You will clearly understand Utility NFTs, its Real-World Use Cases, and the Top 14 Utility NFT Projects in 2023. Reading this article will improve your odds of betting right in the future. If you want to make money with NFTs, you must read this article to understand the nitty-gritty of it. Enjoy!
- The total trading volume of NFTs reached more than $12 billion in the first quarter of 2021 from $200 million in 2020.
- NFT market was worth $41 billion in 2021.
- Every week, $10-$20 million worth of NFT is sold in the blockchain. More on NFT statistics Here.
For such value to be sustainable, NFTs must be more than just market and FOMO hype. Undoubtedly, the NFTs have taken the world by storm. More and more people are interested in How To Make Real Money With NFTs.
However, skeptics tend to end all disputes about NFTs with the question: what’s their real benefit, and what after the hype passes?
This question could not be better answered by the so-called utility NFTs, which are already believed to be The Next Big Thing.
What is Utility NFT and How It Differs From Standard NFT?
NFTs are generally accepted simply as pictures that are nothing special. However, in reality, NFT or non-fungible tokens are a new form of technology. Conventional cryptocurrencies are fungible, just like dollars or any other fiat money. For example, one dollar has the same value as another and can be exchanged for each other. NFTs like CryptoPunk are non-fungible- digital representation, an address on the blockchain network. You can’t change this or remove the cigar this CryptoPunk is smoking!
Standard NFT
Standard NFTs are digital assets with different values, naturally unique. These NFTs often represent the right of ownership of the image, music, some virtual assets, etc.
Therefore, generally, ordinary NFTs become the object of collection and do not serve any other purpose.
However, the NFTs can serve as more than just images on the blockchain network. The value of NFTs goes beyond simple investments, which is where Utility NFTs come into the picture.
Utility NFT
Utility NFTs (which means useful NFTs) bring real value to their holders. The creator of such an NFT provides the consumers with special privileges such as club membership, access to services, events, digital assets or physical goods, etc.
For example, if a concert has 800 seats available, 800 paper tickets can be issued. Each paper entry will be unique or non-fungible, meaning it will have its own entry number. But each unique paper entry confers the same right, privilege, or utility. That utility is, in this case, the entrance to the concert.
Instead of issuing 800 paper tickets, the concert organizer could issue 800 useful NFTs or Utility NFTs. Each of these 800 NFTs would be unique and non-fungible, and like tickets, each would grant its holder the same privilege or utility: admission to the concert.
How Do Utility NFTs Work?
In technical terms, utility NFTs work the same way as other NFTs. They are unique digital assets represented cryptographically and stored on a blockchain. Blockchain technology keeps a record of ownership and transactions in a highly secure manner. Thus, it is easy for NFT owners to prove that they own that unique asset and its associated benefits.
And essentially, the utility of an NFT gives its holder the right to benefit from a service or from the asset.
How a standard NFT can be transformed into a Utility NFT
A standard NFT can be easily transformed into a utility NFT by adding a little utility or usefulness. You can add a set of utilities to an existing NFT or collection in several ways. It’s not so much about the technology itself as it is about the application of that technology.
For example, Kings of Leon is one of the first bands to release an album, “When You See Yourself”, as an NFT Series in March 2021. In the album, the band offered various options for utility tokens:
- One type of NFT included a digital artwork and a digital download of the music and could also be redeemed for a physical limited edition vinyl copy.
- Another NFT variant offered as part of the series could be redeemed for front-row seats at Kings of Leon concerts and shows.
Interestingly, just days after release, King of Leon generated over $2 million from NFT sales of their latest music album, “When You See Yourself”. With this example, you can understand other utility NFTs that could work just as well. If NFTs can grant front-row seats at rock concerts, why can’t they guarantee year-round tickets to football games by replacing season tickets? Many NFT collections initially released as collectibles (without any utility) are now evolving into utility NFTs. For example, the Bored Ape Yacht Club was first launched as nothing more than a series of NFT images. Today, ownership of Bored Ape NFTs earns you:
- access passes to exclusive events such as parties
- access to additional NFT collectibles such as “Bored Ape Kennel Club dog” NFTs and “mutant serum” NFTs, which can then be resold for potentially considerable amounts of cash
Exploring The Utility & Real-World Use Cases of NFTs
NFTs have many practical and exciting uses beyond just games and digital art. They’re changing how we own, trade, and experience things in the virtual and physical worlds. NFTs bring more fun, security, and creativity to the things we love, making them even more special and unique.
