I love NFTs because they're a disruptive technology. I'm down to collect some simple digital collectibles from time to time, but the future requires utility.
Must Construct Additional Utility!
When it comes utility there all kinds of different way NFTs can be enjoyed beyond just a fun jpeg in your crypto wallet.
The following are some of the utility we're seeing more and more of in the NFT space, and I hope this can help you decide which NFTs you stack in your bag and which ones you best to pass on.
Ultimately the choice is yours, but at least you can be aware of what's happening in the space.
What is a Utility NFT?
An NFT assigns a use to the digital asset outside of owning a piece of artwork. A utility NFT can be where someone receives a physical piece of art that matches the NFT they purchased; it could be unique access to an event, exclusive in-person memberships, or future use in the digital world (think within a game). Source
Already we can see there's going to be a large variety of utility available out there, if not now, in the future. This is game changing technology!
While I personally do enjoy NFTs that fall into PFP and fine art, I also appreciate simple things like physical merch (hoodies/tshirts) with the artwork, and signed framed prints to hang on the wall.
Examples of NFT Utility
There's too many to mention them all in this post but I'll share a few keys ones that get my attention, and should be somewhat future proof. As always I don't have a crystal ball here.
Gaming/Metaverse - Owning assets that can be used within a game is fantastic utility. For a fun game that gives hours of entertainment, even better. I'm hoping to see more dynamic gaming assets emerge that grow and increase in value proportionate to the amount of time spent using them in game. Done with the game and not playing much, sell them for crypto.
Fashion - This can be done in a few ways. I've worked with a clothing line that used their PFP NFTs as a token gate into an exclusive hype brand clothing line. Or you can simple provide owners of the NFT an opportunity to own the art or branding on clothing as part of the drop. If the artist is dope, then I'm going to want to support them and show off the art on a hoodie.
DeFi - We're going to see more and more NFTs find utility through DeFi. This could be the actual NFT with mechanics like staking and earning, or governance. But also loyalty programs where the NFT earns rewards over time for holding and keeping it off the market. DeFi NFTs will be huge eventually, look for this category to explode at some point soon.
Virtual Land/Metaverse - If the metaverse turns out to be a widely adopted tech and space where people spend their time, you'll want to own space there to run a business, sell virtual or IRL good and services.
Lets keep this list short and sweet for now, there's lots more I could go on about but I'll save that for next time..
Keep an eye out for utility next time your scoping out a new or old collection.
Ciao for now,
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