The year 2021 was a ground-breaking year for NFTs, with digital art and other unique assets selling for millions of dollars. Remember when Jack Dorsey, the co-founder and CEO of Twitter, sold his first tweet as an NFT for a jaw-dropping $2.9 million? Yeah, we were blown away too.
But as we moved into 2022, the NFT market began to experience a slowdown – and we entered a bear market - causing some to question the viability of this new form of digital asset ownership. And, Jack’s NFT tweet plummeted in value too. Sad times, Jack - we’re sure you’re OK though.
However, fast forward to 2023, and the future of NFTs is looking brighter than ever. As more people discover the unique benefits of non-fungible tokens, the market is seeing a resurgence of interest and investment. And the latest buzzword driving this revival is none other than "utilities".
Exploring the power of utilities in NFTs
In case you haven't heard, utilities are the latest development in the world of NFTs, and they're setting the world alight. Utilities are the key to unlocking immersive and interactive experiences that merge the digital and physical worlds in ways never before possible. From digital meetup experiences to IRL events, utilities are transforming the way we engage with digital assets and creating new possibilities for creators and collectors alike.
But hang on, we’re getting ahead of ourselves. Let’s take a step back and we'll explore the top eight benefits of NFTs in 2023, and why we believe that NFTs are here to stay.
Strap in – it’s gonna be good.
NFT benefit #1: Ownership
Digital ownership, the basics of NFT benefits
First up - the basics. NFTs offer a new way to prove ownership and authenticity of digital assets. This makes it easier to sell and transfer unique items, while preventing fraudulent activity. You knew it, we knew it, but it bears repeating.
For example, a digital artwork that has been converted into an NFT can be traced back to its original creator, providing a clear record of ownership. This can help prevent unauthorized copying or distribution of the artwork, and make it easier for buyers and sellers to conduct transactions with confidence.
Ownership can have a huge value
Gimme an example you say? Sure – we got you. How about Beeple, aka Mike Winkelmann, who sold his work Everydays – The First 5000 Days in March 2021. It went an impressive $69.3million, which is the highest price paid for an NFT so far. The piece is a true labor of love – a collage Winklelmann created by collating one artwork a day for 5,000 days, since 2007. Amazing, right?
NFT benefit #2: NFTs allow new revenue streams
NFT empowers Digital creators and owners
Creators and owners of digital content can use NFTs to generate new revenue streams by monetizing their digital assets through sales, licensing, and royalties. By converting their digital content into an NFT, creators can sell their work as a unique, one-of-a-kind asset, rather than a copy that can be easily replicated.
NFT benefits for artists
For example, a musician could release an album as an NFT, allowing fans to purchase
a digital copy of the album that’s verified as both legit and unique. The artist can also earn royalties every time the NFT is resold, creating a new revenue stream for the artist.
Exclusive content thanks yo NFTs
A great example of this working well is the release of The Amazons Digital Box Set NFT by CIRKAY and Virgin Records in April last year. The release marked the first time that an OCC UK chart certified compliant album included an NFT. The Digital Box Set NFT provided access to exclusive content from The Amazons, including animated pics, demo clips of upcoming singles, and an exclusive track-by-track analysis from the band, all accessible by simply clicking media channels that are embedded within the NFT
NFT benefit #3: NFTs allow to show authenticity
NFTs verify unique and rare items
So we know that NFTs allow digital assets to be verified as authentic, which can be particularly
useful for unique or rare items. By using blockchain technology to verify ownership and authenticity, NFTs can provide a clear record of the item's history and provenance.
Example? Sure. A digital trading card that has been converted into an NFT can be traced back to its original release and verified as a unique asset. This can make it easier for collectors to determine the value of the card and prove its authenticity. No fakes on our watch.
