Utility NFTs are a class of non-fungible tokens designed not just for collecting but also for utility.
The core of utility NFTs is a unique token for real use
A large category of non-fungible tokens (NFTs) are utility NFTs.
The purpose of constructing utility NFTs is to allow token holders to obtain certain benefits, such as the opportunity to earn passive income.
Read on to learn about the various benefits available to utility NFT holders.
Utility NFT is a non-substitute non-fungible token, designed not only for collection, but also for utility. Click here to find out how they are elevating industries like gaming and fashion.
The Binance NFT market is full of NFTs, but did you know there is a class of NFTs that are designed for utility rather than just collection. Utility NFTs introduce new ways to interact, from virtual real estate to VIP passes. Below we briefly list a few practical use cases of current utility NFTs.
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So what exactly is a utility NFT?
Utility NFTs are a broad category of NFTs, and they all have specific practical use cases. Like any other NFTs, they are usually created through smart contracts and are unique. They are immutable, transparent and secure without exception.
Unlike regular NFTs, however, the core focus of utility NFTs is not collectability, but the real-world use cases, rewards, or benefits they provide to NFT holders.
Applications of Utility NFTs
Available as exclusive event tickets and merchandise vouchers
Perhaps one of the most relevant uses of NFTs is as digital tickets, allowing holders to watch exclusive events. In fact, some projects have started using utility tokens to provide holders with exclusive access to closed-door events. Because each NFT is unique, event organizers can verify these digital VIP tickets just like traditional tickets, and never have to worry about ticket fraud.
Applications in the game industry
There is no doubt that the NFT gaming industry has become a hot industry for blockchain. Since it is an integral part of the NFT gaming industry ecosystem and metaverse in general, it is not surprising that utility NFTs are used in the gaming space to facilitate currency transactions and gaming in general. This includes using NFTs to represent in-game exclusive assets and collectibles, or as valuable items that can be cashed out in a “play-and-earn” (P2E) model . For those who have never played blockchain games, they can sell game NFTs for fiat currency on secondary markets such as Binance NFT Market .
Applications in the fashion and art industries
Fashion and art industry projects have also introduced utility NFTs. Online auctions can sell digital copies of real-world luxury goods through NFTs , and successful bidders will then receive the actual purchase. With the development of augmented reality (AR) technology , users may also be able to try on virtual clothes in the fashion metaverse in the near future.
Also, unlike traditional NFTs (where the tokens themselves are artworks), physical artworks can be sent as proof of purchase, so art enthusiasts can curate and showcase their precious collections in real life. It is common to increase the utility of NFTs in this way, because the core of NFTs is to create unique digital assets, and their unique real-life counterparts will add value to NFTs and their corresponding physical products.
For the virtual real estate industry
We are about to usher in a new era of the Internet, and the Metaverse project has begun to introduce virtual land represented by NFTs. To own a piece of land, you just need to do your own research ( DYOR ), invest and accept the NFT plot. Some projects may also allow virtual real estate holders to become virtual landlords and rent out their land to others.
As a carrier of passive income
Different projects offer NFT holders the opportunity to grow their crypto holdings in different ways, including renting virtual real estate as described above. P2E games can also provide passive income opportunities through staking, and users can get rewards by locking NFTs in smart contracts. With more and more creative passive income opportunities, NFT owners will find their digital assets more and more useful.
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Binance NFT Marketplace Super Cool Utility NFT
Origins by Aaron Walker
This NFT series features three high production value music videos from Aaron Walker ‘s Origins album. NFT collectors and Aaron Walker fans can play the Aaron Walker Origins NFT Scavenger Hunt online. Fans can bookmark all NFT music video clips from the series, complete the entire music video, and all NFT holders can earn income through music video streaming on YouTube.
“Mystery” by Frank Mueller
This blind box collection includes 28 NFT design elements in four rarity levels. NFT holders will have a chance to win an NFT Metaverse watch, a Frank Mueller physical timepiece, and a chance to attend Frank Mueller private meet-and-greets in Dubai, Miami and Singapore, and a private tour of Frank Mueller’s home in The Watch Kingdom factory in Geneva.
Muhammad Ali Experience Blind Box Series
This blind box collection includes six video NFTs that fall into six rarity levels. Depending on their rarity level, each video NFT will unlock different benefits, including membership access cards for the upcoming Muhammad Ali Experience Museum and Muhammad Ali Experience Metaverse Museum , Muhammad Ali digital artwork, Muhammad Ali experience Signed canvas and a solid canvas exclusively signed by artists Mike Bundlie and Muhammad Ali’s wife Lonnie Ali, set with $500 gold flakes.
Conclusion
Even if you’re not an avid collector of NFTs, you might want to own utility NFTs like this, as they may offer you beneficial perks. Whether earning passive income or getting exclusive tickets to events and projects, utility NFTs have many uses and are likely to unlock more.
In addition to having unique NFT assets, the utility of NFTs also gives NFTs more value. In the future, NFT creators and platforms can continue to introduce new types of utilities to help foster an exclusive community of NFT owners. As Web 3.0 continues to evolve, the utility of NFTs will become increasingly prominent for both creators and owners. If you are an investor considering adding NFTs to your portfolio , you might want to consider utility NFTs, as they are more versatile and more valuable than pure NFT collectibles.
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Comment by Hans
April 24, 2024
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