NFT: The real power of Non-Fungible Tokens (NFTs) comes from the fact that they can encode the ownership of digital assets on blockchains in ways that are more secure, trustworthy, and transparent than ever before. In this article, we’ll take a look at 10 of the best future use cases for NFTs in 2023. These examples show how tokens will be used to represent ownership over all kinds of assets that currently lack reliable ownership tracking systems online, providing new levels of trust and security to the owners of these assets and allowing them to easily transfer their assets from one owner to another.
1) Being able to access your tokens from any location
One of the most compelling future use cases for Non-Fungible Tokens (NFTs) is representing physical property such as a house or car. Imagine being able to buy a piece of land or real estate that you could transfer immediately to another user, removing all restrictions on time and location. When that’s possible, imagine how much easier it will be to do business with clients from around the world. You don’t have to concern yourself with what currency they use, or if they are restricted by foreign exchange laws – they can simply access your token and use it just like cash. That level of convenience is going to open up new doors for businesses wishing to expand globally – opening up new opportunities that previously weren’t available. If you want to get an idea of where exactly we will see these exciting implementations take place, check out our post about How NFTs Are Going To Impact The Real Estate Industry In The Near Future.
2) Paying bills with cryptocurrency
Nowadays, it seems like you can buy just about anything with cryptocurrency—from cupcakes to Lamborghinis. But what about paying your everyday bills? While there aren’t many examples of people using their digital tokens to pay utilities and mortgages just yet, cryptocurrency is growing more popular every day and might be able to help reduce monthly expenses. Here are some possible uses cases where digital currencies could save you money.
3) Buying groceries using crypto
According to Statista, by 2022 approximately 75% of US households will shop online at least once a month. So far, cryptocurrency is failing to gain traction among most Americans, who would rather pay $1.50 on a cup of coffee than wait 5 seconds while they wait to transfer their money from one wallet to another. However, that doesn’t mean there aren’t good use cases out there for cryptocurrency.
While there’s been plenty of buzz about tokens since their rise to prominence, there has been very little clarity on how they might be used. There are some specific use cases that have already been developed and those are what we want to explore today. We’re talking about ways that you could use non-fungible tokens (NFTs) to tokenize your company shares and sell them as a new asset class.
5) Getting a loan using digital assets as collateral
Currently, if you want to get a loan or even sign up for a checking account, you need some kind of proof that you can pay it back: a job, an income. But what about using your digital assets as collateral? Cryptocurrencies like Bitcoin and Ethereum have value because people trust them as currencies — and people trust dollars because they trust that they can exchange their dollars (U.S. government-backed money) for goods and services in return. At some point, we may need to take cryptocurrencies seriously as currencies with real use cases — not just speculative investments — so why not start experimenting now? If businesses accepted cryptocurrencies as payment and consumers used them to buy goods and services instead of cash, what would happen to our entire monetary system?
6) Creating new financial instruments
Over the past decade, there’s been a major rise in financial innovation, as fintech firms like Lending Club and OnDeck have developed products that were previously only available to large banks. Looking ahead, it’s likely that non-fungible tokens (NFTs) will give rise to a variety of new financial instruments; think loans backed by digital assets or futures contracts for specific digital assets. Though each use case is unique, all would share one thing: a reduction in middlemen and friction within payment systems. In short, NFT holders stand to profit directly from economic activity around their tokenized assets.
7) Trading on token exchanges
Not only does trading on token exchanges serve as a way to liquidate tokens into cash, but it’s also a good idea to turn an investment into tradeable assets. While not all tokens can be traded, many projects issue ERC-20-compliant tokens that you can trade on major exchanges like Coinbase and Binance. This is a simple way to diversify your portfolio while increasing liquidity if/when your original investment appreciates or depreciates. Trading may not be right for everyone, but investing isn’t right for everyone either. (If trading isn’t right for you, that doesn’t mean you shouldn’t invest!)
8) Raising funds through issuing tokens
In general, there are three ways to raise funds using a token: (1) Raise money through an initial coin offering (ICO), which is like a traditional IPO but with cryptocurrency. An ICO allows you to sell digital tokens on a blockchain network. (2) Raise money by selling equity and paying back investors with dividends. In most cases, this means that your startup will be privately owned and operated by its founding team or affiliated individuals — as opposed to being acquired by a larger company. (3) Raise money through so-called equity crowdfunding, where you sell stakes in your company rather than tokens themselves.
9) Curating and owning collections of digital items
A long-standing use case for non-fungible tokens (NFTs) is collectibles, where you can own and curate collections of digital items. Maybe you want to put together a collection of your favorite artist’s work — from their studio releases to live recordings of concerts — and tokenize that into a special edition set of ERC721 tokens. Perhaps you love early 90’s hip hop or EDM? If so, you could put together some playlists on SoundCloud and issue them as an NFT token via Decentraland’s LAND platform.
10) Transferring ownership of the real estate
One of blockchain’s biggest use cases is allowing users to transfer ownership of assets like real estate. A Dutch company called De Sjriege has recently begun working on a project that aims to solve some of these problems, by introducing a platform that will allow people to sell their houses without going through a bank or broker, and connect them with potential buyers directly—thanks to smart contracts. The seller then only needs to do one thing: meet with a realtor from De Sjriege and sign over their house using blockchain technology. This means no paperwork, taxes, or long legal processes. While it might seem too good to be true, even traditional banks are starting to take note.
I hope you found these examples helpful. And if you’d like more resources and information, subscribe to our weekly newsletter, follow us on social media (Twitter / Facebook), and join our Telegram community.