Authenticity can be crucial when purchasing NFT
A great example of NFTs flexing their authenticity muscle is the sale of rare CryptoPunks for insane amounts of cash. CryptoPunks are a collection of 10,000 unique 8-bit characters, and some are more rare and valuable than others. But by using blockchain technology to verify ownership and authenticity, NFTs can provide a clear record of a Punk's history and provenance, which can make it easier for collectors to determine its value and prove its authenticity.
In March 2021, one rare CryptoPunk NFT sold for a mind-blowing $69 million on the digital marketplace, Christie's. That's right, $69 million! And the use of blockchain technology to verify the ownership and authenticity of the NFT was crucial in determining its authenticity - and letting everyone know it was worth top dollar. Nice.
NFT benefit #4: NFTs as keys to communities
If you’ve read any of our previous blogs at all, you’ll know that we believe NFTs are all about community, and facilitatingcollaborative projects within communities.
Some NFT projects are already rewarding their communities for creating utilities on their behalf. And ofc, it’s here where Tropee comes into its own too. Yep, the beauty of Tropee is that you can build utilities for any community - regardless if you’re a member of it or not. It means that the market is going to become so much more collaborative, and that communities will feel more empowered than ever.
NFTs are literally designed to be easily transferable, making it easy for buyers and sellers to exchange tokens on blockchain-based marketplaces without the need for intermediaries. This can make it easier for collectors to buy and sell digital assets, and create a more efficient marketplace for creators to monetize their work.
Want more? We got a great guide to the wallets you need to buy, store and sell your tokens. Check it out here.
NFT benefit #6: NFTs are an investment
Another obvious one maybe, but a goodie. NFTs can offer new investment opportunities for collectors, as digital assets can increase in value based on their popularity and rarity. By investing in NFTs, collectors can profit from the appreciation of the asset over time.
For example, a collector who purchases an NFT of a popular digital artwork can potentially sell the NFT for a higher price in the future, if the artwork becomes more valuable over time. This can create new investment opportunities for collectors who are interested in digital assets.
We wrote a whole blog on the collections making waves on the secondary market. You’re gonna want to take a look here.
NFT benefit #7: NFTs for transparency
We all know that NFTs use blockchain technology, which provides a transparent and secure ledger of all transactions. This can give users greater confidence in the authenticity and provenance of digital assets, and prevent fraud or unauthorized copying. Yep, we’re back to that again - let me hear you say: ‘NO FAKES HERE’.
For example, a collector who purchases an NFT can easily verify the authenticity of an asset by checking the blockchain record of transactions. They know it’s legit, they can keep it and enjoy it, and ultimately sell it if they wanna - all with peace of mind that they’ve bought the real deal.
NFT benefit #8: Access to immersive experiences
Link digital assets to real-world events
NFTs can enable immersive and interactive experiences by linking digital assets with real-world events. UTILITIES anyone? For example, a concert ticket NFT could provide access to a live stream of the concert, as well as special behind-the-scenes content and other interactive experiences. This can provide a new level of engagement for fans and create new revenue streams for artists and event organizers.
Redefining the value of NFTs with Veefriends
You know we’re gonna mention Gary Vee at least once in this blog, right? Well here it is- our obligatory Vee Friends mention.
But you knowwww we’re right - VeeFriends is a perfect example of trying to give physical utility to an NFT, and provide experiences to holders.
The NFTs all give holders three years of access to VeeCon Gary’s event on business, marketing ideas, creative thinking as well as entrepreneurship, innovation, and having fun. It’s essentially a huge networking opportunity, and so affordable too, as the cost of the floor for the cheapest NFT begins at just under 9 ETH.
The future of NFT benefits
So, we’re done. And we reckon we’ve proved by now that NFTs are here to stay. From preventing fraud and proving authenticity to creating new revenue streams and facilitating collaborative projects, the potential applications of NFTs are nearly limitless. As the technology continues to evolve, we can expect to see even more exciting use cases and revenue streams emerge in the future.
The possibilities are endless, and the future is bright for NFTs. And best of all, we can help you make the most of your own collection and community. Hop on Tropee to find out more - the home of NFT utilities.