NFT use cases & how can you use them in your day-to-day life ?

NFT use cases & how can you use them in your day-to-day life ?
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Non-fungible tokens can be seen growing at an excellent with the growth of the DeFi sector. Many digital assets have been selling like never before since the start of this year. Crypto investors often believe that NFTs have the potential to change the entire system of investment.

Let’s understand the meaning of NFT:

At very first, it is essential to understand what exactly we mean by a Non-fungible token. A non-fungible token is nothing but a digital asset representing real-world objects, including music, game, videos and art. People can sell and buy non-fungible tokens just like they do with cryptocurrencies.

These days NFTs have become a very popular method to sell and buy digital artwork. Usually, NFTs have unique identifying codes which make an NFT for a limited run. And hence, an NFT creates digital scarcity. NFTs are popular because they allow the buyer to own an original item, and they also contain a built-in authentication serving the proof of the ownership. 

If you are confused between an NFT and a cryptocurrency, let me clear out the difference between these two. Although an NFT is also built using similar programming like that of cryptocurrency, but these both are entirely different. The critical difference here is that the cryptocurrencies are actually fungible, which means that you can exchange one crypto for another or even for fiat money. 

But, an NFT cannot be exchanged for another NFT because it has a digital signature. It is the reason for being called "Non-fungible". Also, their values are not similar to that of other NFTs, unlike the cryptocurrencies. 

Here are the top 6 use cases of Non-fungible tokens:

NFTs have gained more attention in the entertainment and art world. We often heard of many uses cases of Non-fungible tokens, including art, music, videos etc. Let's explore its use cases that should be more mainstream:

  • Gaming- It is indeed the most common use case because data suggest that more than 2 million people indulge in gaming every day. NFTs are still very far from mainstream in the gaming industry because it often takes longer to develop a game than digital art. With the more adoption of blockchain, NFT gaming can also be more mainstream in the coming years.
  • Fashion items- The combination of blockchain and fashion is a way newer thought. Blockchain has the capability to revolutionize the fashion industry as well. Here, those clothing and other fashion items can be traded as NFTs, and this merge can indeed get a broader acceptance in the future.
  • Real estate- Non-fungible tokens can provide a way to sell digital real estate in the real world. NFTs can be used to purchase the objects and can also help in identifying the original owner.
  • Documentation- Non-fungible tokens are unique, as we discussed earlier as well. This property can be very helpful in managing the personal identities that can be used for documentation and identification.
  • Real-world objects- Non-fungible tokens can very quickly be linked to real-world objects. For instance, any physical property can be transformed into digital assets that will also help identify the owner.
  • Finance- NFTs can have a crucial role in decentralized finance. Non-fungible tokens have a lot of financial abilities to provide in the DeFi space that can also help in the growth of the DeFi sector.