A non-fungible token (NFT) is an asset that represents something unique which means that it is not replaceable. This makes it perfect for many use cases and applications on the blockchain. For me, the top 3 are:
- Certificates: The fields that handle certificates often face several issues, frauds being the most sever. Non-fungible tokens (NFTs) can help introduce new trustless systems and efficiently reduce friction. We can store all kinds of certificates, from ISO documents to academic credentials as NFTs. From there, institutions can build new systems or upgrade the existing ones.
- Collectibles: By far, this is currently the most popular use case for NFTs, kicked off by CryptoKitties. NFTs can represent either digital of physical collectibles. Once tokenized, they can be used in different models. Collectibles can represent in-game items (like a sword in a game) or players within a fantasy football game. The options are pretty much endless.
- Digital art: Digital art is the growing field of digital media that can significantly leverage the NFTs for their unique digital representations on the blockchain. This way, the market can leverage a more robust control over ownership and provenance of an artwork. New user experiences can spring from this model and further expand this field in the public. Similarly, in the real-world art market, an NFT can become an ownership certificate for a specific piece of fine art.
A question for you guys: Which industries should be tackled by Non-Fungible tokens?