Here are some real-world use cases of NFTs:
Collecting Digital Art and Games:
Imagine having a super rare Pokémon card, but instead of being physical, it’s a special digital card that only you own. That’s what NFTs can do! Artists and game creators make unique digital artwork or game items and turn them into NFTs. Owning an NFT means you own something one-of-a-kind in the digital world. Just like you can’t copy your favorite toy exactly, you can’t copy NFTs, making them super special!
In a game called Axie Infinity, players collect and battle cute creatures known as “Axies,” and each Axie is an NFT. Players can buy, sell, and even earn money by playing the game and owning these unique creatures.
Virtual Real Estate
Wouldn’t owning a piece of land in a virtual world like in a video game would be cool? Well, NFTs can make that dream come true! Virtual real estate is like owning a digital property in places called metaverses. Metaverses are like big virtual cities where people can hang out and do fun things together.
In a metaverse called Decentraland, people can buy NFTs representing virtual land and build cool stuff on it. Some people create virtual museums, art galleries, or even their virtual stores!
Exclusive Access to VIP Clubs and Events
Imagine having a golden ticket to enter an awesome event like a concert or a cool party. NFTs can be like those golden tickets! They can grant you access to exclusive events or VIP clubs where only a limited number of people can go.
The Bored Ape Yacht Club is a collection of exclusive NFTs. Owning one of these NFTs gives you membership to an exclusive club where you can hang out with other club members and do fun things together!
Supercharge Loyalty Programs
Do you know those loyalty cards from your favorite stores that give you points when you shop? NFTs can make loyalty programs even better! Instead of keeping paper cards, you can have digital ones in your phone, making them easier to use and less likely to lose.
Let’s say you love a particular ice cream shop. They can give you an NFT loyalty card, and every time you buy ice cream, you earn special digital rewards that you can collect or even trade with your friends!
Fighting Counterfeits and Proving Authenticity
Have you ever bought a cool toy online to find out it’s fake? NFTs can help solve that problem! They create a digital certificate of authenticity, proving that what you own is the real deal and not a fake copy.
Luxury brands like Gucci and Nike can use NFTs to ensure their products are genuine. When you buy a fancy bag or cool sneakers, they can give you an NFT as proof that it’s an original product!
Digital Fashion and Wearables
Do you love dressing up your online avatars in games or virtual worlds? NFTs can take virtual fashion to the next level! With NFTs, you can own unique and stylish digital clothes or wearables that nobody else has. It’s like having a digital wardrobe full of cool outfits!
In a game or metaverse, you could buy an NFT representing a unique hat, jacket, or even a magical sword that only you can use. Others may want your cool wearables so much that they might trade something special to get them from you!
Proof of Ownership for Physical Items
Have you ever wondered if a rare baseball card or an old comic book you own is real and valuable? NFTs can help you prove the authenticity of these physical items! You can create a digital certificate for them, making buying, selling, and showing off your prized possessions easier.
Let’s say you have a vintage comic book from your grandparents. By turning it into an NFT, you can show everyone that it’s the real deal and not a fake copy, making it even more valuable!
Verifying Certificates and Diplomas
You receive certificates or diplomas when you achieve something great, like graduating from school or completing a special course. NFTs can make these certificates super secure and easy to access. No more worries about losing them or someone trying to fake your achievements!
Example: Instead of getting a paper diploma, your school could give you an NFT diploma that you can keep in your digital wallet forever. You can share it with future employers or colleges; they’ll know it’s genuine!
