11 min read
10 Useful NFT Applications that Will Change Society in the Next 10 Years
What is the future of NFTs? What will our daily lives look like when NFTs go mainstream? In this short article, we will dive into the 10 practical uses of NFTs in the current decade.
By: Khristian Flohr
We now have a way to demonstrate ownership of digital assets thanks to non-fungible tokens (NFTs). Institutions, businesses, and organizations continue to use NFTs as a vehicle to raise cash after they become widely popular in the last two years. Without question, major brands, businesses, and even governmental organizations recognize the advantages of utilizing blockchain technology. We have seen tech giants such as Apple, Twitter, and Meta, joining the NFT train. NFTs attracted the interest of investors and creators in the last years, growing to a $40 billion market. It is estimated that by 2030, that number will surpass $230b. NFTs are without a doubt a significant development in the tech sector, and the technology seems very promising.
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The truth is… it’s still very early. Only 1% of people on the planet own an NFT. NFTs will probably experience numerous trials, failures, and mistakes before the technology gets widely used because it is still new territory. To put it into perspective, there were 28.6 million active wallets trading NFTs during the height of the previous bull market. That's 0.03% of the total population at most (probably even less, considering that some users have multiple wallets).
NFTs resemble a loving relationship. We are in the "rainbow and butterflies" stage because it is still very young. The potential of this technology has us, the NFT enthusiasts, completely fascinated, and occasionally we are unable to perceive its negative aspects. Just like in a relationship, love won't be enough when the excitement wears off and reality sets in. We require a deeper reason for maintaining the relationship. A reason for keeping it, embracing it, and incorporating it into our daily life. The same is true for NFTs. They require practical, real-world use in order to stay relevant once the initial excitement has passed.
The value of an NFT is directly dependent on its utility, or in other words, its primary benefit of owning it. The few NFT projects that offer answers to issues we face on a daily basis will ultimately push this technology toward mainstream use.
We will experience the true potential of NFTs the moment they become a social need rather than a luxury or a hobby.
Market analysts predict that it could take up to ten years for them to become a regular part of our lives. However, given the exponential rate of growth of the digital world, it might happen much sooner and this technology might advance more quickly than we anticipate. It is crucial to have a macro perspective of where NFTs stand right now and what applications are connected to them until that time.
10 Useful NFT Applications That Will Change Society in the Next 10 Years
1. Authentication of Documents
Our society is moving away from paper at an increasing rate. In the past ten years, digital documents, digital signatures, and online receipts have all gained enormous popularity. If properly deployed, blockchain technology and the veracity of legal documents have a bright future. The official documentation will move along more quickly, more effectively, and certainly more transparently. In a recent case, a U.K. judge authorized the delivery of lawsuits through NFT Airdrop. Imagine that national identification cards and passports are completely digital assets kept in the blockchain. In that case, it would be simple to link our identities to official records, such as a marriage certificate that is stored as NFT and accessible to the public through your official digital ID.
2. Access Passes & Ticketing
Like peanut butter and jelly, event ticketing and NFTs complement one another. Finally, industries like aviation, corporate events, and the entertainment market can rely on a safe, open system that gives them better control over tickets, access credentials, and memberships. We will eventually be able to purchase tickets in the form of NFTs with ease by utilizing our smartphones.
Consider Real Madrid, one of the biggest soccer organizations. Due to the strong demand for their tickets, they are relatively expensive, and fake tickets and scams are an issue when buying tickets in the secondary market. In the future, a team like Real Madrid may offer tickets in the form of NFTs, allowing customers to authenticate them in the blockchain and prevent fraud on secondary markets. In addition, the club may impose a 2% royalty on each sale made on the secondary market as a result of smart contracts. By doing this, the club will perpetually earn an extra 2% in royalties for each ticket that is transferred to a new owner. This creates a whole new source of income that is not conceivable without NFTs.
3. Non-Transferable NFTs
Academic document authentication has great potential for NFTs that cannot be transmitted from wallet to wallet. Universities will someday be able to award a complete academic degree that is not transferable to another person in the form of NFT. Its authenticity is publicly in the blockchain and acknowledged by other institutions. Maybe one day we'll get to see a web 3 version of Linkedin where experts may publicly display their accomplishments in NFTs.
4. Attendance Proof
Using the Proof of Attendance Protocol (POAP) NFT, you can demonstrate that you were present at a live event or online experience. The main goal of POAP NFT is to demonstrate that individuals took part in particular academic courses, business seminars, or even sporting events, to name a few. Proof of attendance will eventually be assumed to be normal. We'll use passes it as a requirement for attending real events, where attendees might be asked to scan their smartphone for a digital ID at the entrance of events. They will automatically receive a certificate of attendance in exchange, which may or may not be transferrable to other individuals. The technology used will be an NFT, but most people won't even notice it.
The validity of physical and digital assets is one of today's main issues. The cost of counterfeit goods is expected to surpass $3 trillion. For this technology to succeed in the long run, physical assets must be tokenized, and NFTs serve as the link between the physical and digital worlds. We shall be able to determine whether a pricey piece of jewelry is real or fake in the upcoming years. Blockchain technology may be used by large luxury brands in their supply chain to track inventory and the release of physical collections. NFTs, which are digital certificates of ownership, may be used by jewellery manufacturers to sell their products. Physical goods will also be able to be purchased in-store using cryptocurrency wallets, and the receipts will be stored electronically.
