NFT: Digital Ownership or Just a Passing Trend?
In our last piece, we talked about what Web3 is. Now let's dive into what's happening inside this Web3 world.
In our last piece, we talked about what Web3 is. Now let’s dive into what’s happening inside this Web3 world.
In this newsletter, we’ll explore a variety of topics like blockchain/Web3 business models, tokenization, DAOs, RWAs, and more. But I wanted to start with something that even those not deeply involved in the Web3 world have probably heard of: NFTs.
These days, when people think of NFTs, they usually picture those collectible items sold for astronomical sums or just speculation. But NFTs are far more than just art or investment tools, and we really need to broaden our perspective beyond the “digital collectibles” everyone has heard about.
💡 What is an NFT?
An NFT (Non-Fungible Token) is a unique, immutable digital asset recorded on a blockchain.
Unlike tokens traded on cryptocurrency exchanges, NFTs can’t be swapped for one another. Each one is unique. Because NFTs represent digital ownership and can be transparently positioned on a blockchain, this technology opens up many possibilities beyond art and collectibles, like digital identity, memberships, ticketing, and more.
📌 In the traditional digital world, the content we create, photos, in-game items, memberships, has always been under the control of centralized platforms. NFTs offer a way for these assets to genuinely belong to the user.
🎟 NFTs and Loyalty Programs
Most of us are members of loyalty programs from brands we use, banks, airlines, coffee chains. Today, nearly all these loyalty programs are centralized.
For example, when you join an airline’s miles program, you accumulate points. But the company can reset these points, limit their use, or cancel them at will. NFT-based loyalty programs ensure that the rewards you earn truly belong to you.
💡 Lufthansa Uptrip
A great example is Lufthansa’s NFT-based loyalty program.
Passengers earn NFT collections based on their flights. Through NFTs, they can gain benefits like extra miles or lounge access.
The biggest difference from centralized loyalty systems is that these rewards are entirely owned by the user and can be bought or sold.
🎮 NFTs and the Gaming World
Many games today include digital assets, costumes, weapons, character upgrades. But none of these belong to the player. When a game shuts down or an account is closed, those assets disappear.
NFTs change this by ensuring that in-game assets truly belong to the player.
💡 Ubisoft Quartz, In-Game NFTs
Ubisoft has developed a system that integrates NFTs into their games, allowing players to keep and sell in-game assets on the blockchain.
In the game Ghost Recon Breakpoint, players can acquire and sell limited-edition NFT-based items. Because these assets are verifiable on the blockchain, the risk of fraud is eliminated.
NFTs create economic value for players outside the game ecosystem.
Ubisoft has announced that this system will be integrated into more games in the future.
🎟 NFTs and Ticketing
Fraud, loss, and scalping are major issues with event tickets. NFT tickets aim to eliminate these problems by being verifiable on the blockchain.
💡 Coachella NFT Tickets
Coachella sold NFT tickets that offer lifetime VIP access.
Unlike traditional tickets, NFT tickets can be stored in personal wallets.
This prevents fraud and gives organizers the opportunity to foster long-term loyalty.
🚀 Will NFTs Become a Part of Our Lives in the Future?
NFTs are still an emerging technology. Today, they might seem like just a speculative investment tool to many, but their real-world applications in gaming, loyalty programs, and ticketing continue to grow.
We’ll take a closer look at the use cases of NFTs in the RWA (Real World Asset) space in another article.
If you didn’t find all these examples convincing, or if you’re curious to learn more, I have some good news for you.
I want to mention another newsletter that inspired me when starting this one. “Tokenize World,” by Bertuğ Oymak, founder and CEO of Utilify and Agentipy, offers many examples of real-world NFT applications and presents them in a very engaging and fun way.
👉 Do you think NFTs will become a part of our daily lives in the future?
👉 If you know of any real-world examples of NFT use, let me know!