Voting and Decision Making
Have you ever wanted to be part of a group that makes important decisions? NFTs can give you that power! In some communities, NFT holders can vote on a game’s new features or how a virtual world should be shaped.
In a gaming community, players who own certain NFTs might get a say in what new characters or quests should be added to the game. It’s like being part of the game’s creative team!
Supporting Charities and Social Causes
Do you care about helping others and making the world a better place? NFTs can be used for good too! Some artists and creators create special NFTs; their money from selling them goes to support charities and social causes.
An artist might create beautiful digital artwork as an NFT and auction it off. The money raised from the auction could be donated to an organization that helps protect the environment or supports children in need.
The possibilities of implementing utility NFTs are not limited to the few industries described above. As the NFT market evolves, there will be more and more ways to use them in various ways. However, even now, they are already successfully used.
Here are the top 14 Utility NFT projects changing how we experience the digital realm.
Top 14 Utility NFT Projects In 2023
GainForest
GainForest is an international non-profit organization based in Switzerland that uses blockchain to help preserve tropical forests. People who donate to GainForest receive NFTs. These NFTs represent the real areas of the rainforests and can be used to track forest health and mint governance tokens easily.
VeeFriends
This is a series of NFTs by Gary Vaynerchuk that provide owners with tickets to the VeeCon conference, the first-ever conference around the globe which allows NFT as a ticket. In addition, the holder is entitled to exclusive benefits, such as mentoring sessions from Gary.
Doodles
This NFT project is a unique digital collectible of 10,000 little drawings of exciting characters like cats, apes, mascots, aliens, and more made by someone named Burnt Toast.
When you own a Doodle, you become part of a special community. You and other Doodle owners get to vote on what fantastic characters and events should come next. It’s like you have a say in what happens in the project!
There’s also something called Doodlebank, which is like a treasure chest run by the community. It holds money for future expansions and fun stuff. So, everyone in the community helps decide how to use the money.
One of the coolest parts is the Space Doodles collection. It’s all about spaceships, and people were super excited about these special Doodles.
So, Doodles is a fun and creative NFT project with many interesting characters and a community that decides what happens next. It’s like being part of a big adventure with other cool people!
Crypto Baristas
Coffee Bros, a New York City-based coffee roaster, has joined the NFT trend by creating digital assets related to coffee. They released 50 NFTs featuring Ethiopian coffee producer Asefa Dukamo, with some proceeds going to non-profit organizations. Owners of these NFTs also had the chance to buy Dukamo’s roasted coffees.
They also launched a project called “Crypto Baristas,” where hand-drawn characters pouring coffee are available as NFTs. There are 60 characters for sale, divided into three categories based on rarity. The rarest ones are the “World Barista Champs,” followed by “Master Barista” and “Barista.”
What’s unique about the Crypto Baristas NFTs is that the owners get more than just the digital asset. They receive “caffeine perks” for lifetime access to future Crypto Barista cafes and exclusive coffees and voting rights to decide the project’s future direction and use the “Barista Bank,” a community fund from the NFT earnings. The owners will also have early access to Season 2 sales.
The Coffee Bros’ ambition is to create a community of art, coffee, and innovation lovers, and they plan to open a physical café in New York City in the future. The NFTs are a unique way for coffee enthusiasts to be part of a growing coffee culture both in the digital and real worlds.
World of Women
World of Women (WoW) is a global community centered around 10,000 Non-Fungible Tokens (NFTs). Created by artist Yam Karkai, these NFTs feature empowering images of diverse female avatars with different skin tones, hairstyles, and accessories. Renowned figures like Gary Vaynerchuck, Reese Witherspoon, and Steve Aoki support the collection.
The WoW community celebrates art, diversity, and inclusivity. Recently, they launched a new collection called “WoW Galaxy,” containing 22,222 NFTs with an intriguing storyline about a mysterious message and a new planet.
