are a broad category of tokens issued by individuals and communities. The term encompasses other similar terms such as community token, creator token, and personal token. Social tokens
enable creators and communities to have more ownership of their content and can represent anything from a person’s time to collective ownership of a community to specialized access.
, a crypto social network NFTs are used to build Creator Coins that represent a popular celebrity such as Elon Musk, and the value of these coins fluctuates based on whether that celebrity does something positive or negative with their content.
E-commerce is also one of the areas in which NFTs can thrive. In an era dominated by giants such as Amazon exploiting their market power, a decentralized ecosystem powered by NFTs could place the power back into the hands of consumers and businesses.
, a blockchain-based inventory platform, is at the forefront of this movement. Splyt’s eNFT (e-commerce NFT) tokenizes off-chain products on the blockchain, creating a universal, standardized protocol for how data and funds are shared securely between all parties in e-commerce transactions.
is another startup working in this space. The startup has developed a blockchain protocol that has been designed to exchange digital value for real-world products.
is often seen as a byzantine market and one that requires a lot of trust as important documents are often forged. But all that can change with the implementation of NFTs, which can be used to trace and track ownership and authenticity of the digitally represented asset from anywhere around the world.
is a US-based proptech startup revolutionising home purchases globally by deploying smart contracts on the blockchain.
Virtual real estate is another area that is fast gaining mainstream acceptability. According to one report
, the global augmented, and virtual reality market is estimated to reach US$ 571.42 billion by 2025, growing at a CAGR of 63.3% from 2018 to 2025. In the spring of 2019, Estate 331
, nicknamed “The Secret of Satoshis Tea Garden”, a virtual
land in a digital world that can only be visited through a computer sold for around US$ 80k. Fast forward to 2021, and a plot of land on the Axie Infinity
gaming and virtual real estate platform has sold for a staggering US$ 1.5 million. This trend is only set to accelerate further.
There’s also another category of NFTs known as “actual value
” NFTs because their value is tied to specific off-chain assets. These NFTs could represent ownership in anything from a contract conveying ownership and royalty rights of a song to even real estate, cars and other physical assets. These NFTs can be thought of as being similar to stablecoins, as stablecoins backed by US dollars held by the issuing company makes their value relatively stable.
As AR, VR, spatial computing and the direct to avatar economy collide, NFTs will probably be one of the ways that we will conduct commerce in the metaverse. These are just some of the industries that NFT is disrupting but in the next few years, it can revolutionize how we transact, interact and own assets and may become an integral part of our lives.