NFT Real-Life Use Cases – Decrypt

An NFT, also known as a non-fungible token, is a unique type of blockchain token by design. Unlike fungible tokens like BTC, ETH or SOL, each NFT is individual and has no identical token.

Thus, NFTs can be used to prove the individuality or uniqueness of something – and usually has associated metadata associated with it, such as an image, video file or document. NFTs can prove ownership over a digital or physical asset depending on the issuer and associated metadata.

NFTs on Ethereum are also known as ERC-721 tokens, but NFTs are also found on other blockchains such as Solana, AvalancheCardano and Tezos in different formats.

Use cases for NFTs

While NFT critics may argue that such tokens are unnecessary, NFTs can provide a number of different use cases for their holders.

NFTs establish digital scarcity and unique, provable identifiers. In our increasingly digital world, it can feel like digital assets are worth less simply because some can be easily copied and reproduced. But NFTs indicate which digital asset is the original—like a certified painting in a room full of duplicate prints.

NFTs can also allow owner self-custody, meaning that the owner of said NFT is able to retain full possession of their digital assets without having to rely on a third-party intermediary or web server for custody options.

In crypto, the phrase “not your keys, not your crypto” refers to the idea that the only way to truly “own” digital assets is by retaining full sovereignty over one’s private keys and storing one’s digital assets in a self-contained software wallet or hardware wallet .

NFTs can also open up new avenues for the transfer of assets across platforms, also known as interoperability. Former Amazon Studios head and metaverse essayist Matthew Ball previously shared Decrypt in an interview that “there is clearly value there,” when it comes to NFTs, adding that as a technology, NFTs can scale with a growing metaverse and are the most “viable solution for virtual goods [as] we have seen.”

By design, NFTs enable a whole new perception of what it means to “own” digital assets.

NFTs in film

Hollywood and the independent film industry have adopted NFTs for a variety of reasons. For example, major traditional studios and streaming platforms such as Paramount, Warner Bros. and Lionsgate NFTs as a new source of revenue for their established intellectual properties (IP) and declining home entertainment industry as consumers move away from physical discs towards digital only. files and streaming.

Warner Bros. reimagines its vision for the future of home entertainment with its experimental “Lord of the Rings” NFTs that unlock special features and a copy of the movie, essentially replacing the DVD with an NFT.

Netflix took a different approach with its NFTs for “Stranger Things.” The streaming platform decided to give away digital NFT posters of the show’s stars as rewards for completing weekly online games.

As Hollywood’s biggest players dip their toes into the world of NFTs, some fans are charging for the digital collectibles while others are gamifying the experience.

But movie NFTs don’t have to be commercial or promotional – some are trying to make them revolutionary. Independent film producer Niels Juulwhich produced Martin Scorsese’s films “Silence” and “The Irishman”, sees NFTs as a way to finance film projects that would otherwise not be made.

“I know so many great scripts that are out there that don’t get made for like $10, $15, $20 million because the studios are looking at Marvel stuff, franchise stuff,” Juul previously said Decrypt in an interview.

In an effort to finance the small- and medium-budget films big studios won’t greenlight, Juul created NFT Studios and KinoDAO, the latter of which allows NFT buyers to have a say in various filmmaking decisions and receive exclusive token-gated access and rewards.

“Hunger Games” Co-Producer Bryan Unkeless is in a similar situation – but wants to use NFTs to both finance and create fandom around an upcoming multimedia project “Runner”. Unkeless and his team first focus on the lore and development of a “Runner” comic before tackling other types of media formats such as a TV show or video game.

NFTs allow the “Runner” team to have the creative control they want without gatekeepers while building a community and getting feedback directly from fans.

“The challenge, frankly, from a lot of Web3 projects is that they have incredible visuals, and they even have great world-building, but they don’t necessarily have yet the overall concept and construction that lends itself to different mediums,” Unkeless previously told Decrypt in an interview.

“What we hope is that we have enough knowledge and experience from film and TV and games that we know what works there.”

But Hollywood producers aren’t the only ones creating NFTs because they like the potential of the technology. Celebrity actors such as Anthony Hopkins and Scott Eastwood have also entered NFTs.

Hopkins’ collection of Ethereum NFTs depicting him in various roles sold out within minutesand Eastwood told earlier Decrypt in an interview that he similarly plans to release NFTs of himself for his biggest fans.

While it may seem like Hollywood is leaning into Web3, not everyone is sure the industry is on board just yet. Bryce Anderson from “Runner” wrote on Twitter in May 2022 that Hollywood is not ready for the change.

“Is the film industry ready to embrace NFTs? No, they are not,” Anderson so. “A lot of corners won’t even embrace streaming, superheroes or digital cameras. But anything that works for audiences will eventually work for Hollywood.”

NFTs in music

Many musicians, such as DJs Steve Aoki and 3LAU, believes that the traditional music industry model needs an overhaul. Artists see a very small percentage of the total royalties earned from songs that are streamed – and therefore often feel pressured to tour and play live shows to make ends meet.

