In this episode of Understanding Crypto, James Burtt and Paul Abercrombie discuss 16 real-world possibilities for NFTs. They look at a wide range of existing and potential uses, from fashion to decentralized financing to healthcare and education. "I think people see NFTs as a digital version of the Mona Lisa," James says, "but it's swiftly becoming the receipt you receive from Tesco's."

 

Fashion and Finance

The incorporation of NFTs into the fashion industry and DeFi organizations is an evolving practice in the real world. Many fashion brands such as Adidas, Balenciaga and Nike have released NFTs, creating a new trend in the fashion industry. Gucci has allowed customers to own their products in both the real world and the metaverse. Only Ralph Lauren's virtual presence in Roblox since 2021 rivals this achievement. The foresight to incorporate digital ownership into brand identification pays off in terms of revenue growth. Paul remarks, “90% of the new generation's wealth will be stored in digital assets, in NFTs.”

 

However, it appears that liquidating digitized assets is the preferred method for these users to obtain real-world funding. Though a few DeFi companies are already lending against NFTs, Paul and James predict that the tokenization of larger real-world assets will become a trend. According to James, “If you default on the payment, automatically without anybody getting involved, that digital asset is transferred to the lending platform.” Debt collection becomes easier and more efficient in this approach. "You could live in a world where a combination of NFTs and physical assets could work to underpin asset value," they both agree. [Listen from: 3:08] 

 

Social Media and Entertainment 

Paul feels that NFTs can be useful in a variety of social media and entertainment applications. Concert or event tickets, he argues, have the potential to become collectible NFTs and he sees the possibility for automated payment systems for workers. This eliminates the need for a middleman, allowing for more efficient revenue distribution. “Whenever a ticket is sold automatically [there is] - because of the smart contract - the distribution of revenue from that ticket,” Paul says. 

 

Another concept is digital identity where identity documents like passports and driver's licenses, are replaced with QR codes linked to NFTs. This technology has the potential to reduce inefficiency in government offices while also revolutionizing the public sector. 

 

In the social media space, NFTs can also be used to track influence and authenticate identity throughout various social media platforms. Presently, content creators are forced to spread their influence over multiple platforms. “[Influencers] could leverage that profile together, and you had an NFT and the algorithms can give you a score and say that's your influence and therefore we're going to pay you this rate of advertising,” he remarks. The intention is to provide accurate and specific information on every influencer who might want to approach a brand. 

 

Creating music around NFTs is another important application. While this is not a new notion, offering fans digitized incentive ownership through NFTs can drive communal involvement to new heights. “I think the way in which we buy music, the way we interact with music and the way royalties are distributed is going to change over the next 3-5 years,” Paul and James argue.  Smart settlements can also be used to automate royalty payments and equalization across the board. [Listen from 11:10]

 

Endless Possibilities for NFTs 

NFTs can be utilized in the healthcare sector to facilitate the transmission of medical files between geographical locations through blockchain technology. Paul also discusses further possibilities for blockchain-based supply chain management, which is currently being used by major corporations. He believes that NFTs, in the form of a blockchain-based delivery note, can be provided to clients as proof of digital trust. James says “I think people are seeing NFTs as a digital version of the Mona Lisa; however, it's very quickly becoming the receipt you get out of Tesco's ”. Paul agrees and explains that NFTs could also be used to store your educational records as well as your digital CV. “ It would speed up the hiring process and transform all of that stuff,” says James. 

 

Another intriguing potential is the use of NFTs as membership cards for physical and digital clubs, which would provide gatekeeping capabilities to clubs and creators in secondary markets. Paul also envisions an NFT-based loyalty program with transportable digitized assets linked to a point system that can be redeemed or exchanged between platforms. "Because there are so many different types of smart contracts and blockchains," Paul continues, "it's difficult to be portable across all of them." Despite this limitation, he predicts NFT technologies will have a promising future. Paul feels that the establishment of NFTs product warranties has potential, and that they should be used as proof of purchase, minted on the blockchain and stored in your digital wallet. They both agree that technology breakthroughs are required for some of these concepts to be realized. [Listen from 22:34]

 

Key Takeaways

• NFTsare likely to become as common as a receipt in the near future.
• NFTs can be used in a variety of existing and potential sectors, ranging from fashion to DeFi to healthcare and education.

 

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram