What Can You Do With Non-Fungible Tokens (NFTs)?

I tried to explain the basics of NFTs in my previous articles. However, I still feel like there’s a gap in understanding how and where to use NFTs. NFTs seem to be perceived as existing only in digital art, but NFTs can be all assets we own in the digital world. These assets can make you own digital art, experience a game differently, or have a right to participate in a community.

After this short briefing, let’s jump into the “how” and “where” to use NFTs. 

NFT of Everything

First, I should mention again that anything that can be converted into a digital asset can be an NFT. These can be forms of art, music, website domains, GIFs, memes, or texts like poems or Tweets. It’s beneficial to look at NFT requirements and offers while buying an NFT. Keep in mind that you can always sell your NFTs. They are also a part of investment options! You’re purchasing an asset to use for something that serves you, not just for its intrinsic value.

The Type of NFTs

As you know now, there’re various types of NFTs in the market, and probably there’ll be even more exciting options in the upcoming years. Here are some of the fundamental types of NFTs for now:

Game NFTs

We know that game companies are rapidly adapting Web3 and combining gaming technologies with blockchain. But why is that?

It’s because the game industry is one of the most compatible sectors for the Web3 world. In-game items, even if they’re seen as in-purchase items, can be NFTs. NFTs purchased in games can alter the look of characters, give them special powers, or provide a different gaming experience. That depends on the game and what that particular NFT offers. 

Users spend money on in-game items for a long time. Today, this transaction can also be processed through cryptocurrencies. As a result, gamers can obtain an NFT. 

Art NFTs

As is often said, Web 3.0 establishes a decentralized structure and eliminates the intermediate platform. It’s because blockchain technology, the basis of Web 3.0, adopts a distributed structure. Therefore, when you purchase an art NFT, money directly goes into the artist’s pocket. So, that technology fairly protects the efforts of artists. 

Well, what can you do with your NFTs?

You can sell to someone else or create your own art collection!

Collectible NFTs

And perhaps one of the NFT types can answer your "Why are these NFTs so expensive?" questions: Collectible NFTs. Firstly, I should clarify that the critical thing here is “collection.” -Check CryptoPunks or BAYC- Why are these collections important? The answer is simple. “Community” and what that collection “offers.” When you purchase a piece from a collection, you become a part of its community.

Of course, you have all the privileges that the collection provides. Attending a weekend party with Eminem, who might be in your community, or sitting at the same table with famous business people might be just a few of these privileges. It depends on the offer your NFT provides! It can be unlimited invitations to all private parties, getting special power in a game, or gaining membership to a private club. These NFTs are also known as utility NFTs.

Profile pictures (PFPs) that you see on social media accounts are also related to these collections since your status in the community is shaped by these PFPs. 

Naturally, the prices of the NFT collections increase as the community strengthens. 

To Sum Up 

As you get familiar with NFTs over time, they’re not abstract concepts. It lives, develops, and becomes valuable. Meanwhile, NFT investors are trying to follow this momentum. For sure, you don’t have to see NFTs as if they’re investments only. You can create your own art gallery or enjoy your NFTs’ offers. I can assure you that what you can do with NFTs won’t be limited to these! 

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