What can NFTs be used for? In this post, we explore the uses, purposes and types of NFTs. Scroll down for a full size downloadable image.
Table of contents for how to use NFTs
NFTs for DeFi
NFTs within the area of decentralized finance are used in various ways. Read the article Top 9 DeFi Categories, Types and Applications.
NFTs are used for staking in multiple ways. Foremost NFT staking refers to locking up non-fungible tokens in exchange for staking rewards. It allows owners to earn passive income from a certain platform or protocol while maintaining ownership. You also see it some blockchaim games. Read more about NFT staking here.
NFTs can be used in liquidity farming -providing money or liquidity so efficient trading can find place- in various ways. Currently, we are seeing it mainly for ‘boosting’ tradepairs and/or getting temporary higher rewards from proving liquidity in a farm pool.
NFTs can be used to distribute royalties within the sphere of DeFi.
NFTs for Gaming
Digital Worlds (Metaverses)
Can be virtual ground or other objects. See plenty of metaverses. The role of NFTs in a metaverse can of that in the context of virtual marketplaces. Sellers can create assets and mint them as NFT for sake of security and other pro’s.
NFTs, items that exist outside of a game and can be linked to other games, can be used or digital artworks can be put in virtual art galleries.
New Standalone Games with Tradable Assets
For example you can use the NFT you received when you bought your new gym sneakers to put them on your character in-game.
Traditional Games with Tradable Assets
Traditional sports and games can be enriched by NFTs, for example by capturing an exciting moment or a ‘player’. We already see this with officially licensed NBA TopShot and UFC Strike.
Play to Earn
Check out PlaytoEarn.net and more on our Tools Page.
NFTs for Crowdfunding
For Existing NFT Projects
If you know about a project that uses NFTs to make a positive social impact and a future-proof difference, let us know.
How to use NFTs for Collectibles
NFTs for Art
Many digital pioneers use generative art to create NFT collections. See Popular NFT Artists for some examples.
Digital and Digitalized photography can be protected by chaining it to a NFT in such way ownership can be proven.
Tokenizing Physical Work
Physical works can come with an informative/supportive NFT.
NFTs for History
Capturing Historical Artifacts
Using the blockchain, uneditable timestamps can be created to capture place and time of found historical artifacts.
Retroactively Crediting Creators
How to use NFTS for Communities
NFTs can be used to express oneself in the community it is related to. Think about linking your NFT to use it on social media like Twitter and Instagram.
Think about NFTs as a membership pass. Its possession grants access to certain locations or privileges. Each non-fungible token can be programmed to have different tiers, can or cannot be made tradable et cetera. A good example is the membership of a private restaurant, as spoken about in the article NFTs as a VIP Membership: How does it Work?
Creative ideas can be exercised with NFTs in the world of business and networking. Think about business cards for example.
How to use NFTS in the Physical World
Events and Ticketing
Last Updated on 24/10/2022 by delta