6. Identity Confirmation
Providing evidence of ownership is directly linked to one's identity. Thanks to the transparency of NFTs we can easily identify the owner of a particular asset and the price at which it was purchased. Intellectual property, patents, and trademarks will be connected to individual digital IDs once the blockchain becomes commonplace. Legal paperwork is currently costly, ineffective, and frequently highly bureaucratic. Let's take real estate as an example. Let's imagine you decide to buy a nice apartment. Using your cryptocurrency wallet, you will be able to pay the entire price at once and quickly receive the NFT legal certificate proving your ownership of the property. Regulation will make transactions easier because governments will be able to confirm that you are the rightful owner of the property.
7. Politics & Voting
The voting process is often ineffective, dishonest, and even corrupt. When individuals visit the voting centers, voters must have a photo ID and proof of residency with them. NFTs can aid in solving this issue by giving those without physical identification documents a digital identity that demonstrates who they are and where they reside in the country. The voting process will be facilitated and more transparent as a result of having an authentic digital ID recorded in the blockchain and legally recognized by their municipality. NFTs will reduce fraud and act as a record of who voted and what they voted for. Most people won't even be aware that they are actually using the blockchain and NFTs as the use experience will be simplified.
Decentralized autonomous organizations (DAOS) have grown in popularity as a form of government as a result of the blockchain. There is no central authority in a DAO; instead, token holders who cast a group vote on a particular decision are given power. The course of a project will be determined by a consensus among the token holders of a particular organization, and this will eventually become the standard for governing projects, businesses, and even political parties. In the future, countries may potentially be administered as DAOs, becoming more decentralized and distributing power among individuals.
8. Logistics & Supply Chain
Logistics is about keeping track of assets, and the blockchain is the ideal solution for a fully transparent and efficient supply chain. Companies are continuously adopting NFTs to keep track of their physical inventory. Eventually, we will live in a time where product data, tracking numbers, and logistics are fully managed on the blockchain. With NFTs, companies can issue smart contracts linked to cargo and delivery services, resulting in a fully transparent and traceable record of every item in the supply chain, from raw material to end user. All this data will be essential to increasing productivity and efficiency related to logistics and transportation on a global scale.
9. Real Estate
Non-Fungible-Tokens' ability to be linked to high-value physical assets, such as residential and commercial real estate, is one of their most appealing features. The paperwork, permits, notaries, and several intermediaries, including banks and agents, are among the major issues we have in the real estate industry. Something that could be simplified into the a single transaction involving two parties, entails numerous additional cost. By completing a simple transfer of ownership in a single transaction, NFTs will facilitate the purchasing or selling of physical properties.
In the real estate sector, the term fractionalization will spread widely. Let's use a straightforward example to explain how fractionalization works. Assume, that you have decided to invest in the Real Estate market, and you want to buy a beautiful villa on the beach for $1M dollars. Let's say, you decide to ask four of your friends to help you in purchasing the villa because you do not have enough cash. The property can now be divided into five $250K NFTs for a total of $1M. By doing so, you can become an owner without having to pay for the full property yourself. In other words, it made the real estate market more affordable for others to enter!
Additionally, if you all decide to buy out one of your pals in the future, you can do so by acquiring their NFT. The building can also be rented out, providing passive income that is distributed equally among all token holders. The Blockchain could store all ownership and property history, which would be publicly verifiable. Future developments using NFTs in the real estate sector have the potential to have a major impact on the global housing market.
This is a big one. The market cap of the gaming sector is reportedly $70 billion. That doesn't include the use of NFTs. By adding monetization and tracking of digital game assets, the gaming sector will be one of the main areas where NFTs will affect the most in the upcoming ten years. The gaming sector may see the quickest adoption rates among younger ages and future generations.
In-game rewards like Play-to-Earn programs are becoming more popular in developing nations. No matter where they are, players may now make money playing games thanks to NFTs. This provides millennials in poor nations with enormous opportunities. There are instances where players make more money than that a full-time salary, in developing countries.
How to profit from NFTs in the next 5–10 years?
- Learn more. Before the technology is widely used, there are still many lessons to be learned, and we are still figuring out the best uses of NFTs. In the long run, it will be beneficial to learn and investigate new subjects when a new technology is still being developed. Getting educated and keeping up with market developments is one strategy to ensure that you profit from technology in the coming years. Twitter is a great resource for keeping up with current business trends. Or, you can follow us at Flagship, and we'll make sure you receive the latest information (wink).
- Gain experience by exploring. People with experience and a track record of adapting will gradually hold the top roles in web 3 organizations as the blockchain evolves. In the NFT sector, the experience will be incredibly useful. The time to learn is now when this technology is still in its youth before it becomes widely used and you lose your competitive advantage.
- Create and release your own NFT! Seriously. Doing is the best way to learn. Starting a personal collection will provide you with a wealth of knowledge on NFTs. Open an account on OpenSea.io, upload a couple of your favorite pictures, and convert them into NFTs to get started. It's an easy method to become familiar with the fundamentals of NFTs and will help you to see some of their potential applications. The lessons learned might one day pay off when that excellent business idea pops into your mind!
- Join a group. Being a part of Web 3 will show you new ways in which businesses will be run in the upcoming years as the technology matures. Most significantly, it will put you in a setting with bright people, causing you to gain many new talents from other people that will extend your horizons. You will discover the necessary job tools for the industry.
Before being widely adopted and assimilated into daily life, NFTs still have a long way to go and lots of space for evolution. The true potential of NFTs won't become obvious until such applications are useful in the real world and serve a purpose or satisfy a social need. We must go through a lot of growth, labor, sweat, and tears until then. But being early will eventually pay off.
That's all for today! We'll see you again at the next one!
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