NFTs go beyond JPEG art collections and blockchain games; this trending technology is finding innovative applications in the real world. Non-fungible tokens (NFTs) are unique blockchain-based strings of code representing digital and physical assets. While NFTs are mainly known for digital art collections like BAYC and CryptoPunks, this technology has deeper applications. Despite the general downturn in the crypto market, NFTs are holding up amidst the volatility, with new use cases emerging. Let's explore the various ways NFTs have evolved in the current market conditions of 2022.
Independent Non-Fungible Security
The luxury industry embraces blockchain technology as cryptocurrencies become a means to purchase the latest Gucci it-bag or own an NFT memento from Balmain. However, the volatility in crypto and traditional NFTs may cause brands and consumers to hesitate to use digital assets. This gives the hard luxury goods industry an opportunity to leverage its expertise and natural resources to establish a firm presence in the unpredictable blockchain world.
Yvel, an Israel-based fine jewelry house, has launched INFS (Independent Non-Fungible Security). INFS is a trading platform that combines blockchain technology with real-world, customizable guarantees in the form of unique precious stone-decorated 24-karat gold coins. This project marks Yvel’s next chapter, with the “Genesis Phase” pre-sale started on June 13, making 2,500 coins available to accredited investors.
INFS represents the next step in digital ownership by integrating blockchain technologies with a material protection layer for each digital security. On the INFS trading platform, any company can issue an INFS with customizable guarantees, offering rewards from products, experiences, subscription services, or profit-sharing.
As the primary guarantor of INFS and its platform, Yvel will manufacture the original physical INFS assets: Five thousand 24-karat gold coins with bespoke precious stone settings. Priced at $10,000 each, the first 2,500 coins will be released in a June pre-sale, allowing early accredited investors to earn up to 25% of the platform's profits and engrave the coin to their specifications.
INFS offers enticing protection guarantees and a physical representation in the form of a precious commodity. Investors and customers can hold INFS to gain profit, trade with other buyers, or redeem the coin for $10,000 worth of Yvel jewelry.
Blockchains Beyond Ethereum Are Gaining Popularity
Ethereum remains the most popular blockchain network for decentralized applications (dapps) and NFTs. However, other blockchains like Solana, Polygon, and Fantom are starting to attract project founders and developers.
While Ethereum is currently the preferred choice for NFT projects due to its popularity, first-mover advantage, and large user base, it faces several issues. One major problem is gas fees, which can soar as high as $474 when the network is congested. High demand for transactions during peak times leads miners (or validators) to prioritize transactions with higher fees, causing users to pay extra gas to expedite their transactions.
This situation often results in "gas wars," where wealthy crypto holders (whales) place very high bids for gwei (gas), causing gas fees to skyrocket. High gas fees can make it expensive for founders to set up NFT projects on the Ethereum network. Additionally, slow transaction speeds during network strain can lead to gas wars, as whales are willing to pay more to expedite their transactions.
These scalability issues have prompted the rise of new blockchains. Solana offers cheap transactions and fast speeds. Polygon is an Ethereum Layer 2 network with fees lower than 1 cent and transactions completed in minutes. Fantom has ultra-low fees with transactions that are completed in seconds.
These blockchains have seen a surge in NFT projects and dapps, with Solana surpassing Ethereum's daily NFT trading volume. Opensea has added support for Solana and Polygon networks, expanding their reach to a broader audience.
While these blockchains are primarily used for Play-to-Earn (P2E) and Profile-for-Proof (PFP) projects, they potentially have additional NFT use cases. In the future, we might see these scalable blockchains used for NFT ticketing, NFTs bonded to real-world assets such as gold, and more.
NFT Tickets for Real-Life Events
While many NFT use cases seem focused on quick profits, this technology has real-world applications. One significant use case that has gained momentum this year is event ticketing.
Events are now using NFT tickets instead of traditional tickets for entry. NFT tickets differ from traditional barcode-based tickets in several ways. Firstly, they help reduce fraud since each NFT is a token stored on the blockchain. Event organizers can issue a fixed number of tickets, and users can verify the legitimacy of an NFT-backed ticket through the public ledger.
Secondly, NFT tickets allow users to transfer ownership to another person via the blockchain, further reducing fraud. These tokens can also be sold on the secondary market, enabling organizers and sometimes the original ticket holders to earn royalties from secondary sales.
Thirdly, personalization contributes to the rise of NFT-backed tickets. Digital IDs can be assigned to ticket holders, making the tickets tamper-proof and less susceptible to theft, with all data stored on-chain.
This demonstrates that NFTs have applications beyond JPEG-based art collections and blockchain games. There are practical and innovative uses for the technology that can benefit various industries.
This year, several events have required NFT tickets for access. In May, Floyd Mayweather participated in the world's first-ever NFT Pay-Per-View (PPV) boxing match against Don Moore in Dubai. NFT ticket holders gained access to the online PPV stream to watch the fight. Another example is Coachella, which also used NFT tickets.
Conclusion
The NFT space continues to expand, bringing a wealth of new possibilities for blockchain-based technology. As time progresses, we will see more real-world applications for non-fungible tokens.
Comments