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 Real-World Uses for NFTs

 Real-World Uses for NFTs

 Real-World Uses for NFTs

 Real-World Uses 
for NFTs

NFTs are no longer just a pixelated profile image. NFTs now have utilities and can have real world value in several different industries.
30 NOVEMBER 2022
A non-fungible token, or NFT, is a special kind of blockchain token by definition. In contrast to fungible tokens like BTC, ETH, or SOL, each NFT is unique and has a different token.

Thus, NFTs—which frequently have accompanying metadata connected to them, such as an image, video file, or document—can be used to demonstrate the originality or uniqueness of something. Depending on the issuer and the related metadata, NFTs can demonstrate ownership of either a digital or physical asset.

NFTs on the Ethereum blockchain are also referred to as ERC-721 tokens, although NFTs in various forms are also present on the Solana, Avalanche, Cardano, and Tezos blockchains.

Applications of NFTs

Despite the claims of NFT detractors that such tokens are not necessary, NFT holders have access to a wide range of use cases.

Digital scarcity and distinctive, verifiable IDs are established by NFTs. It may feel as though digital assets are worth less in our increasingly digital environment simply because some of them are simple to copy and recreate. NFTs, however, can identify which digital asset is the original, acting as a certified painting in a room full of copies.

NFTs may also permit owner self-custody, which allows the owner to maintain complete control over their digital asset without having to rely on a web server or third-party middleman for custody alternatives. The adage "not your keys, not your crypto" in the world of cryptocurrencies refers to the notion that the only way to truly "own" any digital assets is by maintaining full control over one's private keys and keeping one's digital assets in a software wallet or hardware wallet that is kept under one's own supervision.

Interoperability, often known as asset transfer across platforms, may also be made possible using NFTs. In a prior interview with Decrypt, former Amazon Studios executive and metaverse author Matthew Ball stated that there is "definitely value there" in NFTs and that they are the most "viable a solution for virtual commodities [as] we've seen" in terms of technology. NFTs were created to provide a completely new understanding of what it means to "possess" digital goods.

NFTs in Movies

NFTs have been embraced by Hollywood and the indie cinema sector for a variety of reasons. As consumers switch from physical disks to digital-only files and streaming, large traditional studios and streaming platforms like Paramount, Warner Bros., and Lionsgate see NFTs as a new source of revenue for their established intellectual properties (IP) and declining home entertainment industries.

With its experimental "Lord of the Rings" NFTs that unlock bonus features and a copy of the movie, effectively replacing the DVD with an NFT, Warner Bros. is rethinking its vision for the future of home entertainment.
Netflix's NFTs for "Stranger Things" took a different tack. The streaming service made the decision to reward players for finishing each week's online games with digital NFT posters of the show's stars.
As the greatest names in Hollywood begin to dabble in NFTs, some are charging fans for the digital treasures while others are making the process more engaging for gamers.
However, not all film NFTs are meant to be promotional or commercial; others are attempting to make them revolutionary. Niels Juul, an independent film producer who worked on Martin Scorsese's "Silence" and "The Irishman" projects, views NFTs as a method to support films that otherwise wouldn't be made.

Juul earlier said in an interview with Decrypt, "I know so many excellent screenplays that are laying there not getting done at sort of 10, 15, 20 million dollars because studios are looking at Marvel stuff, franchise stuff."

Juul founded NFT Studios and KinoDAO, the latter of which enables NFT buyers to have an influence on various filmmaking decisions and gain special token-gated access and benefits, in an effort to finance the tiny and mid-budget films big studios won't approve.

Bryan Unkeless, co-producer of "The Hunger Games," is in a comparable predicament, but he wants to use NFTs to finance and build a following for his next multimedia project "Runner." Before tackling any other types of media formats, such as a TV show or video game, Unkeless and his crew are concentrating first on lore and the creation of a "Runner" comic book.

The "Runner" team can develop a community and get direct fan feedback thanks to NFTs while maintaining the creative autonomy they desire.

In a recent interview with Decrypt, Unkeless said, "The difficulty with a lot of Web3 projects is that they have incredible visuals and even fantastic world-building, but they don't necessarily yet have the overarching concept and architecture that lends itself to multiple mediums."

"What we hope is that we have enough knowledge and expertise from games, film, and television that we know what works there," the statement continues. But not only Hollywood filmmakers are developing NFTs because they like the technology's promise. Celebrity actors like Scott Eastwood and Anthony Hopkins have also become involved with NFTs. Eastwood recently told Decrypt in an interview that he plans to similarly distribute NFTs of himself for his biggest admirers. Hopkins' collection of Ethereum NFTs that feature him in a variety of roles sold out in a matter of minutes.

Although it may appear that Hollywood is embracing Web3, not everyone is confident that the industry is on board just yet. In May 2022, "Runner" actor Bryce Anderson claimed on Twitter that Hollywood wasn't prepared for the transition. "Is the movie business prepared to accept NFTs? They're not, Anderson affirmed. "Many groups won't even accept superheroes, streaming, or digital cameras. However, whatever appeals to the public will eventually appeal to Hollywood.

