Are they though?

(Spoiler: I don’t think so)

Today, I invite you to start a discussion around NFTs - but not (only) those infamous PFP projects that flooded the news a few years ago.

Instead, let’s try and understand what else they can bring to the Web3 table - including how different industries can leverage them to enhance their results.

LFG!

First things first:
What are NFTs?

In an edition I published around 6 months ago, one of the segments was dedicated to explaining what an NFT is.

In said segment, I added a definition by Forbes:

In other words, NFTs (Non-Fungible Tokens) are unique digital assets verified using blockchain technology.

Unlike cryptocurrencies such as Bitcoin or Ethereum, which are identical and interchangeable, each NFT has distinct information making it one-of-a-kind. This uniqueness allows NFTs to represent ownership of digital items like game assets, tickets, art, music, and even real estate.

Essentially, NFTs bring a new perspective on how we view ownership and authenticity. They provide verifiable proof of ownership and provenance, ensuring that digital assets can be bought, sold, and traded securely.

Ok, but are they done yet?
Current sentiment around NFTs

Generally speaking, when people hear "NFTs" reactions can be quite polarized. Many associate NFTs (only) with the 2020-2021 boom when digital artworks and PFP (Picture-for-Profile) projects like CryptoPunks and Bored Ape Yacht Club sold for eye-popping sums.

That period was marked by rampant speculation, where NFTs were primarily seen as speculative investments rather than innovative technology. And to be fair, most projects didn’t care about any innovation - they just tried to make as much money as possible during that cycle (and I’m not even talking about some “projects” that were complete scams).

The mainstream media often focuses on the volatility and speculative nature of NFTs. Headlines such as "Are NFTs Dead?" dominate, reinforcing the perception that NFTs are merely a passing trend. This skepticism is fueled by the market downturns and stories of overpriced digital art crashing in value, which overshadow the technology’s broader potential.

However, this sentiment often fails to capture the evolving context of NFTs. While the initial “craze” highlighted speculative investments, the technology behind NFTs offers MUCH more.

NFTs can be used for many different purposes - which will be explored later today. Nonetheless, the negative buzz often misses these innovative uses, leading to a narrow and often misinformed view of NFTs.

Despite the criticism, NFTs continue to evolve and find new applications. The shift from speculative assets to functional tools is happening gradually, with various industries exploring how NFTs can add value.
This process suggests that while the hype may have died down, the foundational technology of NFTs remains robust and full of potential.

Focus on what really matters:
NFTs for Brands and Businesses

Speaking of potential, for brands and businesses NFTs offer a unique way to engage with audiences.

They can create verifiable and exclusive experiences, fostering deeper connections with consumers. For example, NFTs can serve as digital memberships, providing holders with access to exclusive content, events, or products, thereby building brand loyalty and offering new revenue streams.

Projects and initiatives can also leverage NFTs for innovative fundraising and community engagement. By issuing NFTs, they can raise capital while offering supporters tangible digital assets that may rise in value over time.
This model has been successfully employed by startups and charitable organizations alike, demonstrating the versatility of NFTs across different sectors.

NFTs also revolutionize intellectual property and royalties. Creators can embed smart contracts within NFTs to ensure they receive royalties whenever their work is resold.
This capability is transformative for industries like music and publishing, where creators have traditionally struggled to capture the full value of their work. Brands are increasingly recognizing these benefits and integrating NFTs into their strategies to enhance engagement and monetization.

The strategic use of NFTs by brands is expanding rapidly. Beyond digital art, NFTs are being used for everything from authenticating luxury goods to creating virtual experiences in the metaverse. This wide range of applications highlights the growing importance of NFTs in the digital economy.

NFTs for everybody

In past editions, we covered several uses for NFTs, so I invite you to check them - it can help you expand your understanding of the different applications for this amazing technology:

• NFTs as collateral of Real-World Assets: We explored how a non-fungible token - a piece of art, a pfp, or even a virtual estate in the Metaverse - can be used to secure a loan.

• Gaming: Web3 gaming introduces NFTs as in-game assets, allowing players to truly own, trade, and monetize items, thus enhancing the gaming experience and creating new economic opportunities within virtual worlds.

• Open Loyalty: Brands are using NFTs to create interoperable loyalty programs where rewards are tokenized, enabling customers to trade or redeem them across different platforms, enhancing engagement and retention.

• Quests-based journeys (or simply educating your audience about NFTs): Interactive learning experiences are being gamified using different ways, including NFTs, where participants can earn tokens as rewards for completing educational quests, making learning engaging and rewarding.

• NFTs in retail: Retailers, from small businesses to global brands, leverage NFTs for authenticating products, offering digital twins of physical items, and creating exclusive shopping experiences.

• Luxury market: The luxury sector uses NFTs to verify the authenticity of high-end goods, provide digital certificates of ownership, and offer exclusive digital experiences, thus ensuring trust and enhancing brand value.

• Creator Economy: NFTs empower creators by allowing them to monetize their work directly with their audience, ensuring fair compensation through smart contracts and creating a new model for the gig economy.

• Travel & Hospitality: The travel industry can use NFTs for booking accommodations, offering exclusive travel experiences, and creating loyalty programs that provide travelers with unique, verifiable digital assets.

• Art industry: NFTs have revolutionized the art world by providing artists with a new medium to sell their work, ensuring provenance and authenticity, and enabling artists to receive royalties from secondary sales.

There are many more ways to use NFTs but, it’s important to underline that it goes WAY beyond a cool profile picture.

What's Next for NFTs?
Is a “rebrand” necessary?

Looking ahead, the potential applications for NFTs are vast and varied, I mean, we’ve just listed a bunch of possibilities, right?

One promising area is digital identity and credentials. NFTs can provide verifiable digital identities that ensure privacy and security, applicable in education, professional certifications, and social media.
This shift towards using NFTs for identity management could revolutionize online interactions, offering more secure and user-controlled experiences.

Another exciting development is the use of NFTs in ticketing and access control. By tokenizing event tickets, organizers can combat fraud and scalping while offering enhanced experiences to attendees.
Ticket NFTs can include perks like exclusive content or future event discounts, adding value beyond mere entry passes.

Fractional ownership is also gaining traction. NFTs can represent shares in physical or digital assets, allowing multiple people to own a piece of high-value items like real estate or art.
This democratizes investment opportunities, making them accessible to a broader audience. These emerging uses indicate that the NFT space is far from static, with continuous innovation driving new possibilities and applications.

But besides all uses and possibilities, an option that may help an NFT-based project or program avoid this “negative sentiment” is not calling them NFTs.

Sometimes, it’s just about how we name things, right? Digital collectibles, collectible tokens, digital assets, etc.
Or, in fact, instead of worrying about how to name them, a project can be successful not focusing on the jargon, but instead on the benefits.

At the end of the day, most users don’t really care what’s the “correct” name of that thing, as long as it works as intended and brings them some sort of benefit.

But that was my take. What do YOU think about this “post-pfp” era for NFTs?

See you soon.

#LFGrow
Diego Borgo