Former Google engineer tells you which 15 fields NFT can be used for

Original title: "The REAL use cases of NFTs: A Visual Exploration》

Original author: shivsakhuja @Magik Labs

Original compilation: Peter Pan

Have you heard of the technology maturity curve, also known as the Gartner hype cycle.

In 1995, Gartner Consulting, based on its analysis forecast and inference, combined the The speed of maturity evolution and the time required to reach maturity are divided into 5 stages: the early stage of technology birth, the expansion period of high expectations, the trough period of bubble disillusionment, the steady climb period, and the stage of substantive application of technology.

Similarly, NFT also applies to this curve, perhaps it is more important than imagined, Shivsak, co-founder of Magik Labs and former Google engineer, therefore conducted a visual exploration of the real use cases of the NFT being built, and explained which fields it will be used in on personal social media. BlockBeats compiled and translated it as follows:

1) Technology trigger stage: Emergence of potentially disruptive technologies;

2) Reaching the peak of expected inflation: early excessive publicity created hype conditions for technologies that have not been validated by the market;

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Correspondingly, in the NFT hype bubble of 2021, Beeple sold his painting "Everydays: The NFT painting of the First 5000 Days. On the other hand, NBATopShot also sold hundreds of millions of dollars in digital video collection moments in the same year, which gradually pushed the speculative hype of NFT to the peak.

3) Trough of Disillusionment: Early projects fail to deliver on their promises and the public starts to lose interest ;

Currently, the transaction value and transaction number of NFT on OpenSea has dropped by 90-95% from the peak %. As such, shivsak believes that cryptocurrencies and NFTs may be near this trough of disillusionment.

4) Technology climbing enlightenment period: the technology is slow Slowly start to show successful cases and get real adoption;

5) Large-scale application stage: wider market application is successful, and the market fit is very clear. Here we will see mainstream adoption and the potential for this technology to become ubiquitous.

The current trough of the bust isn't exactly a bad time to be an investor, though . At this stage, the technology is still early and it's more about finding use cases where it's actually proven successful and making an impact, even on a small scale. So, in addition to the two most important uses in the hype stage, in what areas will NFT be applied?

The hype stage of NFT is mainly manifested in the following two aspects:

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Digital Art

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Some rich people and collectors have bought many JPEGs that are considered "worthless" by ordinary people, and have continuously pushed up the speculative bubble in this field.

< h3>PFP information

Many people use NFT as their personal information on social media such as Twitter picture to distinguish their account from others or fake accounts.

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These are just the beginning, NFT as a way to represent proof of ownership, proving the ownership of digital assets is better than proving physical assets ownership is easier, which is why artwork and PFPs were the first use cases.

However, NFT still has a lot of untapped potential and more uses. Such as the following fields:

Domain Name and Username

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One of the great benefits of NFT domain names is that they can be transferred and traded, while the domain names provided by many Web2 service providers are not easy to transfer or sell.

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Tickets

Such as concert tickets and some Other event passes are well suited for NFT representations, they are limited in number and access to the event requires proof. And NFT can eliminate the problem of counterfeiting, and can easily verify authenticity and ownership.

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In addition, NFT tickets are also very convenient to trade on the secondary market, which brings some other advantages:

< p>- Like a standardized marketplace with buyer-seller protection;

Currently, tickets are traded on inefficient marketplaces like Facebook Craigslist with no guarantees for buyers.

- Free Market Pricing;

- Original Author's Royalty;

- Historical Ownership Data for Tickets;

Means Performer Future passes, discounts, giveaways, etc. can be airdropped to fans.

- Can also be used as a badge to show the user's followers.

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Currently, the online ticketing market is estimated to be over $30 billion and growing rapidly. Among them, a number of NFT-based ticketing projects have emerged, such as: @GetProtocol, @SeatlabNFT, @YellowHeartNFT, @GUTStickets, @WicketEvents and more.

Game Assets

Imagine someone spent 2 years accumulating a handful of rare in-game items. The item obviously has enormous value to gamers, meaning it can be traded or exchanged for other game assets in dollars. And NFT will be able to accelerate this process, and the assets in the future games will also benefit more and more from NFT.

< p>In addition, the game industry is expected to earn $200 billion in revenue this year, a large part of which comes from in-game purchase transactions, and the royalties from the secondary market transactions of these game assets have provided an impetus for game companies to create NFT-based ecology .

Real estate

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However, digital assets currently only capture a fraction of the potential, and real-world assets will be able to capture much of the same value from on-chain NFT representations. Like real estate, it is unique, has an owner, and requires proof of ownership. Therefore, combining real estate with NFT will bring more benefits:

- can be Asset segmentation to increase access and liquidity;

- Can be mortgaged for capital efficiency (e.g. easy access to property-backed loans);

- Global investors can invest in specific Property, neighborhood, town;

- and proof of ownership is also especially important in countries with weak legal systems, etc.

