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The field of non-fungible tokens began to boom in 2020. At that time, creators of digital objects could make big money on sales. Individual NFTs were worth millions of dollars (digital picture Everydays – The First 5000 Days). Over time, the hype around non-interchangeable tokens began to wane, and competition increased. In 2022, creators have to work harder to get investors interested. Truly valuable lots must deliver real value – opening up access to exclusive content, services, digital or physical assets.
What are utilitarian NFTs
An author can enhance an ordinary, non-mutable token by adding useful features. Such NFTs are called Utility tokens. They can be used in real life. Technically, they are no different from other unique tokens, but their holders receive exclusive rights or valuable items:
Community Membership.
Access to services or digital goods.
Tickets to real life events (a concert or conference).
Physical items.
How to add value to an NFT project
Technology allows you to tokenize any item, but the greatest value comes from NFTs that benefit the holders. The value of such artifacts often increases. For example, when an author gives users the ability to communicate, vote, or have unique rights in the community.
More often than not, NFT objects are pictures, but any asset can be tokenized. This includes music, social media posts, and software code. Developers can create multiple NFTs with different values depending on their usefulness. Non-interchangeable tokens are successfully used wherever it is necessary to prove rights to an object.
One of the promising industries is real estate. There is a lot of paperwork to fill out when buying or renting. NFT Utility can help reduce bureaucracy and increase transparency of transactions.
Instead of developing documents to prove ownership, you can simply use NFT. A digital certificate will give you access to a complete database and ownership history.
Connect to the real world
Non-interchangeable tokens can change the familiar reality forever. For example, they are allowed to be used to sell tickets to concerts, matches, and gym memberships. This will make the production of club cards cheaper and help avoid fraud. Data about the owner is recorded in the NFT code. This record cannot be deleted or corrected.
Most NFTs have no real use and cannot counteract the negative trend in the bear market. Utilitarian non-interchangeable tokens benefit holders and stand out from the competition. They can provide real benefits to holders. They are allowed to be used as tickets to sports games and events, to attract investment and as a stock counterpart.
Experts predict that utility tokens could take the lead in the market in the coming years. When the hype dies down, volatility will decrease.
