The Fascinating Future of NFTs (In-Depth Look at 4 Industries)
When the internet first started to gain traction in the mid-90s, most people were basically using it for email, online forums, and the occasional bulletin board.
Frankly, we couldn’t really imagine using it for much else.
But as adoption increased and the overall technology improved, the internet ended up integrating itself into every single facet of our lives, in ways we never could have envisioned.
Well, believe it or not, blockchain and NFTs are at a very similar point in their own history.
You see, most people that are aware of NFTs really only understand them as a piece of digital art or a digital collectible.
When the reality is that NFTs are going to be so much more than that.
Just in the way the internet changed the world we live in, blockchain technology and NFTs are about to take everything we know and turn it completely upside down.
Here’s a look at how NFTs will change some of the biggest industries in the world around us.
Table of contents
- #1 – NFTs in the Event Industry
- #2 – NFTs in the Sports Industry
- #3 – NFTs in Real Estate
- #4 – NFTs in Music
- Closing thoughts on NFTs in different industries
#1 – NFTs in the Event Industry
If there is one industry that will start adopting NFTs sooner than others, it’s likely to be the events industry.
This one is pretty simple.
Forged tickets are a problem for both users and event coordinators.
Because of the enhanced security and verification of blockchain, NFTs help provide an easy solution to this problem. Tickets sold as NFTs are more easily identified and easier to authenticate on the secondary market.
If the event you are going to gives you some sort of certification, this could also be transferred to you as an NFT.
By making the certification an NFT (and coupling it with the actual ticket itself) it would make it easier for future prospects to ensure the certification’s validity.
We discussed in detail how digital wallets are going to define Web3 – and events will be a huge part of your wallet.
Eventually, you will be able to organize your digital wallet into different categories. This means you will be able to showcase a ‘trail’ of events that you have attended – both in the digital and physical world.
This means that you can show someone your digital wallet, and they will see the events you have attended over the course of the year or even your life.
Whether it’s an SEO conference, a Manchester United match, a Kanye West concert, or a TedTalk, all of these experiences can be showcased and stored in one concise location (your digital wallet).
This is extremely important for something that NFTs will help empower – enhanced digital self-expression. Showcasing the interests, events, and experiences you have had on your digital wallet will help people connect in new and interesting ways.
Tickets as collector’s items
Concert tickets are already resold as collector’s items – so why not in the digital world as well?
As opposed to tickets now, which are easily forged or replicated, having tickets stored on the blockchain means you can easily verify their authenticity.
#2 – NFTs in the Sports Industry
Similar to the events industry, sports can benefit from using NFTs for tickets.
But there are also other interesting ways that NFTs can help innovate the sports industry…
Not just for event tickets, but for all memorabilia.
How do you know if that Boston Red Sox jersey isn’t a knockoff?
How do you know if that signed Michael Jordan card was ACTUALLY signed by him?
NFTs will help with authenticity across the board.
Fan tokens are a new concept, but in theory, they could allow fans to have a say in certain decisions their favorite sports franchises make.
It’s sort of like a DAO (decentralized autonomous organization) – but one that is more focused on access, voting rights, and exclusivity.
Let’s create a hypothetical example…
Let’s say Mark Cuban’s NBA Team (The Dallas Mavericks) issues 10,000 NFTs. Each NFT costs $1,000 USD to mint and would be charged $1000 additionally annually. The Mavericks would also include a commission in the smart contract, saying that they would get a 15% commission on any re-sells on the open market.
In return, the NFT-owners get to be a part of a highly exclusive group with real utility. They can vote on things like new jersey designs and colors, player events, and more. They would also get 20% off any Dallas memorabilia for life, 1 free ticket per season, and have access to NFT-only AMAs with their favorite players.
For a sports fan, is the epitome of a win-win situation.
The fan wins because they get to interact with their favorite team, and be a part of the process. Plus the NFT is an exclusive digital asset that will absolutely appreciate in value.
And the Dallas Mavericks win because they just secured a way to generate recurring revenue of 10 million USD (not to mention whatever commissions they make on the open market) at a very low overhead.
#3 – NFTs in Real Estate
You may have heard about all of the digital real estate that is selling in places like The Sandbox and Decentraland – heck, it only costs $600K USD to be Snoop Dogg’s digital-neighbor.
But NFTs will also transform real estate IRL (in real life) as well.
Purchasing real estate
“Florida man buys a new home with cryptocurrency.“
It’s a true story. And that home was bought as an NFT.
This means that the title of the home (along with other related ownership and purchase documents) has been turned into NFTs, which means they will be stored on the blockchain network – a system that is more secure than current alternatives.
Fractional property ownership
Did you know that you can take an NFT that you own and divide it into smaller fractions?
We are already seeing fractionalized NFTs in the art world, but where it gets really interesting is in real estate.
In essence, property owners will be able to sell fractions of their property to investors by issuing tokens on the blockchain. Investors then hold their tokens and because of the smart contract in place, they will receive automated rental income, as well as a profit split upon sale.
As with all things blockchain, there are many advantages to this – mainly that there is no middle man to pay off, and making real estate investing more inclusive by lowering the bar to entry.
#4 – NFTs in Music
If there is one industry that NFTs will absolutely revolutionize, it’s the music industry.
This is an industry that is primed for a new wave of ideas – ones that empower artists AND their supporters.
NFT music platforms
Independent artists today can use platforms like SoundCloud to gain free exposure and Spotify to get royalties every time someone streams one of their songs.
But SoundCloud doesn’t pay, and streaming royalties from Spotify and Apple are infamously low.
Now, platforms like Serenade and Royal are changing the game by offering artists a new way to engage with fans and monetize their music. These platforms will help empower artists by giving them new ways to create revenue from their art.
The most ground-breaking thing that NFTs bring to the table is their smart contracts.
For example, artists can sell fractions of their songs, and in the smart contract, ensure that the new owner is now getting a percentage of streaming royalties for that song in perpetuity.
We are already seeing this done by major artists like Nas, Diplo, and Steve Aoki.
Music as an investment
What’s really interesting is when you start to tie all of this together and think about where this will bring the scene as a whole.
Right now, as fans of artists, we have the option of supporting them by buying their merchandise, streaming their music, or maybe even sending them a ‘thank you’ tip on Paypal.
But music as NFTs will change the game – they will give fans a bit more skin in the game.
For example, if you find an up-and-coming artist that you truly believe in, you can ‘invest’ in them by buying a portion of one of their songs. This cash immediately helps the artist, and in return, you get a small percentage of ownership in one of their works.
Then, if that artist were to make it big further down the line, and that song was to be streamed millions of times, you could end up making a decent payday on your investment.
This by itself is huge and has the potential to revolutionize the entire way we look at the relationships between fans and creators. Instead of it being one-sided, blockchain allows both sides of the party to have a sense of ownership in the entire process.
Closing thoughts on NFTs in different industries
While NFTs are only in their infancy and much of this is speculative – it’s all pretty cool, isn’t it?
We are entering an entirely new era of the internet and it will be utterly fascinating to see how different companies innovate with this new technology. We’ve only begun to scrape the surface.
If you are thinking of starting an NFT project of your own or your brand wants to dip its toes into the Web3-waters, be sure to reach out to a First Page digital strategist today and learn more about our NFT marketing service offerings.
Disclaimer – this article is meant to educate and entertain, but it is not financial advice. Please always be sure to do your own research.