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In addition, the global real estate market is worth hundreds of trillions of dollars, and NFT is one of the most effective ways to prove ownership, resolve disputes, and increase access for investors and homeowners around the world.

But so far we have only discussed the benefits of NFTs for transferable assets . What about non-transferable NFTs?

And this is what people now call soul binding The concept of Token or SBT, Vitalik Buterin also wrote an article about this .

Degree and Certificate

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As I said, NFTs are essentially digital certificates that anyone can verify. This is great for use cases like degrees and diplomas, which you don't want to be tradable. Therefore, they can be represented by a non-transferable NFT (SBT).

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Having a standardized, public proof of diplomas, degrees, skills and achievements on-chain means anyone can verify their legitimacy, as do all other types of credentials.

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In the future, LinkedIn may offer verified checkmarks for users' degrees. At that time, you can get NFT through freelancing to show the proof of work completed, skills used, time spent and examples, and then use it on platforms such as Upwork and Fiverr.

Because NFT is an open source standard, this means that the work done on Upwork gets NFTs can also be displayed on a user's Fiverr profile, and a16z partner @cdixon explains it well about data portability this concept.

Anti-Counterfeiting Protection

Counterfeiting is one of the largest crimes in the world, worth an estimated $2 trillion a year and growing. Therefore, anti-counterfeiting technology has a lot of value, and NFT is working on it.

< p> Speaking of counterfeiting, identity theft is also a huge real problem that can be solved using NFTs. In the United States, more than 15 million citizens face identity theft each year, with losses exceeding $50 billion annually.

And that's no surprise since all American identity theft needs is a 9-digit number, which is often transmitted in emails, documents, phone calls, etc. In this regard, how does Identity NFT solve this problem?

- NFTs are unique and cannot be counterfeited;

- NFTs provide Global standard;

- NFT can be easily verified;

- Non-transferable NFT (SBT) is locked to a specific wallet;

- NFT can be stored in the wallet Canceled in case of loss or theft.

< p>This may also be one of the largest global use cases for NFTs. Because the user's identity often not only has one official ID, but also may include multiple identities, @0xPolygon and @civickey are doing some research on on-chain identity.

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Membership

Digital and physical membership also NFTs can be used to verify access requirements.

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Vote

In addition, NFT identities can also Solve problems such as voting verification. Remember the 2020 U.S. election strife, and there's no need to explain why this is an issue worth addressing. And, the simplicity of online voting can also increase turnout.

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Intellectual Property Protection

NFT can be used to protect Intellectual property, which has two key attributes.

- Verifiability: IP ownership is clearly defined and publicly verifiable;

- Standardization: To allow creators to earn Platforms that collect royalties provide opportunities.

In terms of content, Content submission Users can also submit content such as short videos, comments, and tutorials in exchange for NFT. It’s a marketing flywheel where rights can be programmed into the contract so that using a contributor’s content in advertising can bring them profits.

In addition, @cdixon also said that NFT is completely independent of copyright. A popular one (which he thinks is the best choice) is CC0, which allows creators to remove copyright While profiting, the opposite of imposing scarcity, it increases sharing and abundance.

So music is a pretty obvious use case.

Currently, most artists earn very little from platforms like Spotify and Apple Music.@PastryEth, the average income per creator is approximately:

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- Spotify ($636 per artist)

- YouTube ($405 per channel)

- FB ($0.10 per user)

- NFT ($174,000 per creator)

Crowdfunding

Creators can also use NFT for crowdfunding. For example, investors could obtain NFTs that represent rights to future earnings, which would be especially useful for people in some fields (such as aspiring artists, athletes, actors, etc.).

< p>Similarly, NFT can also be used for crowdfunding projects with great social impact, and NFT will serve as a badge of honor for selfless contributions. This in turn has led to the broader concept of financial NFTs (fNFTs), resulting in a number of unique financial contracts:

- Individual baskets of assets (unique portfolios );

- debt agreements with partially repaid lenders;

- time-locked tokens (eg: veCRV)

Law Contracts 

In general, any legal contract or document can benefit from NFT, existing A paper/PDF certification system for , presents a Photoshop risk.

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Additionally, the benefits of block security and its ability to trigger transactions via oracles will accelerate the adoption of Web3 legal services + contract development. And some DocuSign killer projects will be built in 2022 and deliver NFTs to contract executors.

Email and Messages

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Verbal agreements via email and messages.

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Medical Records

- proof of vaccinations;

- Covid test results;

- prescriptions, etc.

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Through the above sections, I tried to cover most of the use cases I could think of, but probably just scratched the surface. And people are constantly looking for other creative use cases of NFT. In the future, NFT will lead to large-scale tokenization of off-chain value, which will affect the entire cryptocurrency market.

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