTs
- Fantasy Sports NFTs
- Gambling NFTs
- In-game NFTs
- Social NFTs
Holding a utility NFT has much more purpose than a usual NFT; for example, the user gets early access to products, airdrops, exclusive invites to events with top celebrities/athletes, and much more.
Expanding the boundaries across fields
As innovations are sprouting across the NFT space, let’s look at three major industries where Utility NFTs have been functional:
- The concept of digital Fashion has been gaining traction. Gamers have had the option to own accessories and clothes for their character or avatars in the game. As digital Fashion is evolving, so is the process of buying them.
- Users have access to a vast array of virtual fashion pieces which can be used and worn on avatars. NFT utility technology has transformed the business to a great extent.
- Virtual Fashion shows immersive retail shopping experiences that give access behind the scenes etc. can be done in the comfort of your home from your favourite brand.
- Gaming is one of the prominent industries that use NFTs. Gaming NFTs are available in various genres, from casual farming collectibles, collectible role-playing games, and RPGs to deeply immersive strategy simulations.
- This allows cross-compatible play, in-game trading, instant transactions, brand expansions, and new monetary resources.
- While play-to-earn gaming NFT utility models are gaining popularity, gaming NFTs are running the show NFT Art.
- On getting an NFT, you’ll have partial ownership in the game and can further trade or sell those tokens within the game.
Some games also enable the facility to exchange gaming NFTs across various platforms in exchange for real money.
- Music NFT applications are a block chain-enabled way to purchase the music you love. Instead of buying a track through another platform, you can buy the music through the NFT utility token.
- Why not buy the music in MP3s? And Why in NFTs?
- NFT utility applications will provide not only the music but also the ownership of the music.
The gains that we have through NFT utility and the growth of the use cases will help more people discover and give birth to new and creative ideas in the NFT space. However, the Utility NFT applications are still in the growing stage, and many more projects are yet to launch. With these projects, the real-world values of NFTs are sure to bloom.