What separates NFTs worth over $200,000 from just another file that anyone can right-click and save? The same thing that makes a Louis Vuitton or Gucci bag worth more than the counterfeits they sell on Canal Street in New York: People will know if it is false or true.
Just like we can spot the thin, cheap materials and sloppy stitching on a counterfeit handbag… Platforms like Twitter (NYSE:TWTR) can check the Ethereum (CCC:ETH-USD) blockchain, review your proof of ownership via your MetaMask, Trust Wallet (CCC:TWT-USD), or another crypto wallet, and verify that you have an NFT profile picture.
Of course, you can right-click save and publish a no-verified profile picture. But since each NFT is unique (“non-fungible”), people will know if you really own that Bored Ape you post, or just make fun of Justin Bieber.
In the new digital world, that digital “certificate of authenticity” on the blockchain, proving that you own it, has a lot of use. out of art. Below are three of the most interesting use cases.
There is no doubt that NFT markets have issues to deal with as they grow and mature. But for every bad press involving NFTs, there are as many promising projects as you can NOT you’ve heard of…yet. We’ll take a look.
NFT tickets and benefits for events
Buying tickets online can be more convenient, but there’s usually a catch. Several of them, in fact, totaling a ton of hidden fees…with no discernable purpose other than to further enrich companies like Ticketmaster! The tweet below from Roots Michael Harriot is satirical but also extremely close to everyone who has used Ticketmaster:
On blockchain platforms like Yellowheart, you can buy an NFT ticket instead, and only 5% of what you pay is the “side grab” – the other 95% goes to the artist! The smart contract behind the NFT can also be programmed to avoid ticket resellers and counterfeiters.
Ticketmaster, it seems, sees the implications and made a small concession to them: Super Bowl LVI attendees on Sunday received “a free, personalized NFT” on the Polygon (CCC:MATIC-USD) network. Every NFT feature[ed] their unique section, row and seat to commemorate game day, providing a digital keepsake of their Super Bowl experience.
It was just a “digital ticket stub”… But Goldenvoice, which hosts the Coachella Valley Music & Arts Festival every April, seems to be flirting with the prospect of switching to NFT tickets on the Solana (CCC:SOL-USD) blockchain through the FTX crypto exchange.
If you watched the Super Bowl, you’ll remember that FTX ran one of the crypto commercials, “Don’t Miss Out on Crypto” with Larry David. FTX founder Sam Bankman-Fried is something of a crypto influencer — and a major supporter of Solana, with its faster and cheaper transactions compared to the big dog, Ethereum.
With the help of FTX, Coachella hasn’t quite ditched traditional tickets just yet – but it do offer 10 lifetime passes, represented by the digital art of the keys. Each key also came with a whimsical perk package, like ‘all-inclusive dining experiences’ – and Coachella made almost $1.5 million auctioning them off earlier this month!
It’s not just gigs: musicians themselves can also cut out the middleman and bring their work directly to fans via NFTs.
John Legend helps launch one such platform, OurSong, which aims to ensure that “everyone can now turn stories, music, photography, and all kinds of art into NFT trading cards.”
OurSong’s NFTs (minted on Ethereum) are called Vibes. And they’re more like joining a fan club than just buying a song from iTunes: “Vibes lets you unlock exclusive updates and access private chat communities where you can meet other like-minded people. same ideas,” says OurSong.
For fans of artists, but not necessarily crypto (yet), OurSong aims to make it easier to engage with NFTs on its platform. You can “bid on Vibes directly in USD, which OurSong then converts to Ether and exchanges for an ERC20 token”, Forbes reports.
But will these NFT music platforms win the musicians so easily? Well, early adopters like Steve Aoki are certainly proud of the benefits:
“In the 10 years I’ve made music…six albums, and you [combine] all these advances, which I did in a single drop last year in NFTs, I made more money.
-Steve Aoki, DJ and crypto entrepreneur
Music contracts with traditional labels are generally disadvantageous for artists, if not exploitable. Everyone is streaming their music these days…and on platforms like Spotify (NYSE:PLACE), creators usually earn pennies per stream (if any!)
Instead, NFTs allow musicians and other creators to directly monetize their fan base. In turn, as fans, we can stream NFT music directly; no need for Spotify, Apple Music or any other premium service that hardly benefits our favorite artists.
NFT to cars and houses
To all those who still claim that “NFTs are worthless”, I would simply say: how about an Alfa Romeo?
The iconic Italian luxury car brand has just released its first ‘electric-adjacent’ model, the Tonale – a plug-in hybrid crossover SUV – and every Tonale comes with its own NFT.
Now many other companies are jumping on the NFT bandwagon as, simply, a marketing ploy…
Alfa Romeo, however, uses NFTs for their real value: data on the blockchain. Specifically, ownership and maintenance records for each car will be stored in the NFT. No more spending $40 every time you want to view a vehicle history report on CarFax. Just take the Alfa Romeo back to the dealership for service, and they’ll save all the data in its NFT.
“This will ultimately help to increase the residual value,” according to AutoEvolutionwhen you go to sell the car to its next owner.
With the right legal framework in place, it’s not hard to imagine getting the title to a car through a blockchain transaction as well.
In the meantime, you can even to buy a house on the blockchain these days! That’s exactly what one homebuyer did last week, spending 210 ETH (worth $654,309 at the time) to buy this five-bedroom Spanish-style home in the beach town of Gulfport. , in Florida.
By winning the auction for this Florida home, the buyer will now “own the property through a limited liability company (LLC) that houses the NFT,” reports blockages“which reduces the closing time”.
The deal was done through Propy, whose first NFT real estate auction was for the Kiev, Ukraine apartment of TechCrunch founder Michael Arrington. “More properties to come – the next property is a condo in Tampa,” Propy’s website reads today.
I expect that one day many homes, cars, event tickets and musical works will be minted as NFTs. While it’s hard for most of us to imagine dropping six or seven figures on art of any kind, let alone a Bored Ape or CryptoPunk… It’s beautiful to imagine eliminating third-party intermediaries – with all their added costs and hassles – by stepping into the future of NFT.
You’ll start to see this kind of news more and more, and we’ll continue to bring you the most interesting use cases here on New Digital world.
Contributing Editor, The new digital world
PS Would you like to see what bitcoin OGs are buying today? One of them, Charlie Shrem, did his “next big crypto exchange” on video. This way you can get the full effect of what Charlie calls “an opportunity that I think could be 544 times bigger than bitcoin”. Click here to see the whole thing.
As of the date of publication, Ashley Cassell had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines. To get more news from The New Digital World delivered to your inbox, click here to subscribe to the newsletter.