Music NFTs

Many musicians, including DJs Steve Aoki and 3LAU, think that the current structure of the music business has to be changed. The amount of overall royalties that artists receive from songs that are streamed is quite tiny, therefore they frequently feel under pressure to go on tour and do live events in order to make ends meet.

As traveling was rendered impossible during the pandemic, artists began to turn more and more to alternative forms of remuneration. Producers and performers of electronic music, who spend their days in front of a computer, have started to investigate NFTs and their potential to offer 
a more direct link to fans independent of the major record labels.
In fact, the internet was stunned when Aoki admitted at a Gala Music event in February 2022 that he had made more money from NFTs than through a decade of musical advancements.

"However, if I were to truly break it down, in the ten years I've been creating music, I've released six albums, and when you [combine] all those advances, I made more money in one drop last year in NFTs. Aoki added, "And I was also far more insane with music.

Aoki's statement did not come as a surprise to anyone working in the music business. A major driver behind the creation of electronic musician and DJ Justin "3LAU" Blau's Web3 music platform Royal, which enables musicians to control their own music and distribute portions of the music rights to paying fans through NFT sales, is the issue of artist royalties.

Tycho and Illmind, two other musicians, want to use NFTs as type of "tickets" to their private societies.
 Tycho earlier said of Web3: "I'm not looking at it [...] as this utopian vision that it kind of was being pushed as at the beginning." But I do believe it's another tool in the artist's toolbox, so whenever we have any additional leverage, I believe that will change the power balance in some way.
Electronic musicians are by far the most likely to join NFTs than musicians from any other genre, it has become evident. According to Audius' research, hip-hop and electronic music artists are the most well-liked on its site.

Electronic musician Dillon Francis previously stated to Decrypt that "most electronic music musicians are always aiming to be on the cutting edge of whatever's occurring in technology." “Electronic music is not dependent on Billboard Top 10 songs, as you may know. We depend on our music being played in festival or club circuits and word-of-mouth on blogs, so that's another reason why this Web3 culture and community is so fascinating to us,” added Francis.

NFTs in Style

In the midst of the metaverse craze of 2022, a number of high-end fashion labels unveiled NFT collections of wearables or visual art, some of which were also linked to physical assets in the real world. NFTs and Web3 appear to be being used by several high-end designer brands to target the younger generation of digital natives.

250 limited-edition NFTs linked to Yuga Labs' Crypto Punks were released by Tiffany's. Punks owners might turn their pixelated avatar into a genuine Tiffany's jewelry by paying 30 ETH.

Gucci has purchased property in The Sandbox and participated in Roblox. Additionally, it introduced its own NFTs and announced in May 2022 that certain of its stores would accept Bitcoin and ApeCoin as payment methods.

In a similar vein, NFTs have been welcomed by Prada, Givenchy, Balmain, Dolce & Gabbana, and Balenciaga as a digital channel for product revenue, however, few have openly addressed employing NFTs to authenticate real items.

Adidas, Nike, and Puma are all sportswear and streetwear brands that have entered the Web3 market. After acquiring RTFKT, Nike published various sneaker NFTs, some of which were connected to actual sneakers. Adidas is releasing smart wearables with the Adidas logo and is associated with Yuga Labs. Additionally, Puma acquired its .eth Ethereum Name Service (ENS) name and subsequently introduced Puma-branded metaverse wearables.

In relation to .eth names, the online retailer Farfetch also purchased its name and is focusing on Web3 and NFTs on social media.

Gaming NFTs

In the traditional gaming sector, NFTs have raised a lot of controversy. While some businesses, such as Valve (of the Steam store) and independent game developer Aggro Crab Games, have angrily rejected the notion of creating games with in-game assets and cosmetics as NFTs, others, such as Ubisoft, Take-Two, Epic Games, and Square Enix, have embraced it.

Although Electronic Arts has adopted a moderately upbeat attitude, it doesn't seem that the company is now actively working on or pursuing NFT projects. Microsoft's position on NFTs is conflicted; the tech giant forbade third-party NFTs from being used in "Minecraft," yet the blockchain lead said that Web3 and cryptocurrency are a part of the company's larger "portfolio." Additionally, Sony filed NFT-related patents for its gaming division in 2021, suggesting that it is researching in-game NFTs.

Gaming NFT proponents assert that games with NFT assets give players an opportunity to make money from their time while also feeling more in control of their accomplishments and digital assets. Others claim that NFTs are unnecessary and that players may already sell their accounts on a variety of online markets.

In-game NFTs received so much criticism prior to the Ethereum Merge that GSC Game World and Team17 scrapped their plans to implement them in subsequent games. A new class of games featuring NFTs at its core has evolved despite the fact that traditional game producers' views on NFTs in games have varied. Web3 games with the idea of in-game assets as NFTs at their core include Axie Infinity, Splinterlands, Alien Worlds, and Big Time.

Other gaming businesses have embraced Web3 in an effort to update and digitize their brands. In order to sell Web3 game NFTs through its platform, physical store GameStop established an NFT market and partnered with ImmutableX, an Ethereum-compatible blockchain.
In conclusion, NFTs are being adopted across the board and in many industries, and it is just going to keep growing as people start realizing their worth.
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