CryptoPunks, CryptoKitties, CryptoCertificates, if you have been watching the major news outlets this past year, then surely you have come across one of the dozens of multi-million dollar animated JPGs circulating both mainstream media and investment funds worldwide. That is because these seemingly mundane pieces of art, are not simply for those with a penchant for art curation—rather they are professionals who are seeking to transform their industry in a real way.
Namely, transparency, is what NFTs are bringing to society in 2022. From Walmart investing in NFTs in order to better track their inventory to film studios like Warner Brothers and Universal who are seeking to create promotional NFTs for movie-goers. There appears to be no shortage of utility for NFTs as they make their way into everyday society.
As the world gets marked by an ever-increasing pandemic, citizens worldwide can rest well knowing that technology will transform the face of nearly every sector they can imagine. From medicine to government, global citizens can count on a more robust transparency scheme applied to all of these sectors this year.
What is an NFT and What is it Not?
First thing is first, let us define exactly what an NFT or non-fungible token is and what it is not.
An NFT is a digital ledger or token that is used to represent ownership. This ownership is public and is timestamped into the blockchain so that no one can easily change nor manipulate its information. Thus serving as a fool-proof way of demonstrating ownership of either digital assets or real-world assets like ownership of a physical piece of artwork.
What it is not: NFTs are not currencies nor can they be used as fiat. They are not the Euro, nor the British Pound or Japanese Yen. However, NFTs can be used to purchase real-world items as well as digital ones. This is because an NFT at its core is a piece of code with a unique address (where the NFT is stored on the blockchain).
This code or address can be bought or sold, traded or gifted, all depending on what the owner of the digital asset wants to do with it.
NFTs Meet the Real-World
Given NFT popularity has seen tremendous growth over the past two years, there is no surprise they are slowly but surely making their debut into the real physical world. Gone will be the days where NFTs are solely used in the gaming industry to swap and exchange gaming assets like a change of costume or a weapon.
The following are real-world examples where NFTs are actively revolutionizing both the industry and how the professionals working in it function:
Events and Ticketing
Let us use our imagination a bit here, okay? You are on your way to see Michael Jackson perform at a live concert (hologram Michael Jackson, of course). Once you arrive at the concert, you are told to show your ticket—which is an NFT. Yes, your ticket, like most tickets currently will be in the form of a digital voucher.
This digital voucher or NFT will come with promotional artwork to be kept as memorabilia after the concert. As well as exclusives, like backstage passes that will unlock if you have the VIP NFT. Additionally, all of your snacks and food will be paid for with the NFT as well. One seamless experience with one piece of groundbreaking technology.
We are already seeing NFTs effects across the entertainment industry. Kings of Leon recently released their album When You See Yourself as an NFT. Additionally, Post Malone auctioned off a game of beer pong as an NFT in 2021.
Restaurants and Dining
Gary Vaynerchuck, the CEO of VaynerMedia made headlines earlier this year by breaking ground on the very first NFT restaurant. How exactly do you incorporate dining and digital ownership? Well in a very exclusive and forward-thinking way, that is to say, that the experience will be a fan favorite of foodies. Celebrity chef Marcus Samuelsson explains that restaurants in the future will be able to offer diners entrance into the NFT restaurants if they can demonstrate they are owners of the restaurant’s NFT.
Samuelsson also goes on to explain that his restaurants will also offer NFT specials where a customer can purchase the NFT for a special dinner for four and a custom piece of artwork accompanied with the exclusive dinner.
Real Estate and Housing
The Metaverse is making headlines for the sale of the very first digital home for half a million dollars from a former financial analyst, Krista Kim. And yes, you can move into the home if you like. However, this is but one example of real estate NFTs making their way into the real world. But it doesn’t stop at the metaverse—real estate as a business is changing because of NFTs as well.
With smart contract technology, escrow accounts or third-party verifiers will no longer be necessary. Meaning, a title company or a middle-man might not be the norm in a decade or two. With blockchain technology to verify the information and release funds according to set conditions—humans will no longer be required to sign off on every step.
Thus simplifying the often complicated and complex tasks of buying a new home. Easier, more simple, and seamless will be the descriptive words of real estate in this next decade to come.
