Industries That Could Benefit From NFTs in 2022
From gaming to fashion, NFTs are finding uses in various sectors. Due to celebrities and huge brands, such as Nike and Louis Vuitton, getting in on the action, non-fungible tokens are becoming normalized. So how could NFTs benefit different industries in 2022? We look at some sectors that are likely to adopt this new technology.
2021: The Year of The NFT?
Non-fungible tokens took the limelight in 2021, and serious money was made despite major criticism for their negative impact on the environment. Many estimate that the sales volume of NFTs was above US$27 billion in 2021, as more and more companies invested in the technology.
Non-fungible tokens are a unique type of cryptographic asset, meaning each one is different from the next. They often represent digital collectibles that can be owned and traded just like traditional physical collectibles. Like cryptocurrencies, NFTs are created using blockchain technology, which allows the unique tracking of each token.
However, NFTs aren’t just limited to digital collectibles. Any tangible or intangible asset can be turned into digital tokens. For example, movies, songs, and even real estate can be tokenized. Because of their flexible programmability, NFTs can be used in numerous industries to enable trustless digital ownership.
Sports Betting Industry
With the gambling industry estimated to be worth more than $516 Billion, many see it as an effective and lucrative way to grow the NFT market. Although gambling with cryptocurrencies at sportsbooks isn’t new, only recently have we seen the integration of NFTs.
However, after sports betting operator DraftKings launched its Marketplace NFT transaction service in cooperation with former NFL player Tom Brady’s Autograph platform, expect many other sportsbooks to follow suit, and look at new ways to use this technology.
For instance, the NFT market could design gambling projects aimed specifically at fans. These could be in the form of actual game tickets as betting prizes. NBA teams such as the Dallas Mavericks are already planning on creating tokenized passes to their games, so this idea could be a viable option for online bookmakers.
NFTs could solve the counterfeiting issue that costs luxury brands around $98 billion every year. Many brands are already trying to tackle this problem with blockchain projects like VeChain and Omisego that offer authentication services on the blockchain. Yet, NFTs could solve this problem more efficiently. For example, when customers buy an original item, they could simply obtain an NFT that would prove the product’s authenticity if the owner decided to sell it in the future.
This industry is full of possibilities for the NFT industry. They could be sold as tickets to events (as stated above), access passes to certain venues, and even experience tokens. Because NFTs can turn into experiential products, more and more people will likely choose community-run productized experiences that can be authenticated and showcased through this technology.
The Real Estate Industry
While crypto prices have led people to explore real estate investing, few are aware of the Metaverse. This decentralized platform lets you create and manage your own digital assets and identities. You can then sell these digital lands on NFT platforms like OpenSea, Rarible, and others.
This digital real estate is a location within a virtual world that attracts the attention of that world’s users who use the space to collaborate and socialize. Currently, Decentraland, CryptoVoxels, and the Sandbox seem to be the three most popular virtual worlds. Land in key positions can be sold for hundreds of thousands of dollars on these platforms.
Famous influencers, sports stars, and sports teams are using their leverage to create NFTs to expose their brand to a new audience. NBA Topshots has embraced the technology by selling basketball highlights for large sums of money, bringing attention to their brand. These headline-making transactions have helped expose the sport to new audiences. Similarly top athletes have announced they will receive their salaries in Bitcoin, bringing crypto more “kred”, and of course athletes and sports teams are already in the NFT world, and the metaverse.