WHAT ARE NFT USED FOR !!!

What are NFTs used for?

NFTs are used for a wide variety of digital and non-digital assets, including digital art, gaming items, domain names, physical items, and investments and collateral.

Digital art

You might think of an NFT as our digital era’s version of a rare piece of art. Digital art is the most common way that NFTs are used in the current market. Owning an NFT means having personal ownership of an image that might often be replicated online. Common examples of non-fungible tokens include popular memes from the 2010s, as well as more recently produced digital artwork.

NFTs generate a way for creators to receive the profit and earning potential they deserve for their digital content. Platforms such as social networks take advantage of a creator's work in exchange for exposure. However, exposure alone doesn't pay an artist's bills. Even after a non-fungible token is sold, the original creator can continue to receive royalties.

Though NFTs can still be replicated, ownership of the original content holds value depending on the market demand for it. Therefore, when NFT content is copied or shared, it only gains more value.

Gaming items

Aside from content creators, NFTs have found popularity in the gaming industry, particularly with game developers.

In many games, you have the option to pay real money to buy “upgrades” or additional items to enhance your gaming experience. By introducing NFTs to this concept, you have the opportunity to resell items purchased in games once you’re finished with them.

This is appealing to game developers because, similarly to digital content creators, they can receive royalties when their creations are re-sold.

This opens up a huge new market with multiple levels that don’t stop at the height of a game’s popularity. Digital products purchased in-game can long-outlive the lifespan of a game, as they have the potential to become much-beloved memorabilia that will continue to be shared and sold in the future.

Making Ethereum addresses more memorable

The Ethereum Name Service (ENS) also uses NFTs to create an easy-to-remember digital address or domain. This can be likened to a website domain name, which allows an IP address to be more memorable.

Just like website domains, ENS domains hold value depending on how long, relevant, and easy-to-remember they are. Using NFTs is the ideal way to trade ENS names in order to transfer ownership without the requirement of a domain registry to oversee.

Physical items

This might seem counter-intuitive since NFTs are generally associated with digital products. However, the tokenization of physical items is slowly but surely developing.

Cryptocurrency is already on the rise in our society, and very soon it will be one of the most common ways to make secure, big-ticket purchases without the need for facilitation. Since NFTs are a digital record of product ownership, we will be able to attach them to our physical properties such as real estate, jewelry, and rare items. With this, you will be able to instantaneously transfer ownership of your property in exchange for a crypto payment.

Of course, this concept has not yet developed as far as digital NFTs, but recent projects show great promise that it's on the rise.

Investments and collateral

Decentralized finance (DeFi) is a new financial technology built on secure distributed ledgers like those used by cryptocurrencies. At present, you can use cryptocurrencies as collateral to borrow money with DeFi applications. However, since not everyone owns large amounts of crypto required to be put down as collateral, NFT-backed loans have also come into the mix. 

NFT creators can also give others the opportunity to own a portion of their digital token without purchasing the entire thing. Known as fractional ownership, this concept allows an NFT to have "shareholders", thus encouraging more buyers and sellers. This gives people a greater opportunity to own and profit from items they're passionate about.

Along with NFT marketplaces, fractionalized tokens can also be bought and sold on decentralized exchanges (DEXs). The number of fractions a digital asset has will impact its overall price. 

It's believed that in the future, decentralized autonomous organizations (DAOs) will exist for NFT shareholders, allowing them to securely coordinate and manage their shared assets.

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