How NFTs will help drive mainstream Web3 adoption

Source: AdobeStock / denisismmagilov

Ken Timsit, is the President of the Blockchain Startup Accelerator Chronos Laboratories And Chronos series.

Non-fungible tokens (NFTs) are perhaps the most publicly followed hype cycle, with celebrities from Justin Bieber to Madonna dropping NFT collections for their fans over the past couple of years.

Without understanding the potential benefits of NFTs as being powered by the underlying blockchain technology, the average person would risk writing them off as just “million dollar JPEGs.”

This mischaracterization of NFTs is a major stumbling block to mainstream adoption of Web3. Enter utility NFTs.

NFTs designed to provide tangible benefit to their owners via rewards and other perks may, in fact, be the key to Web3’s widespread adoption. By offering real-world benefits, this might convince non-coders to test the Web3 waters.

Here are six use cases for NFTs, all demonstrating how utility NFTs can benefit their holders while at the same time insulating the space against future hype cycles to create a stronger Web3 and increase mainstream use.

1. NFT Membership

Imagine exclusive Soho Housebut instead of membership via referrals and direct debits, people are given access by purchasing a Soho House NFT.

companies like Mandala Club It has already started harnessing the potential of NFT memberships, selling them at price tags of up to S$15,000. Benefits offered through NFT membership include access to exclusive newsletters, Discord channels, interviews, and events.

Not only do NFT memberships provide a streamlined means of member verification, but they also allow for peer-to-peer sales and trading enabling the value of a particular membership to estimate with demand through secondary trading and sales.

Examples in the cryptosphere include black loader And Monkey Yacht Club Boredom (BAYC) Memberships. The Loaded Lions offers members VIP experiences, gifts, and priority access to select NFT drops.

A BAYC membership, on the other hand, gives owners access to members-only areas, real-life events, and special merchandise. Just as event organizers are now resorting to Evenbright For ticket sales, NFTs can be used as a channel for membership sales, serving as a way to get more regular users into Web3.

2. Leading Phygital Experiences

Besides virtual ownership of assets, the concept that coined “phygital” connects physical goods and services to the digital world via NFT sales. This may happen when a buyer receives a physical item through an NFT purchase.

Besides just digital art, NFTs are used as a medium for real estate sales in the real world.

Another iteration of “phygital” occurs when the purchase of a particular item provides buyers with a digital copy in the metaverse. Adidas“Into the Metaverse collection” shows how this can be achieved in real time.

With an 84% loyalty rate among US customers, companies like Adidas can leverage their influence to lure customers to Web3 with Phygital NFT offerings.

3. Metaverse brand

Combined with the allure of Phygital NFT offerings, NFTs in the metaverse enable companies to carve out a new addressable market at the frontiers of branding and advertising.

With increasing recognition and momentum, the metaverse presents companies with a world of new real estate to consider for their marketing efforts.

Big brands like Nike And Gucci They drop NFT collections for owners to claim digital versions of their products. As a result, users can dress their favorite brands in the metaverse through new forms of digital expression that are enabled through augmented and virtual reality.

In turn, loyal customers may find themselves more likely to join Web3, with a whole host of brands they already know and trust.

4. NFTs in games

NFTs allow players to purchase assets and features within blockchain games, effectively allowing them to buy into the communities they love.

Unlike traditional in-game purchases, NFTs allow assets to be transferred from one game to another and controlled by the owner rather than the game.

This extends the lifespan and value of in-game assets, returning power to players. The autonomy granted from ownership of NFT assets provides an incentive for traditional players to move to blockchain gaming, providing a way to include an additional user pool to Web3.

5. NFTs for DeFi rewiring

Similar to the unique benefits NFTs can offer to their holders in a membership setup, the unique non-fungible nature of NFTs can provide holder-specific positions and benefits within the decentralized finance (DeFi) landscape.

Currently, DeFi users often experience periods of illiquidity when buying cryptocurrency to earn rewards. However, NFTs offer an alternative that can be easily traded, removing illiquidity issues when users would otherwise have to lock in their protocol tokens for specific periods of time.

In addition to this, DeFi protocols can also add elements of manipulation, providing users with benefits such as NFT Staking boosters, exclusive allow list access, and fee rebates to name a few. VVSGotchi It does this by offering tangible benefit to the VVS Miner Mole NFT pool through experience points that can be used to earn higher rewards on accumulated NFTs.

DeFi protocols can also determine the scarcity of their NFTs, allowing value to match demand.

The examples provided show how NFTs can enrich the DeFi ecosystem with additional functionality while reducing volatility risks. In doing so, NFTs will help build a more robust DeFi landscape, creating greater attraction for new and existing users alike.

6. Gamification in health and social media

Through the use of NFTs, transforming traditional industries returns the power to users by increasing data ownership and monetization opportunities.

For example, one can mint their health history in an NFT and sell it to third parties who are interested in the data. Besides, projects aimed at healthy gains are already entering the fray, such as Stepenwhich allows users to earn rewards for the steps they have taken.

With royalties automatically accruing to the content creator, using NFTs in conjunction with the wellness industry provides users with new and innovative revenue streams.

While social media giants like Instagram Providing users with NFT offerings, launching features to allow users to sell and sell on existing platforms, a new generation of decentralized social media has entered the mix.

New projects like DeSo And lens protocol It is poised to provide users with a fully native Web3 social media experience with features such as creator coins, micro-gratuities, and gas-free NFT minting.

The unique revenue streams that gamification provides to both health and social media through NFTs provide users with means to monetize the things they already do for free.

Results? Two large addressable user bases are able to support the use of NFTs in the mainstream.

NFTs: Spurring Web3’s Mainstream Adoption With Utility

Rather than having to rely on state value or quick deals, NFTs will be able to add a more feasible long-term value proposition to countless industries around the world.

By considering the functions provided by the underlying technology, ordinary users can reap the benefits offered by NFTs without worrying about market fluctuations or price fluctuations of certain assets.

In doing so, NFTs will serve as a catalyst to drive mainstream adoption of Web3 by supporting, simplifying, and strengthening existing verticals rather than completely dismantling and reconnecting them.


Learn more:

– Luxury brand Gucci is teaming up with bored monkey creator Yuga Labs for Project Metaverse – Is cryptocurrency building on the rise?
– EXCLUSIVE INTERVIEW: Tether co-founder says crypto industry will bounce back despite past failures – here’s why

– A new crypto startup that lets users send NFTs using phone numbers – Is this the future of NFTs?
– Spotify’s latest experiment: unlocking playlists with NFT holders – The future of music streaming?

India’s advertising watchdog has released new guidelines for crypto ads
– The UK advertising regulator sends a ‘Notice of Enforcement’ to crypto promoters

Game giant Sony patents files to enable NFT portability across games and consoles
Amazon To Enter The Crypto NFT Market With Its Gaming Initiative – Here’s What You Need To Know

– Beginner’s Guide to NFTs: What You Should Know
– Top 10 NFT Markets

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