Benefits of Using NFTs

The growing popularity of NFTs (Non-Fungible Tokens) in recent months has been remarkable. It’s expected that in a few years, the growth curve will continue, despite a small drop in popularity. According to the Chainalysis report, NFTs moved $26.9 billion dollars in cryptocurrency transactions in 2021. As such, the leading digital training school IEBS Business School points some trends that NFTs will face in 2022:

 

  1. Token usage will alter the most common industries:

    One of the benefits of using NFTs is that the tokens can be applied to both tangible and intangible assets. One remarkable case was in the film industry. The renowned director Quentin Tarantino auctioned off 7 uncut scenes from the famous movie Pulp Fiction as NFT. The NFTs will include the first handwritten scripts as well as Tarantino’s exclusive commentary. This content can only be seen by the owner.

  2. Metaverse Consolidation:

    It’s possible that the world will discover the benefits of using NFTs to consolidate metaverse projects during the coming months. Despite being perceived as a saturated market, investors, users, and digital creators could begin to join the metaverse trend more and more. The advantages of blockchain, cryptocurrencies, and NFTs will be offered directly within the Metaverse, removing barriers to entry.

  3. Value for Content Creators:

    The benefits of using NFTs for content creators is that it indicates if a digital asset has one or multiple owners, which is why they represent an opportunity for digital artists to have control over the rights to their creations and get higher royalties. NFTs can be applied to everything, from images, multimedia content, to even virtual terrain lots. It’s a new way to verify ownership of digital assets.

  4. New subscription models

    The benefits of using NFTs are multiple, and all sectors are looking for ways to exploit them. One possible application could be to use them as alternative subscription models. For example, the famous Time magazine is leading the way among traditional publishers in experimenting with NFTs as alternatives to digital subscription models. Their new initiative, TIMEPieces, offers NFTs from 40 different artists and makes the owner a member of the community.

  5. Advantage for Charities

    The world is beginning to understand the benefits of using NFTs, and the NGOs are not looking away from it. In fact, they are starting to see the potential to develop charitable initiatives in a decentralized and online way with less overhead compared to classic auctions. With smart contracts application of NFTs, it’s possible to create and open more charitable places. Due to these algorithms, the NFTs can be programmed to automatically transfer funds to NGOs with every transaction. The best of all is that donations made with cryptocurrencies have lower transaction fees and instant payout.

Do you already own some NFTs? Let us know on our social media channels!

Source: Digital Innovation News

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