From medical coverage to credit card services, the potential of NFTs in the future

Abhay Aggarwal Founder and CEO of Colexion explains that the utility associated with non-fungible tokens (NFTs) is gradually evolving into a diverse set of use cases.

According to Vikram R Singh, Founder and CEO, Antier, there has recently been a significant increase in NFT developers switching to utility and tangible NFTs. Utility NFTs are unique digital assets that grant their owners privileges, rights or rewards that are only available to them.

Singh highlights that while tangible assets are conversions of real assets into NFTs that can be redeemed for the physical item or resold, the item is stored in the marketplace, which displays the NFT on the platform. In both cases, these tools or physical assets are cryptographically represented, and the unique digital assets are stored on a blockchain.

An example of a utility would be ‘concert tickets. The Antier founder explained that each paper ticket is extraordinary, or non-fungible, as it has its ticket number. The benefit in this situation is access to the show. Instead of giving 800 paper tickets, the show coordinator could give 800 utility NFTs. Each of the 800 NFTs will be exclusive and non-fungible; each gives its holder the same tool which is “access to the show”.

Currently, Utility NFTs are in their initial phase.

However, Singh said, “a few imaginative new use cases are consistently emerging, making it an extraordinary application of blockchain innovation universally. In the future, there is enormous potential for such NFTs, from medical coverage cards to credit cards, with NFT- holders who have the ability to get to medical services, borders or access occasions.”

“Organizations can increase deals with NFTs that can be redeemed for limits or gifts from now on by committing paper marking symbols to the set of experience books,” Singh added.

Ramkumar Subramaniam, Managing Director and Co-Founder, GuardianLink, highlighting the performance of NFTs in recent years, said, “We have to admit that NFTs made the news not because they were a technological marvel, but more because they were seen as short-term investments which would create massive profits. More often than not, the biggest marketing point for NFTs was the fact that it provided so many times the return on the initial investment over a period of time that the day of use led and the metaverse it enabled.”

Furthermore, Subramaniam said, “We always believe that even the worst things have some good in them. This has also been the case with NFTs. Since there were so many projects that were only dependent on this short-term peak, people got their much – needed enlightenment regarding investing in NFTs. We may not say that the initial NFT craze is completely dead, but we can certainly say that it has lost its original luster. This has led many brands and companies to create NFTs with real utility.”

GuardianLink co-founder believes this is the perfect time for the change in perception of NFTs. He added, “People are now starting to look beyond just pictures and stop wondering why certain pixelated pictures and certain weird pictures of anthropoid creatures sell for millions of dollars.”

NFTs became popular last year due to their unique characteristics of buying and selling digital assets in the blockchain market. Unlike regular cryptocurrencies, NFTs are cryptographic assets on a blockchain that cannot be exchanged due to their indivisibility. In simple words, NFTs are not fungible or exchangeable with any other cryptocurrency avenues.

They have cryptographic tokens. Some of the examples of NFTs are unique digital artwork, limited fashion line, in-game items, an essay, digital collectibles or tickets that provide access to an event or voucher, and even a domain name among others. Each NFT has a respective owner with a public record and is easy to verify. NFTs, provide a wider panel to content creators who can sell their work anywhere while accessing the global market.

On the other hand, cryptocurrencies are fungible and they can be exchanged or replaced with others.

Meanwhile, utility NFTs are a broader concept of NFTs with specific practical applications. They are usually developed with smart contracts and also share characteristics like immutability, transparency and security, just like all other NFTs. However, according to the Binance website, unlike regular NFTs, the core focus of NFTs is not their fundraising capabilities, but the real applications, rewards or benefits they offer NFT holders.

Even big brands have taken an interest in NFTs.

Subramaniam said, “The entry of big brands like Louis Vuitton, Bulgari, Hermès and Nike into NFTs and metaverses has also made people think about what more NFTs can be than just images. These brands are planning proper metaverse experiences, including but not limited to fashion shows, exclusive digital goods and much more.Jump.trade, through its marketplace, launched the world’s first P2E cricket NFTs which enabled you to play the Meta Cricket League and you can earn real money prizes by play the game, unlock another kind of utility.”

Speaking about NFTs as a long-term investment pool, Subramaniam said, “In all this, one thing that has remained intact with regard to NFTs is their dimension as an investment. The only difference is that instead of looking at speculative price increases as tips for investment, people have started to see long-term utility as designated. This will mean that we will see many purpose-driven NFT collectors and investors in the near future. Sometimes it is important for a technology to go through its youth in terms of perception to ensure that it ends up in an area of ​​maturity.”

Moreover, Abhay Aggarwal Founder and CEO of Colexion said, “Blockchain technology ensures that NFTs remain immutable, transparent and highly secure. Apart from their value as collectibles, NFTs give users access to benefits, rewards and real-world uses . NFTs have effectively streamlined monetary transactions and general gameplay in NFT games and the metaverse, where NFTs form the fundamental element of the ecosystem. NFTs are used as exclusive in-game assets, collectibles, or valuables that can be redeemed during play-to-earn (P2E) paradigm. This has led many traditional players to switch to NFT games. NFTs have shown potential for other extensive use cases in practical applications such as being used as digital tickets for exclusive access to special events held behind closed doors, promoting customer engagement for brands.”

The fashion and art industry has utilized NFTs through various projects. Aggarwal added, “A development in Web 3.0 and the metaverse highlights an expansion of the digital token’s utility as a medium for owning virtual property where smart contracts act as leases between users engaged in trading NFTs.”

“With such a wide range of benefits, it is indisputable that this certainly marks a turning point for NFTs,” Aggarwal added.