6 Industries That Are Utilizing NFTs
Updated: Jun 10, 2022
NFTs are usually talked about in the frame of gaming and collectibles. Of course, these are the industries that have most affected NFTs. Aside from those areas, we’ve compiled a list of 6 industries using NFTs in a way that may change how they fundamentally function. Three of these six may surprise you, but the other three may not.
First, let us break it down. NFTs have three main characteristics: authenticity, ownership, and transferable. Authenticity refers to the blockchain technology built into each NFT, creating an individual identity that can’t be duplicated.
Ownership refers to that same blockchain’s ability to track ownership through smart contracts. Tokens can be exchanged, but the owner can’t be changed, referring to their transferability.
Art and Music Usage
It’s not a surprise to hear that NFTs are used in the art and music industry. These particular industries have a history of gatekeepers that control the distribution and sale of artworks and how revenues are sent out.
This provides a lot of flexibility for the artist/company. Because of this, the power dynamic can be potentially changed. Artists can interact directly with buyers and keep the intellectual property with their work to provide a stream of resales.
Cryptocurrency was quickly adopted by the gaming industry through in-app purchases such as shields or skins. NFTs offer gamers the chance to keep what they’ve purchased in the games, even if they quit playing.
Players can convert crypto into rewards that can be taken to other games. This revolutionizes the gaming industry by making it about more than just spending and creating a more engaging environment.
Cryptocurrencies first gained momentum with the CrytpoKitties collectibles in 2017. Recently, the NBA has made its own version of collectibles by allowing collectors to buy a moment in games through NFTs.
In the collectible industry, NFTs prove the asset's authenticity and ownership. Each is unique, and can’t be duplicated, making them rare and valuable.
Internet of Things Usage
Internet of Things is quickly becoming the most prevalent technology today. IoT can be wearable health-tracking devices or controls on infrastructures like power grids. Security on these devices is critical. However, they are often left open to manipulate the information left on connected devices.
NFTs can help stop this from happening by acting as device authenticators that stop anyone from controlling mass amounts of data. It can be physically bound to an IoT with a physical unclonable function that allows for its recovery of a private key and blockchain addresses (nearly impossible to break).
Traditional methods of land ownership are quickly sailing out the window with the involvement of NFTs and cryptocurrency.
Now those assets are being represented with NFTs, proving ownership with secure, signed digital tokens. Such smart contracts will ensure money changes hands while honoring their agreements.
Data security and privacy are a top priority when it comes to healthcare. NFTs allow people to manage their own data and control who has access to it. This has the potential to tokenize health data and can track how data is being used.
The possibilities for affected industries are endless. Next could be fashion, sports, insurance, and even virtual land. Which do you think could be the next NFT frontier?