Author: Bob May 02, 2023 9 min read
From virtual real estate to digital shoes, NFTs are revolutionizing the way we think about ownership in the digital realm. But as the market for these unique digital assets heats up, it’s important to understand what they are, how they work, and what impact NFTs have on various industries.
In this article, we will answer these hot questions and also explain why NFT design services will be in special demand in the upcoming years.
So, let’s get started by explaining what is NFT and how it works. The trick is that, despite being a buzzword, some business owners still struggle with understanding NFT’s meaning, and that’s why they can’t leverage its benefits in full.
As you may know, NFT stands for “non-fungible token.” By the way, have you collected stamps or stickers in your childhood? I bet you did, and if so, understanding what’s an NFT will be as easy as pie for you. Think of it like a special sticker that only you have. In addition to being exceptionally yours, it also proves that you own a certain digital thing.
Now, we have an NFT explained, but what differentiates it from other cryptocurrencies? The answer refers us to the non-fungibility of this precise token. An NFT is a unique and singular digital asset that cannot be replaced by another one. It can only be exchanged for a certain amount of cryptocurrency. Cryptocurrencies, on the other hand, are fungible assets that can be exchanged one for another without the loss of value. The non-fungible nature of an NFT is the key reason why they have become the main tool to prove ownership and authenticity. And recently, NFT crypto art has become especially popular.
In 2021, the NFT art market surpassed $40 billion. Statista also projects that the revenue in the NFT segment will reach $1,601.00 million in 2023, with an expected annual growth rate of 18.55%, resulting in a projected total amount of $3,753.00 million by 2027. So, the market for NFT digital art is thriving and growing. No wonder both NFT artists and businesses are appreciating the benefits of this unique technology.
Non-fungible tokens are a game-changing technology in the field of art. Below are the main advantages of NFTs for artists and businesses.
After the benefits of NFT art become clear, let’s proceed with overviewing the industries that NFT is going to revolutionize.
Since this industry is on the verge of art and technology, there are a lot of use cases of NFT. So, what does NFT stand for in gaming? This technology provides players with unique and valuable digital assets that they can collect and trade — an NFT game art can represent a valuable collectible, like a weapon or skin. For example, the game Axie Infinity allows players to create digital creatures represented as NFTs and then manage them as needed.
In addition, gaming NFTs can represent a certain achievement, like winning a tournament and owning it will prove a high status of a gamer within a community. An NFT art token can also be used to prove the ownership of virtual real estate within the game. In such games as Decentraland, gamers can create and develop their own virtual sites, represent them as NFT, and trade them further.
The NFT use cases in this industry are no less fascinating than in gaming. First, NFTs can be used to represent virtual fashion items (that by the way, the heroes of games can wear, including even those created by Balenciaga). There are also virtual fashion houses like The Fabricant which create limited-edition clothing in the form of NFT.
An NFT art token can also be used to prove the authenticity of a fashion item. In this way, the customers who are buying luxury items can be sure that they are genuine and track their ownership history. For instance, recently Gucci partnered with a blockchain platform to create NFT tokens right for this goal.
And here is another outstanding example of how NFT can deliver a unique customer experience. Not long ago, Louis Vuitton created an NFT that gives its customers exclusive access to a virtual tour of its collection.
In the music industry, digital NFT art works in the same way as in fashion and gaming. Musicians can use it to create unique collectibles and memorabilia, in addition to proving their ownership of a certain song or instrumental piece. Using NFTs also eliminates fraud and helps to make sure that the composer or artist is properly compensated. For example, electronic music artist 3LAU tokenized versions of his album “Ultraviolet,” which were then sold as NFTs for over $11.6 million.
While real estate seems to have nothing in common with crypto NFT art, this technology is especially promising for selling and buying property in a more secure and transparent way. For example, NFT tokens can be used to track the history of the property, verify its rightful ownership, find out whether there was a legal dispute around it, and pay for the property in the most secure way possible.
To date, NFT isn’t largely adopted in this industry because of the lack of regulation. However, the technology has the potential to revolutionize the way real estate assets are bought, sold, and traded in the future.
Last but not least, let’s answer the question “How does NFT work in the sports industry?” Similar to the way it delivers value in the gaming and fashion industries, non-fungible tokens can be used to provide virtual and exclusive access to sports events. NFT tokens can also represent a digital ticket, or a sports club membership, and be even used to prove the ownership of a sports team. Furthermore, NFTs can be used in online sports gaming, such as fantasy sports. For example, Sorare is a popular fantasy football game that incorporates NFTs into the gameplay.
Given the rising popularity of NFT arts and their diverse use cases across industries, the demand for NFT design services is growing too. But which of them will be extremely popular this year?
It would be safe to project that creating virtual and augmented reality experiences will be an especially demanded NFT design service because of the growing popularity of AR and VR technology and their large adoption by different industries. Because of the growing gaming industry (which is projected to reach $546 billion by 2028), developing game-related NFT digital art will also be popular.
In addition, non-fungible tokens can be utilized to enhance video marketing. For example, you can make an animated character and represent it as an NFT. There is also an opportunity to use NFT to provide the users with access to exclusive content, like behind-the-scenes footage, or create limited edition video content.
The rise of NFT art opened up a new world of opportunities for the digital art industry, and video production isn’t an exception. By creating an NFT video, you can provide unique and verifiable proof of ownership for your digital content that can be bought and sold, opening up the potential for monetization. Leveraging NFT design services is also promising for providing your customers with exclusive content access and outstanding experiences, so don’t miss out on this exciting new trend in video marketing.
If the opportunities NFT opens for video marketing sound promising to your business, consider getting in touch with NFT designers and artists today!