In the past year, the NFT market has undergone significant changes, from its explosive growth in 2021 to its maturation in 2022 due to a bear market. While collectibles and large-scale PFP projects that once dominated the market have cooled off, other use cases have begun to hit their stride. In 2023, we can expect to see a number of robust NFT use cases that could potentially change the metaverse as we know it.
NFT TICKETING
One of the most underrated sectors of the NFT market is NFT ticketing. Considered a benefit to the future of live events, NFT ticketing offers tickets in the form of an NFT on a blockchain. This enables ticket issuers to record attendance numbers while simultaneously interacting with ticket holders in new and innovative ways via NFTs. Attendees of events that don't issue NFT tickets can also be rewarded after the fact with Proof of Attendance Protocol (POAP), which provides many of the same benefits as NFT ticketing.
Use Case Example:
Instead of traditional ticket resale methods, where tickets are often sold at inflated prices on third-party platforms, NFT ticketing can offer a more equitable solution. Each NFT ticket could have a built-in smart contract that allows for a certain number of resales at a capped price. This not only ensures that ticket holders can sell their tickets at a fair price but also prevents scalpers from buying up tickets and reselling them at exorbitant prices. In this way, NFT ticketing can revolutionize the ticketing industry by creating a fair and transparent market for event tickets. In addition to providing access to an event, the NFT ticket can also serve as a tool to track attendance and participation at various activities within the event. Each time an attendee participates in an activity, they can scan their NFT ticket or enter a unique code to earn a POAP badge. These badges could then be redeemed for exclusive merchandise or experiences, such as a meet-and-greet with a performer or a backstage tour of the event. This not only incentivizes attendees to engage with the event but also creates a sense of community and shared experience among attendees. It also provides event organizers with valuable data on attendee participation and engagement, which can inform future event planning and marketing efforts.
NFT MEMBERSHIPS
NFT-based memberships have grown and developed alongside PFP projects, but they've since become their own unique sector of the NFT market. Brands and programs utilize these types of NFTs as access keys to unlock incentives and rewards for their holders. Membership passes can be enforced via "token-gating," which uses blockchain technology to verify ownership of an NFT and grant holders access to member-exclusive perks. Projects like LinksDAO and Flyfish Club remain among the most ambitious membership endeavors.
Use Case Example:
One creative use case concept for NFT memberships is creating a decentralized loyalty program. Instead of traditional loyalty programs that are managed by a centralized authority, NFT memberships can offer a more democratic and decentralized approach. Each NFT membership could represent a certain level of loyalty or engagement with a brand, and as members reach certain milestones, they can be rewarded with exclusive perks or experiences. For example, a fashion brand could offer NFT memberships to its customers, and as they make more purchases, they can level up to higher tiers of membership, each with its own set of rewards. These rewards could include exclusive access to limited-edition items, personalized styling consultations, or even VIP invitations to fashion shows. By leveraging the blockchain technology, NFT memberships can create a transparent and secure system for managing loyalty programs, while also incentivizing customer engagement and loyalty.
PHYSICAL TO DIGITAL
Phygital goods, which are a melding of physical and digital, have become increasingly popular in the NFT space. Wearables, in particular, have emerged as one of the most popular use cases. Companies like 9dcc and RTFKT continue to produce NFT-powered shoes, shirts, and other fashion items. Investment giants like Gmoney and fashion powerhouses like Nike are keeping an eye on phygital goods, making it a sector to watch out for in 2023.
Use Case Example:
Development of Web 3-powered NFT ecosystem for collectibles that are tied to digital assets. Instead of limiting collectors to only physical or digital collectibles, NFTs can offer a way to combine the best of both worlds. For example, a toy company could create a limited edition toy line and offer each toy as both a physical toy and an NFT. Collectors can purchase the physical toy and receive a corresponding NFT representing ownership of the toy. The NFT can then be traded or sold on digital marketplaces, allowing collectors to buy, sell, and trade their collectibles securely and transparently. On the other hand, digital artists can also create NFTs that represent their digital artwork and offer a physical version of the artwork as an added perk for collectors. This not only expands the potential market for artists and collectors but also creates a new ecosystem for collectibles that bridges the gap between physical and digital worlds.
SOULBOUND TOKENS
Soulbound Tokens (SBTs) are NFTs that are non-transferable, making them ideal for managing permanent records. Designed to function as a comprehensive suite of tools for online users to preserve and protect their identity, SBTs could provide a better way to verify vital information on the blockchain. Through SBTs, medical records, academic achievements, alumni status, employment histories, criminal records, and everything in between can be minted as an NFT with immutable and non-transferable ownership.
Use Case Example:
One creative and highly useful Soulbound Token (SBT) use case idea is using SBTs for secure and decentralized management of medical records. SBTs can provide a way for individuals to store and manage their medical records on the blockchain in a way that is transparent, secure, and non-transferable. Each person can mint an SBT that represents their medical record, which can be stored on the blockchain and accessed only by authorized parties. This can streamline the process of sharing medical information between healthcare providers and ensure that the information is kept secure and private. Additionally, SBTs can enable patients to have more control over their medical data, allowing them to choose who has access to their records and how the data is used. By leveraging the blockchain technology, SBTs can revolutionize the way we think about medical records, offering a more secure and efficient solution that empowers patients and protects their privacy.
ARTIFICIAL INTELLIGENCE
Finally, artificial intelligence (AI) has become a hot and contentious topic in the NFT space. Numerous prominent artists in the NFT space already use AI collaboration in their workflows, but the ethics of creating and selling AI art has been questioned. AI-created work currently lacks the "human authorship" needed to bestow rights intended to protect the artist. As AI advances in 2023, we can expect further debate and discussion surrounding AI art.
Use Case Example:
AI-assisted music NFTs is a good use case concept that can be explored by innovators. With the rise of AI-generated music, artists can integrate AI-generated music into their NFTs, creating a new type of digital asset that combines music and art. By using AI algorithms to generate and evolve music over time, NFTs can become dynamic and unique, increasing their value and appeal to collectors.
While these five use cases are undeniably prominent within the NFT space, it's important to note that they are not the only areas of innovation. Other new projects could appear and shift the ecosystem even further. However, these instances of NFT innovation have brought the conversation surrounding the usefulness of blockchain technology in modern society from niche to mainstream.