NFT is the abbreviation for “non-fungible token”. It is a digital asset that represents a unique piece of digital property that can be traded on the blockchain. In popular cryptocurrency projects, such as CryptoKitties and Ethereum, NFTs function as assets or commodities similar to how ordinary assets are traded. However, there are also specific use cases for NFTs beyond blockchain-based games and virtual economies. As an example, tokens issued by companies in Initial Coin Offerings (ICOs) can use these to represent shares or company ownership in the company’s platform.
1. THE LATEST NEWS ON NFT PROMOTION
Recently, there has been a significant increase in NFT promotion in the crypto space. This is mainly because many crypto projects have planned to issue their own tokens as part of their ICOs. For instance, BTCManager reported at the end of last year that the company Microsoft was planning to launch its own token called Microsoft Kin on Bitcoin (BTC) blockchain. Also, decentralized e-commerce platform OpenBazaar has introduced its own ERC-20 token called OBX to allow users to buy and sell goods online through their smart phone app or website.
A. ERC-721 Token Promoting
Separately, on the Ethereum (ETH) Blockchain, ERC-721 is a utility protocol that has been adopted by many projects and companies. As an example, it was reported that user data can be transferred from one distributed application (dApp) to another using this protocol.
In addition to these news mentioned above, NFTs are also used for different reasons. For instance, NFT can be used as a decentralized form of digital currency for paying for goods and services provided on blockchain platforms such as OpenBazaar.
B. Blockchain-based Decentralized Identities
NFT can also be used as digital identity, particularly in the gaming industry to verify a person’s identity and other activities. For instance, during the year 2018, China’s Ministry of Human Resources and Social Security (MOHRSS) announced that it is working with other departments on a blockchain-based social security payment management system. Also, according to a report from IBM on “Blockchain for Social Impact”, there are other areas of application beyond social security payments in which Blockchain technology could help build trust among people and make life easier.
2. DO-IT-YOURSELF NFT SUCCESS STORY
Above, we have seen that the main use of NFTs is to represent assets and commodities similar to how traditional assets are traded. However, there are other potential use cases for NFTs beyond blockchain-based games and virtual economies. These applications can be used in different fields such as finance, healthcare, retail and real estate. As an example, a company recently launched its platform called Solidified, which allows users to track the movement of their goods through blockchain social marketers platforms. This application also uses a kind of utility token called SOLN that can be exchanged for different goods and services at participating stores in their network. All the website list is here.
3. NFT PROJECTS PROMOTION
NFTs can also be used to represent shares or company ownership in the company’s platform. In this regard, many crypto projects and companies have planned to launch their own tokens through ICOs. For example, BTCManager reported at the end of last year that the company Microsoft was planning to issue its own token named Microsoft Kin on Bitcoin (BTC) blockchain. Also, decentralized e-commerce platform OpenBazaar has introduced its own ERC-20 token called OBX to allow users to buy and sell goods online through their smart phone app or website.
The NFT market is highly competitive with a lot of start-ups and established players in this field. For example, CryptoKitties is a digital game in which users can “adopt” and trade virtual cats with unique design and characteristics. This game has turned out to be a great success story with over US$20 million raised in the first-ever Initial Coin Offering (ICO) for a digital platform on Ethereum. In addition to this news, NFTs are also used for different reasons. For instance, NFTs can be used as a decentralized form of digital currency for paying goods and seo service provided on blockchain platforms such as OpenBazaar.
4. NFT REGISTRATION
NFTs can also be used as digital identity particularly in the gaming industry to verify a person’s identity and other activities. For instance, according to a report from IBM on “Blockchain for Social Impact”, there are other areas of application beyond social security payments in which Blockchain technology could help build trust among people and make life easier. The NFT market is highly competitive with a lot of start-ups and established players in this field. For example, CryptoKitties is a digital game in which users can “adopt” and trade virtual cats with unique design and characteristics.
CONCLUSION
As mentioned, NFTs have different use cases from those used in blockchain games and virtual economies. In fact, the crypto community is now divided whether the future of cryptocurrency lies in crypto trading or developing real-life applications for blockchain technology.
However, irrespective of these two competing perspectives, we can be certain that NFTs will continue to play a relevant role in the crypto industry as it evolves over time.