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NFT Utility: Meaning, Examples, Ideas, & Best NFT Utility

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NFT Utility
NFT Utility
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In this article, you will learn everything about NFT utility including NFT utility meaning, examples of NFTs with utility, NFT utility ideas, best NFT utility, and so many other things.

When you mention the NFT to a digital novice, the first thing they ask is the value and benefits of holding an NFT collection.

Closing the year 2021, the NFT market has reached mainstream adoption at a very high rate, and this year 2022, the market shows no signs of slowing down either as more and more people are jumping into it.

With this high rate of people in the NFT market, hundreds of thousands of NFTs are being launched on different NFT marketplaces across the web,

However, simply creating or just owning an NFT is no longer that interesting for most people, especially those that started investing in NFT earlier and those looking to join the market.

NFTs with utility is highly considered as the future of the NFT market and that is why a lot of investors are looking and exploring the best NFT utility.

In the ever-growing NFT market, it has become a thing to discuss the need for an NFT project’s “utility.” People don’t just want to buy a piece of art because of how pretty it looks, but because of the real-life value, it offers.

Due to the new trend in utility NFTs, many beginners are looking into NFT utility meaning and how they can take advantage of this new trend to make proper NFT investments.

What is NFT Utility Meaning?

NFT utility meaning is the first thing to understand before exploring Utility NFT.

This is because aside from owning a piece of an NFT project, NFT has a use to the digital asset. So with a better understanding of NFT utility meaning, you can be able to know what you are actually going for in an NFT project.

NFT with utility or NFT utility means NFTs that have real-world values that are useful, profitable, and beneficial to their owners.

You may see NFT utility definition as to where a buyer receives a physical piece of art that matches the NFT art they bought, it could also be unique access to a live event for an NFT event you bought, redeemable exclusive in-person memberships, and rewards or towards a real-world project building element (such as the WOF Labs project).

Basically, NFT Projects that classify themselves as Utility NFTs are functionally useful in their values rather than being attractive.

Recently, there is a growing movement of making NFTs usable in several different ways. This movement toward adding utility to NFTs creates a different kind of value proposition for Utility NFTs, on top of their scarcity and collectability.

With the NFT industry being saturated with a lot of NFTs, investors are now looking for NFTs with real-life uses and not just collecting NFTs in the name of buying to resell, but in the value, it offers to the owner.

The trend of looking for the next big NFT art to buy and resell at a huge sum is over, even obtaining high-flying NFTs like these ones is quite slim.

So the new trend is focusing on NFTs with utility, purpose, and a strong community value. This is because one cannot go wrong investing in a project with solid real-world value.

The passive benefits of holding utility NFTs are one of the new hot trends, you need to jump on this year. Even Opensea has a separate category where you can easily find NFT utility.

NFT Utility Examples

Although the NFT utility trend is still growing and many creators who want to create something sustainable are already jumping into it.

If your intention is to jump into it, below are NFT utility examples that are already in the market.

1. NFT As Art or Artifact

Art is the most basic example of utility NFT. As mentioned earlier, buyers can receive the physical piece of art that matches the NFT art they bought.

Talking about the Utility in NFT art, An NFT can carry value by virtue of being either of historical significance or simply art for art’s sake.

For instance, CryptoPunks NFTs carry value by virtue of being a historical significance, this is because they were the first generative NFT project on the blockchain, and that carries certain importance in the history of NFT.

In the same way that owning a first edition of a famous novel, car, or piece of clothing can be seen as an investment, owning any of CryptoPunks NFT for historical significance always holds some value in the NFT industry.

Bored Ape Yacht Club (BAYC) is also adding utility to their NFTs owner by using the BAYC NFTs as a representation of VIP membership cards.

When you buy a BAYC NFT, you acquire access to a lifetime membership in the BAYC community. Additionally, you also have access to VIP parties, members-only games, as well as digital merch.

Also Read: What Is An NFT Company? Everything You Need To Know

Also, if an NFT collector chooses to own a piece of NFT art simply because of the emotional response it evokes, that will always carry some kind of utility which is in other words referred to as “personal utility” and this may not be a “bad investment”.

2. Real Estate

Another example of NFT utility is real Estate Utility. As a matter of fact, utility NFTs and real estate are made for each other and the real estate industry is among the few NFT-ready sectors.

