In March 2021, non-fungible tokens became a popular talking point across the internet, after Beeple’s First 5000 Days became the world’s most expensive NFT.
Selling for $69 million, the online discussion took off, with brands and media personalities creating and selling their unique NFTs. In just one month in 2021, over 1.5 million NFT art sales were recorded and sales exceeded $250 million.
But beyond being interesting digital art pieces, what are the best NFT use cases, and how can you optimise your investment?
Understanding NFTs: A Quick Refresher
NFTs, or non-fungible tokens, are unique digital assets. Unlike cryptocurrencies, NFTs are one-of-a-kind, earning a valuable use for representing unique items. By storing the ownership data on the blockchain, the transparency, security, and authenticity are unlike many digital assets.
This distinguishable factor is where many find the allure of NFTs, but the purchase process, authentication, and selling to a new owner can be more complex.
Key Characteristics of NFTs
Non-fungible: This means that each NFT is unique and cannot be replaced with another identical one. This is unlike fungible assets like dollars or Bitcoin, which can be exchanged on a one-to-one basis.
Tokenised: NFTs are tokenised on a blockchain, which is a decentralised digital ledger. The token represents ownership or proof of authenticity of the underlying asset.
Blockchain-based: Blockchain technology provides a secure and transparent way to record and verify NFT transactions. It ensures that NFTs cannot be duplicated or altered, making them tamper-proof.
The Role of Blockchain
The blockchain is not controlled by a single entity or authority. Instead, the data is distributed across many different computers around the world. This makes it very difficult for anyone to tamper with the information stored on the blockchain.
This technology acts as a digital lockbox that keeps NFTs safe and secure – a measure which makes it incredibly difficult to alter the NFT.
Trust, permanence, and proof are key factors that have allowed over 10.3 million people to become NFT owners, as of 2022. By the end of 2024, there are a projected 16.84 million owners of NFTs, a 212.43% increase from the 5.34 million owners recorded by the end of 2021.
Beyond Art: 6 Real-World NFT Use Cases
There is a strong case for purchasing NFTs for their artistic value. Many designs are meticulously crafted by digital artists and can represent specific interests or hobbies.
However, there are many real-world uses for NFTs. Going beyond the digital assets, tangible benefits can be found across six different experiences…
1. Gaming and In-Game Items:
NFTs can be found in video games as valuable in-game assets represented by unique additions. By providing players with true ownership and control over these assets, they’re able to own and trade their items independently of the game itself.
These NFTs are especially popular due to their scarcity, and the opportunity to earn real-world value as a result of playing video games.
This model has already secured success, highlighting its best NFT use case, with popular games such as Axie Infinity and Decentraland providing players with new experiences.
2. Real Estate and Property Ownership:
NFTs could revolutionise the real estate industry by enabling fractional ownership and providing a more secure and transparent way to manage property records.
Fractional ownership is a key aspect of this opportunity – a single property can be divided into smaller, more affordable units to allow investors to own a piece of the property.
As an NFT real-world case, this would reduce the barrier to entry and can be adapted to suit varying risk appetites and increase liquidity across the real estate market.
NFTs can also be used to store and manage property records to reduce the likelihood of tampering and fraudulent activities, whilst optimising the process of transferring property titles and lease management.
3. Intellectual Property Rights:
Another NFT real-world case is their potential for managing and monetising intellectual property rights.
Creators can tokenise their original content, including music, videos, and written works, as NFTs, allowing them to retain ownership and receive royalties whenever their creations are bought, sold, or used in commercial ventures.
The traceability through the blockchain also opens the door to a unique opportunity to track the usage of the NFT, ensuring fair compensation and protecting it against piracy.
Artists across music, videos, written works, and physical art would have greater control over their intellectual property, to a level of detail that has never been seen before.
4. Ticketing and Event Management:
NFT real-world use cases even extend to the ticketing and event management industry.
Event organisers can tokenise tickets as NFTs, making them unique and verifiable. Once created, a smart contract automates the sale, transfer, and refunds.
Expertly taking advantage of the blockchain’s transparency and authenticity, the events space can offer customers a secure, transparent, and efficient solution to counterfeit tickets and false limitation-induced price gouging.
Ticketmaster has experimented with using NFTs for ticketing, and POAP (Proof of Attendance) uses NFTs to create digital badges for event attendees to verify attendees and unlock exclusive benefits.
5. Supply Chain Management:
Globalisation has led to many business opportunities but has also left them vulnerable to risk that is often difficult to trace.
Supply chains are often subject to interruptions and delays, leaving many businesses without stock or supplies. Over time, this can create a ripple effect that can lead to a domino effect of bad debt and insolvencies.
One study highlights how supply chain disruptions cost an average of 6-10% of businesses annual revenues.
NFTs can significantly improve transparency and traceability in supply chains by providing a secure and immutable record of product history. This can give businesses a clearer view into the reputation of a supplier to avoid counterfeit goods and identify efficient lines of supply.
VeChain is a clear example of this opportunity for business owners. This blockchain platform uses NFTs to track products throughout the supply chain. This can be used to verify the authenticity of luxury goods, pharmaceuticals, and food.
6. DMMC: NFTs with Real-World Value
NFT memberships are the solution for high-net-worth individuals seeking a new way to access high-class, premium experiences.
These services are focused on granting access to an exclusive community, so members can truly enjoy events, experiences, and privileges that are unavailable to the general public.
As with all other NFT-based services, luxury concierge services through NFTs are built on the decentralised and secure blockchain network, ensuring that ownership and authenticity are verifiable.
This transparency provides access into these facilities without the fear of criminals taking advantage through fraudulent activities and counterfeit products.
There is also an investment opportunity, as NFTs can potentially appreciate over time, providing an additional benefit beyond the exclusive services.
Drunken Monkey Members Club – The Best NFT Use Case
Creating personalised, luxury concierge services through NFT ownership, Drunken Monkey Members Club offers a dedicated concierge team through the world’s safest and most transparent process.
By offering a unique combination of exclusive travel perks, luxury concierge services, and access to activities, DMMC has elevated NFT use case from a digital asset to a tangible experience.
Using a variety of connections with key players in the hospitality industry, DMMC has partnerships with luxury hotels and resorts. A variety of upgrades are offered to members across upgrades, complimentary meals, flexible use of facilities, and paid-for services.
For the day-to-day, reliable and professional concierge services are on hand to support members with whatever life throws at them. From property management to event planning, and even personal shopping, DMMC members have the luxury of time and peace of mind.
Across these experiences, the complex elements of NFTs are made clear and easy to understand thanks to DMMC’s dedicated resources including expert guidance, insights, and assistance in navigating the digital asset space.
Beyond the Perks: Become a Member Today
To unlock a world of limitless possibilities and join DMMC’s exclusive community, simply purchase your NFT today.
Don’t settle for the ordinary. Ascend to a life of unparalleled privilege. Join DMMC Today.
