NFTs utilize blockchain technology to prove ownership, provenance, and authenticity of digital assets. The key difference between NFTs and cryptocurrency is interchangeability; every NFT is unique and cannot be swapped for another “equivalent” asset like currencies can.  Even though NFTs are typically associated with digital art, there’s a diverse range of content out there, which we’ll explore below. 

Digital Art

Digital art is the most well-known and widely used NFT category. This takes into account anything from minted memes to animations and illustrations. NFTs allow artists to tokenize their work using smart contracts, which means they’re forever rewarded whenever the NFT sells. 

Even though the value of NFTs can fluctuate heavily - just take a look at the 2021 surge compared to now - many investors choose to buy and sell them in an effort to turn a profit. However, analyzing historical information is tricky without the help of indexers supplying aggregated NFT data. Only by accessing these tools can investors stand a chance of profiting from NFT investments. 

Profile Pictures

If you’ve been on X (Twitter) over the last few years, you may have come across CryptoPunk display pictures, which is a notorious Larva Labs collection responsible for setting off the NFT profile picture (PFP) trend. The NFT PFT trend was taken to a whole other level when Bored Ape Yacht Club (BAYC) entered the scene in 2021. As well as being used as PFP, the BAYC project allowed holders access to an exclusive offline club as well as physical goods. 

In-Game Assets

Traditional games are flooded with in-game purchases, but you can never own what you buy. This is where NFT games win the race. Using the power of smart contracts, in-game assets are stored in digital wallets and can be used, sold, or traded both natively and on external NFT marketplaces. Some of the best NFT games to get involved in right now include Decentraland, Axie Infinity, and the highly-anticipated Pikamoon. 

Music 

The music industry is in dire straits because artists are being robbed by streaming giants and Live Nation. Although not widely understood or used right now, NFTs have the power to eliminate the middleman and give power back to artists and fans. Decentralized projects like Emanate allow fans to pay for the music they want to listen to, and the artist receives 100% of the revenue. 

Metaverse Real Estate

Blockchain metaverses like The Sandbox and Decentraland have been gaining traction over recent years, and they utilize NFT technology in a number of different ways. In particular, metaverse users can buy real, trade, and sell real estate. 

This use case isn’t bound by the confines of decentralized metaverses. In the real world, smart technology is being used to create blockchain-based property catalogs, which allow investors to buy, sell, and trade without the need for lengthy processes and excessive fees. 

Identity

Verifying identity is essential in the digital world, but the current system reliant on centralized bodies isn’t secure. This is an issue that NFT technology is closing by eliminating the need for third-party entities and providing more transparency and control to users to manage their data. 

Utility

NFTs Utility allows holders access to physical or digital products or services. For example, artists can sell concert tickets through blockchain platforms. The best way to see this in action is Avenged Sevenfold, which broke new ground by selling tickets via an NFT-gated system being trialed by Ticketmaster. 

Blockchain and NFTs aren’t going anywhere, and the use cases above barely scratch the surface. As more people get educated on the technology, it will become just as common as using a contactless card at checkouts.