Real Estate NFTs could be used to transfer land deeds, offer proof of land ownership, and also hold track of changes in property value over time with the help of timestamped NFTs.

Aside from that, utility NFTs can be used for the easy running of real estate transactions by speeding up transactions, enabling smart contracts for properties through automatic payments, and even establishing decentralized home rental services, while safeguarding sensitive data (such as credit card details).

With real Estate NFT, you can easily know every detail about the property you are purchasing with just a few clicks on your device.

Basically, one can be able to know when the property was built, who built it, its first buyer, and everything that changed in the property to the point of you buying it.

3. Health care NFT

NFT technologies have also been configured specifically to help the healthcare sector as well. A clear example is NFT Birth Certificates that can be given to every newborn by healthcare providers.

Issuing an NFT for each newborn baby in every hospital can be an effective way to easily create a lifetime individual identity on the blockchain that’s linked to the birth certificates, which can also be verified with NFT verification apps.

NFT ledgers also offer safer ways of recording sensitive medical data while still permitting authorized healthcare providers to have access to it whenever needed.

Recently,  hospitals, health insurance companies, and other medical entities are starting to explore ways blockchains could assist in the improvement of medical activities by validating patient identities and recording medical procedures conducted without tampering with patient confidentiality.

4. NFT Gaming

NFTs and the gaming industry is typical example of utility NFT because they are a match made in heaven.

NFTs, provide game developers with another source of revenue stream and ways of expanding their brand, while gamers are given more incentive to keep playing a game by earning NFTs while playing the game they love.

Initially, people play most games just to have some fun, without any financial rewards, but with NFTs, you can play your favorite games and still earn some rewards through owing in-game NFT assets.

NFTs also permit for a better time trading in games, which means one can also increase the value since NFT items in games can have a varying level of rarity.

With gaming NFTs, NFT owners are not easily open to scams because there is no middleman involved; every transaction takes place immediately through the blockchain.

This is the use case of utility NFT that is already being fully applied by games like Axie Infinity and other upcoming blockchain games.

5. Authenticity of Products

NFTs can utility in consumer products by ensuring that the product you are buying is authentic.

Since the blockchain can constantly store information about a product, checking for rarity and authenticity  of any product you are buying can be easily accessible through NFT

One of the most recent utility NFT projects in the consumer product industry is the Coca-Cola NFTs.

For many years now, Coca-Cola has been marketing its collectibles in the real world including the vintage German plastic cooler which costs $500.

Currently, Coca-cola has about four NFTs; The most significant one is a wearable NFT jacket inspired by their old delivery uniforms. This wearable NFT jacket adds utility in a process that the winning bidder for the NFTs gets a physical Coca-cola refrigerator; the SMEG FAB28 retro which was made in Italy.

6. Ticketing

Another NFT utility example is in the ticketing industry. NFTs will be used to replace the usual tickets in the nearest future.

For instance, parking passes can be replaced by NFT ‘tickets’ which means it will be assigned a unique ID that can permit you to enter the restricted venue for validation purposes.

This fixes problems related to ticketing fraud and also decreases paper usage as NFT owners only require one token rather than numerous copies of it (just the way we don’t print out our money).

The exact concept is also applicable with bus ticketing or other forms of transportation where payment verification happens at different parks during your journey through scanners.

How to add utility to an NFT

Add utility to an NFT
Add utility to an NFT

Basically, it’s not easy coming up with NFT utility ideas on your own, and it involves the knowledge of what actual value your NFT art project will offer to owners.

Like we said earlier, gone are the days when buyers buy NFT because they looked fantastic, now the desire is for your NFT project to be useful with values that are helpful for the long term.

If you just started the new trend of adding utility to your NFTa and you feel you don’t know how to, below are how to add utility to an NFT:

1. Create your NFT To Be Redeemable

Some of the great NFT utility ideas are connected to having redeemable NFT projects which may be in the form of goods, physical or digital.

As an NFT creator,  how to add utility to an NFT is by providing a specific painting redeemable when a buyer purchases your NFT.

This could be in the form of shipping the physical painting to them immediately after they buy your NFT, sending them a digital painting, or any special offer that is redeemable in the real world.

Another NFT utility idea is by hosting a competition where the buyer with the highest number of your NFT tokens gets a valuable product, for instance, original hand-drawn bonus art from you.