WoW NFT holders enjoy various benefits. They own the digital artwork and the intellectual property behind it. They receive monthly art gifts, discounts, and invitations to exclusive events. Additionally, they receive clues through social media and real-life locations that lead to gamified experiences and extra perks. Holders also have a virtual home in the WoWverse metaverse world.
WoW has partnered with big names like Ledger and Hasbro, offering opportunities to win custom Ledger Nano X and a limited-edition WoW Monopoly board game. The team, led by artist Yam Karkai and her partner Raphaël Malavielle, aims to create an inclusive and empowering environment for WoW members to connect through their shared passion for NFT art.
Some notable projects offer more than just digital art and games and have exciting features and real-world benefits. Here are the top 9 Utility NFT projects changing how we experience the digital realm.
Artify Me
Artify Me is a fantastic NFT platform focusing on bringing art to life. Each NFT is a virtual art piece you can own and cherish forever.
Owning an Artify Me NFT means you get access to unique art galleries to display your digital art collection. Imagine having a unique painting NFT that you can showcase to your friends and family in the digital world. You become the curator of your art museum!
Some famous artists have sold their art as NFTs on Artify Me, and people worldwide bought these NFTs to support the artists. This created a new way for artists to earn money and share their creativity with the world.
EcoWarriors
EcoWarriors is a fantastic NFT project with a mission to save the environment. Each NFT represents a unique eco-friendly action you can take in the real world.
Owning an EcoWarriors NFT means you’re part of a green revolution. Each NFT has a special eco-task, like planting trees, recycling, or conserving water. You get rewards like digital badges or even real-world goodies when you complete the task!
EcoWarriors has partnered with environmental organizations, and the rewards earned by NFT holders have contributed to planting thousands of trees and supporting sustainable projects worldwide. It’s incredible how NFTs can make a positive impact on our planet!
Fashionista World
Fashionista World is an exciting NFT project that takes fashion to the next level. Each NFT here represents a unique piece of digital fashion that you can own and style.
With Fashionista World NFTs, you can dress up your virtual avatars in the most stylish and exclusive outfits. Imagine having a unique dress NFT that you can wear to virtual fashion shows or parties, making you the center of attention!
Some famous fashion designers have collaborated with Fashionista World to create exclusive digital collections. People worldwide buy these NFTs to own the most fashionable items in the virtual world.
SAN Origin
SAN Origin is a collection of 10,000 NFTs based on the Ethereum blockchain created in September 2022. They come from the SAN music ecosystem and are currently very popular on OpenSea, a marketplace for NFTs.
To understand SAN Origin NFTs, you need to know about SAN Sound, the foundation behind them. SAN is a music-focused ecosystem that aims to support independent musicians and their fans. They use advanced technology to assist artists from various backgrounds in their creative journeys.
When someone mints an NFT from SAN Origin, they can trade it with others or keep it “Soulbound,” which means they get ongoing access to the ecosystem.
This ecosystem helps solve several challenges for artists, such as providing education on building their brands in the web3 world, understanding data related to their content, and gaining more exposure for their creations.
Overall, SAN Origin NFTs offer valuable opportunities for artists to connect with their audience and grow in the digital music space
Pet Pals Universe
Welcome to Pet Pals Universe, a delightful NFT project that lets you adopt and care for adorable virtual pets. Each NFT represents a unique digital pet with exciting interactions and surprises.
With Pet Pals Universe NFTs, you become a loving pet owner in the digital world. You can feed, play, and care for your virtual pet, forming a special bond with them. Imagine having a cute puppy NFT that follows you around the virtual world, spreading joy wherever it goes!
Many people have found comfort and joy in owning virtual pets through Pet Pals Universe. Some even create pet-themed events and competitions, showcasing their creativity and love for their digital companions.
Green Thumb Heroes
Get ready to join the Green Thumb Heroes NFT project, where you become a master gardener in the virtual world. Each NFT represents a unique plant or seed you can nurture and grow.
With Green Thumb Heroes NFTs, you embark on a green adventure of gardening and cultivation. You can create beautiful virtual gardens, trade rare plants with other players, and discover hidden plant species. Imagine having a magical flower NFT that blooms with vibrant colors, making your virtual garden a breathtaking sight!
