ChainIDE#30 The main utility of NFTs in real life
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ChainIDE#30 The main utility of NFTs in real life
A few years ago, no one could have imagined that it has turned into an era where everything is NFT. NFT can capitalize virtual items; linking with offline entities can help traditional enterprises quickly enter the metaverse; while maintaining the scarcity of assets, it can also separate control and editing rights... The above functions have made NFTs popular rapidly , now there are countless new NFT projects coming out every day.
But for the NFT owner (HOLDER), the utility of the NFT is the biggest incentive to buy and hold a specific NFT item.
The main utility of NFTs
1.Artistic utility
The value of NFT artwork is based on its cultural influence and significance. A "good" piece of art will demonstrate mainstream values, ethical standards, and inspire members of the community. Women Tribe, 3Landers, and Doge Pound Studios are three NFT projects that are fundamentally driven by positive mainstream values, a community vision, and an impactful desire to uplift society.
This particular type of NFT audience will pay more attention to the NFT's artwork than the community or usability. Therefore, the value is also placed on a trusted artist or a trusted company. Market behavior is similar to that of traditional art collectors with a collecting hobby. These collectors appreciate art and don't trade their work very often, so they're not interested in applied value.
2.Social utility
The spring of 2021 saw a rapid shift in digital identity. A growing number of Twitter accounts have turned their avatars into cartoonish apes. When NBA players and numerous A-level celebrities entered the NFT market, BAYC gathered millions of ETH trading volumes on Opensea, the NFT secondary market platform.
The success of BAYC and other NFT-generating projects can be attributed to the smooth landing of their products and meeting the community's need for social utility. Powered by blockchain technology, the indestructible uniqueness of NFTs lays the foundation for meeting individuals' needs for socialized digital identities.
NFTs are a balancing act between individualism and collectivism. The BAYC community fulfills individuals' desire for an exclusive community while maintaining a platform where their community can freely express their individuality, freedom and value allegiance.
3.Functional utility
1)In-game NFTs
Game features: According to the actual game experience, players can choose to pay for game features, and have low expectations for future returns.
Emotional attachment: The impression that in-game NFTs are used for game activities rather than financial products provides players with emotional projection, especially when players spend resources to upgrade NFTs and spend time fighting with NFT characters. Such predictions further reduce users' expectations for future returns.2)Music NFTs
Music NFTs allow fans to buy songs, albums and event tickets. They also provide artists with more on the profitability of their names, likenesses, images and artwork.
3)DAO NFTs
Basic structure of NFT for DAO membership: —> Governance —> Token Distribution —> Pass Certificate
DAOs are speculated to be the manifestation of the next generation of companies that provide a new form of organization for coordinating global investments and communities. Today, many DAO organizations are emerging. In terms of governance, many forms of NFTs will be used, with functional NFTs being a possible example.
DAO members can make governance contributions to the development of DAO through the NFT they hold. Members who have made outstanding contributions can also receive DAO Token airdrops. At the same time, DAO NFT will also play its governance role as the pass of the DAO system.
4.Asset utility
Under the financial nature of cryptocurrencies, NFTs have specific asset properties. The market price volatility they magnify is one factor that affects their actual value. Derived from many variants of financial applications such as trading, lending, splits, and ETFs, NFTs can integrate complex financial contractual relationships. As such, NFTs have become trusted financial investments that represent ownership in the cryptocurrency world, with guaranteed rights stored in smart contracts.
Discuss:
1.Which utility of NFT do you prefer? Can you tell me why?
2.The integration of NFT utility will also multiply the value of NFT, do you know any cases?
Further reading
2.Why is the blockchain an important underlying technology of the Metaverse, and what can it bring?
Welcome to join discussion~
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In the realm of NFTs, their significance extends beyond the digital realm. This post beautifully outlines the main utility of NFTs in real life scenarios, showcasing how they're revolutionizing ownership and authentication. As an enthusiast of innovative technology, I'm excited to explore more about this from sources like Vector Mod APK.
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