One of the few things that have captured the hearts of people over the course of civilization is things that make room for convenience. That is, whichever innovation is aiding them to have less effort but more productivity becomes the ‘IT’ item. On that line, one of the terrific innovations that go beyond human imagination is the introduction of the crypto world, where normalcy is different, appearing with the face of decentralization.
Enough beating around the bush! You must all have heard about the reiterating technological advancement that is creating history. The commerce field is seeing new bloom with cryptocurrencies, blockchain networks, and of course, the inevitable Non-Fungible Tokens. Long story short, they are collaborative with large verticals like sports, arts, music, and many others. However, the recent hype seems to be pointing towards one domain particularly, and that is Gaming Domains, the Play-To-Earn NFT Gaming marketplace.
What is the Play-to-Earn mechanism?
The play-to-Earn mechanism allows the user to enjoy his e-gaming spree, all the while raking in profits with the in-game assets. The web3 game’s infrastructure is made so that the user can gain access to several rare digital assets and cryptocurrencies through these Web3 games, which may be skins, arsenals, characters, and so on.
Now that we have a better understanding of how the theme goes, let us get a bit more deeply into the game utility NFTs.
Utility NFTs – The Next Big thing
Anything that is valued by money, in this case, cryptocurrencies, they have to have some utility, that does wonders in favor of the user. Utility NFTs represent the perks and opportunities that are open for the NFT holder in the market. That is, the utility NFTs open up a wide range of access to other NFT-based applications, which helps the value of the asset to be appreciated over time.
With blockchain technology in hand, the utility concept is not a new one. In fact, the NFTs are in themselves a representation of various artworks that range from domain to domain. This created endless possibilities for the NFTs and their holders to earn millions of dollars using the gaming NFT marketplaces and other alternatives.
Features of Utility NFTs
These Utility Tokens are minted and are transformed into digital form, making them immutable.
The blockchain technology on which the NFTs have stored records all the data of the asset, and hence they are easily trackable.
They are created using the smart contract that will automate all the transaction processes or any activity made on the marketplace.
NFTs have multiple utilities, and it leans more toward the application of refreshing technology. One of the examples for the Utility NFTs would be if a game NFT is bought, the user can possess not only the digital representation of the asset but also the physical limited edition of the utility NFTs.
List of NFT projects that will profit from Utility NFTs
Gaming Utility NFTs
The best industry today, as established earlier, is the gaming industry. With metaverse entering the talks, their already profiting play-to-earn NFT gaming marketplace allows the NFT enthusiasts can own a wide range of utility NFTs, like genres, role-playing Web3 games, RPGs, and so on. The passive income earned with these NFTs also enables the user to have authority even offline. Also, with the Metaverse industry joining hands with the gaming NFT marketplace, the utility of the in-game assets extends to the physical world. For instance, if the NFT is an arsenal, the user can gain ownership of its physical correspondence.
Real-Estate Utility NFTs
Two of the renowned projects that are creating a frenzy in the market for all of its real-estate NFTs are Sandbox and Decentraland. These virtual lands, owned via Utility NFTs, allow the NFT holders to profit from a variety of services. That is, these smart contracts formed assets represent the in-built real-estate NFTs that are tamper-proof and decentralized trading experience. These Utility NFTs of virtual land can also be owned in the real world, making them profitable both in cryptocurrency and fiat currency.
Ticketing Utility NFTs
What pops up when you think of tickets? Waiting in the never-ending queue, the mini panic attack that follows the lost ticket before the event?
With Utility NFTs, you can now gain numerous benefits promoting high-end security, which can be accessed digitally. Additionally, the ticket is integrated with QR codes, unlike paper tickets. Since these Event Ticket NFTs are rare and limited, the buyer or the holder of the asset can have easier access to VIP-only communities, interaction with similar interested users, etc.
Elite Examples of Utility NFTs in the market
GainForest
GainForest is Switzerland-based Internation Non-Profit Utility NFTs. These NFTs form the platform to protect the environment and humans in their own way, allowing the users to donate to the organization. This, in return, gives them access to the corresponding real location of the rainforest NFT owned, along with the capacity to mint governance tokens with these NFTs, etc. Gain Forest Utility NFTs have a significant perk as they allow the holder to track the health and condition of their rainforest easily.
Doodles
Yes, the Doodles is an NFT project with as many as 10,000 collectibles that represent unique artworks that are hand-drawn. These broke out very much instantly as soon as they got launched. These NFTs are characters, and the holder of these Utility NFTs receives the opportunity to vote. This means the DAO-based platforms where the user can exercise his authority will take immense importance in any future NFT releases or events.
Closing Thoughts!
The creation or the purpose of Utility NFTs is in nascent stages, despite all their futuristic opportunities. It is a known fact that the NFT is an entity that grants the creator the proof of ownership of the asset, making them more rare and unique. With eye-catching aesthetics and lucrative visual arts integrated into these NFT collectibles, the utility NFT, in the near future, will be used in multiple use case scenarios than we have discussed above.
For instance, the current germinated concept of Utility NFTs can replace traditional event tickets, the healthcare industry, and several other documentation and loyalty cards. Bewildered? Now all businesses can ally with NFTs, incentivizing their sales multiple folds!