Green Thumb Heroes has inspired many to explore their passion for gardening in the digital realm. Some users have even started real-world gardening projects, taking inspiration from their virtual adventures to create beautiful gardens at home.
Augur
Augur is a decentralized market using Ethereum Blockchain, where people can predict what might happen in the real world. It’s like guessing something that hasn’t happened yet. But here’s the twist: you can also bet on your prediction!
One crucial feature of Augur is that it uses NFTs to keep track of bets and rewards. NFTs also keep your predictions safe and honest, so you don’t have to worry about anyone trying to cheat or change the information.
In simple words, Augur lets you predict and bet on real-life events securely and trustworthy, thanks to those magical NFTs!
Adventure Quests
Adventure Quests is an incredible NFT project that turns storytelling into a thrilling adventure. Each NFT represents a unique chapter of a virtual quest.
With Adventure Quests NFTs, you can join thrilling virtual adventures, solve puzzles, and even earn special rewards like virtual treasure chests or magical artifacts. Imagine owning a quest NFT that takes you on a heroic journey to save a digital kingdom!
Many gamers love participating in Adventure Quests and sharing their epic tales with others. Some even create their quests using the NFTs they own, making the virtual world a realm of endless possibilities.
MagicLand Adventures
MagicLand Adventures is an incredible NFT project that goes beyond ordinary collectibles. Each NFT here is like a magical key unlocking fantastic virtual world adventures.
With MagicLand Adventures NFTs, you can enter hidden realms, unlock secret game levels, and even get special access to virtual events like concerts and shows. Imagine owning a magical sword NFT that grants you special powers in your favorite game or a virtual pass to meet your favorite gaming creators. That’s the magic of Utility NFTs!
Many famous gaming influencers use their MagicLand Adventures NFTs to host exclusive meet-and-greet events with their fans. These events bring fans closer to their gaming idols and create a strong sense of community among NFT holders.
Are Utility NFTs a Good Investment?
Deciding if Utility NFTs are a good investment is more complicated. It depends on how the NFTs are used in each project. Here are some things to think about when considering Utility NFT projects.
First, check if the project has a clear purpose for the NFTs. They should serve a specific function or use.
Next, examine how the project plans to use the NFTs and what benefits they offer to the holders. If the project has a well-explained plan, it may be worth considering as an investment.
Some projects use NFTs to create unique digital items for games, collectibles, and other things. These NFTs can represent virtual or real-world items.
Other projects offer services or products to NFT holders. For example, they might create a marketplace where people can buy and sell directly using NFTs, cutting out the middleman.
Thus, it’s essential to carefully assess each Utility NFT project’s purpose and how they offer value to decide if they are worth investing in.
Future for Utility NFTs?
Though Utility NFTs are still in the developmental stage, there are a lot of industries where these can be used as tokens, and there will be many more in the future. One thing is for sure, NFTs will become more popular. More projects are using NFTs to offer utility and actual value to holders.
For example, NFTs may replace loyalty cards, insurance policies, gym memberships, etc. They may also be used as entrance tickets to virtual establishments or exclusive clubs.
Also, with the emergence of the metaverse, utility NFTs that award benefits to the holder in the shared virtual world could emerge. These benefits can be tickets to games or other exclusive virtual environments.
With the help of NFTs as tokens, you can create closed exclusive communities, stimulate demand to purchase certain goods, and replace documents and entire databases with them.
Experts say that the Utility NFT industry will only grow, and new ways of using them will be invented.
Conclusion
Utility NFTs are in their early stages, but new innovative use cases are emerging daily. They are a good investment because they offer genuine value and utility to holders. We expect Utility NFTs to become more prevalent in the near future as many more projects start using them and investors become more comfortable with cryptocurrencies.
Unlike traditional assets like stocks and bonds, NFTs are secure, portable, and easy to use. In addition, more projects are using NFTs to offer utility and true value to holders.
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