During the pandemic, touring became impossible, and artists increasingly looked to other methods of income generation. Electronic music producers and artists – who work with computers all day – have begun to explore the world of NFTs and their potential to provide a more direct connection to fans without the major labels.

Actual, Aoki’s confession during a Gala Music event in February 2022 that he has made more money from NFTs than from a decade of music advancement shocked the internet.

“But if I were to really break down, OK, in the 10 years I’ve been making music … six albums, and you [combine] all those advances, what I did on one drop last year in NFTs, I made more money. And also, I was much more detached from music,” Aoki said.

For those in the music business, Aoki’s statement was not surprising. The problem of artist fees is also a main reason why electronic artist and DJ Justin “3LAU” Blau started his Web3 music platform Royalwhich allows artists to own their own music and distribute percentages of music rights to paying fans through NFT sales.

Other musicians, such as Tycho and Ill mindwant to use NFTs as “tickets” to their exclusive community.

“I don’t look at it […] as this utopian vision that it was sort of highlighted as in the beginning,” Tycho earlier told Decrypt by Web3. “But I definitely think it’s another tool in the toolkit of artists, so anytime we have any other kind of influence I think it’s going to shift [the] force dynamic somehow.”

What has become clear is that electronic artists are far more likely to enter NFTs than any other genre of music. Audious’ data found that electronic and hip-hop artists are the most popular on the platform.

“Most electronic music artists are always trying to stay on the cutting edge of what’s happening in technology because we make music on our computers,” former electronic musician Dillon Francis. told Decrypt.

“Electronic music doesn’t depend on, you know, Billboard Top 10 hits. We rely on our songs being played on festival circuits or club circuits, and word of mouth on blogs … so that’s another part of why this culture and community of Web3 is so interesting to us,” said Francis.

NFTs in vogue

Amidst the metaverse hype of 2022, many luxury fashion brands launched NFT collections of visual art or digital wearables – and these NFTs were sometimes connected to real-world physical assets as well.

Some high-fashion designer brands seem to be using NFTs and Web3 as a way to appeal to the younger generation of digital natives.

Tiffany’s launched 250 limited NFTs linked to Yuga Labs’ Crypto Punks. For 30 ETH, Punks holders could see their pixelated character transformed into a reality Tiffany’s necklace.

Gucci bought land in The sandbox and has also been active in Roblox. It also launched its own NFTs and said back in May 2022 that it would accepts Bitcoin and ApeCoin as payment methods in some of its stores.

Similarly, Prada, Givenchy, BalmainDolce & Gabbana and Balenciaga have also embraced NFTs as a digital avenue for product revenue, although few have publicly discussed using NFTs as a way to authenticate physical goods.

In the streetwear and sportswear area, Adidas, Nike and Puma have all taken the plunge into Web3. Nike bought RTFKT and has published many sneakers NFTs, sometimes associated with physical sneakers. Adidas is also connected Yuga Labs and lets go digital wearables with the Adidas brand. Puma also bought its .eth Ethereum Name Service (ENS) name and has since launched Puma-branded metaverse wearables as well.

Speaking of .eth names, online e-commerce site Farfetch also bought its name and is leaning towards Web3 and NFTs on social media.

NFTs in play

NFTs have caused quite a stir in the traditional gaming industry. While some companies like Ubisoft, Take-two, Epic gamesand Square Enix have embraced the idea of ​​developing games with in-game assets and cosmetics such as NFTs, others such as Valve (of Steam large) and independent developer Aggro crab game have strongly rejected them.

Electronic art has taken a modestly optimistic stance, but does not appear to be actively developing or pursuing NFT games yet. Microsoft’s stance on NFTs seems mixed, like the tech giant’s prohibited third party NFTs in “Minecraft”, but have one blockchain lead who suggested that crypto and Web3 are part of the company’s broader “portfolio.” And Sony appears to be exploring in-game NFTs, as it filed NFT-related patents for its gaming division in 2021.

Proponents of NFT gaming say that gaming with NFT resources is a way for players to monetize their time and feel a greater sense of ownership over achievements and digital assets. Opponents argue that players are already selling their accounts on various marketplaces and believe that NFTs are simply not necessary.

Before the Ethereum merger, there was so much backlash around NFTs in the game GSC Game World and Team 17 canceled NFT plans for upcoming titles.

While traditional game developers have taken different stances on NFTs in games, a new class of games has emerged with NFTs at the center. Web3 games such as Axie Infinity, Splinterlands, Alien Worlds, and Big Time are examples of titles with the premise of in-game assets such as NFTs at their center.

Other gaming companies have jumped into Web3 to modernize and digitize their brands. Brick and mortar retailer GameStop created an NFT marketplace and partnered with ImmutableX, an Ethereum-compatible blockchain, to sell Web3 gaming NFTs through its platform.