Many art enthusiasts love having access to original and rare art, therefore, offering this to your NFT buyers is how to add utility to an NFT.

2. Fit-in your NFT to the Real World

Another NFT utility idea is to find a need in the real world and come up with a way to connect it to the NFT world.

For instance, in the stock market, when investors purchase and hold shares, they get dividends based on the percentage value of shares they are bought or holding.

This same method is applicable to NFT, offering a percentage of dividends to the owners of your NFT after a particular period, is simply how to add utility to an NFT.

3. Make your NFTs an access pass to other benefits

As an independent creator, how to add utility to an NFT is by making your NFT double as a pass to access exclusive products, services, and experiences.

Your NFT owners could receive exclusive access to pre-sales of your future mega collections, access to your next show, or even just access to an exclusive discount where they can talk to you directly. There’s no limit to what you can offer as an access pass.

In addition to the above-mentioned, you may search for real-world areas where you can add value using your NFT and your buyers can benefit.

For instance, you can link your NFT project to particular content and then provide transferable ownership rights.

By transferable ownership rights, what we mean for instance is providing your NFT owners access to free online courses, and when the owner sells it to another buyer, the new owner will be able to have access to the same benefits.

However, it’s essential to know your audience, and what may be valuable to them. If your NFT owners don’t live in the same country, IRL events may not be useful to them so you search for something that will be highly valuable to all of your NFT owners.

4. Make your NFTs Usable in the metaverse

The third NFT utility idea is by making your NFTs Usable in the metaverse.

A case study is RTFKT, a fashion platform, that recently made a whopping $3 million in just 7 minutes of putting up virtual NFT sneakers for sale.

I know your question right now is “where will these virtual sneakers be worn?” Well, the answer is simply the metaverse.

If you are not familiar with what a metaverse means, this is a limitless virtual-reality space within which users can connect in a computer-generated universe and it is considered the future of NFTs.

As the benefits of NFTs grow within the metaverse, so will the utility NFTs configured to be used in it.

How to add utility to an NFT is by adding qualities to your NFT that will make it usable in the metaverse world. For instance, if you have NFT clothing, how to add utility to an NFT of that such is by making them wearable within the metaverse.

Best NFT utility

There are over 23 million NFT assets for sale on the largest NFT marketplace in the world, OpenSea, and even more on different other marketplaces.

The question is among all these NFTs that are cross the internet, which of them are the best right now when it comes to Utility NFT or NFTs with utility.

In this article, we have compiled the few best NFT utility in the market so far. We are going to classify them into different categories and then mention the Best NFT utility projects in each category.

1. Gaming/Metaverse

The gaming sector, especially metaverse gaming is among the sector that has the best NFT utility. These games range from World of Freight (WOF), Fractal, Metakey, Niftyville, and so on.

Another part of the gaming industry that has the best NFT utility is the in-gaming items NFT. Games with the best NFT utility in this category include Axie infinity, TreasureDAO, CryptoManga, NeoTokyo, Loot, etc.

2. Fashion/Luxury Goods

Also used in the Metaverse, the fashion and luxury goods NFTs are among the best utility NFTs in the market. The most notable of them include but are not limited to CloneX created by RTFKT, Arianee, and Jigen.

3. Ticket/Token Gates

When talking about the best NFT utility projects, ticketing and token gates are not left behind. Friends with Benefits (FWB), Whaleroom, and MeebitsDAO are currently championing this category.

4. Gambling/Sports

The gambling and sports sports industry also have the best utility NFTs to look out for if you are a sports enthusiast. This NFTS range from Coinleague, Slotie, UFC Strike, NBA Top Shots, Autograph, etc.

5. NFT Artwork/PFP

Another best utility NFT is artworks or PFP. NFT art is the most saturated NFT sector in the market and this comes with less valuable projects. In this category, the best NFT arts with utility includes; CryptoPunks, Doodles, Bored Ape Yacht Club, World of Women (Wow), Eternal Royals, etc.

CONCLUSION

The above article is about nft utility meaning, nft utility examples, Ideas on how to add utility to an NFT and the best NFT utility projects.

We hope it helps you find answers to any NFT utility related questions you are searching for.

Thank you for having time to read this article to the end and don’t forget to subscribe to our newsletter for more NFT related articles.

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