A lot has changed in the NFT space over the past year. Whereas in 2021, non-fungible tokens fully exploded, in 2022, Web3 saw the maturation of the NFT space accelerate thanks to a bear market. Sure, artists still found ways to support themselves, and NFT collectors became prominent Web3 builders, but the wild west that was the NFT market cooled off significantly.
Of course, this is not a bad thing. Far from it, in fact. While numerous investors and influencers quickly fell silent when the multi-million dollar profits stopped coming, the NFT space as a whole was boosted. The collectibles and large-scale PFP projects that dominated the market began to wane, and other often overshadowed use cases began to move forward.
But we’re not just talking about the secondary NFT sales of Sound.xyz music. crossing $5 millionor photography NFT editions go viral. While these are undoubtedly significant achievements for artists, advancements in blockchain technology and a crossover from Web2 to Web3 have helped solidify a number of strong NFT use cases that could have the potential to change the metaverse just as well. as we know it. In 2023, these growth sectors will certainly be worthy of attention.
Ticket sales and proof of attendance
Perhaps one of the most underrated sectors of the NFT market is NFT ticketing. Considered by many to be a boon for the future of live events, NFT ticketing is just what it sounds like: tickets in the form of NFTs that live on a blockchain that act as access passes for any live event. (or even virtual).
With NFT tickets, ticket issuers and recipients can benefit in a number of ways. Issuers can keep a more detailed record of attendance numbers using the blockchain as a ledger, while simultaneously interacting with ticket holders in a new and innovative way through NFTs. Issuers can send out notices, host surprise giveaways, create token-controlled sites and services, and more simply by collecting data associated with the holders of a specific NFT ticket.
On the other hand, event attendees who do not issue NFT tickets can also receive rewards after the fact. With POAP, Proof of Attendance Protocol, users can create and issue badge-style commemorative NFTs that can provide many of the same utilities as NFT ticketing. Users often only need to scan a QR code or enter a specific phrase to collect a POAP, making the barrier to entry significantly low and accessible to those unversed in blockchain technology.
While NFT ticketing and POAPs may seem like just a fun incentive for event attendees, they have continued to be useful for project founders to keep track of early backers. It wouldn’t be an exaggeration to say that both NFT and POAP tickets are helping to change the way we think about fandom on Web3.
membership passes
While it is true that NFT-based memberships grew and developed alongside PFP projects, they have since become their own unique sector of the NFT market. Primarily used by brands and programs, these types of NFTs act as access keys to unlock incentives and rewards for those who own them. Often, NFT memberships are applied through “token-gating,” which uses blockchain technology to verify ownership of an NFT and grant holders access to any member-only benefits offered. This can be implemented on Discord servers, in-person or virtual events, and more.
One of the earliest examples of NFT memberships is the Bored Ape Yacht Club. Just by owning a BAYC NFT, holders have access to merchandising releases, music festivals, subsequent NFT releases, and much more. projects like linksDAOLoudPunx and Flyfish Club remain two of the most ambitious membership efforts, while platforms like Friends with benefits and OneOf have become archetypes for organizations looking to launch membership passes.
Some NFT efforts have even gone beyond the idea of a simple membership pass, bringing co-ownership and voting into the mix. Carry radio carpet, for example. Created by prominent influencer and builder Farokh to be a decentralized Web3 media platform, the spirit of the project is to be for the community and for the community as a platform owned by its consumers. Because of this, Rug Radio aired NFT Membership Pass, which give their holders the ability to vote on proposals and participate in important decisions. In a dystopian future, perhaps even general elections could be handled via Soulbound Token (SBT) connectivity on the blockchain.
permanent records
If that dystopian future were to emerge, the first major NFT use case we would encounter would likely be NFT used to manage permanent records. Rather than rely on irrevocable longevity to legitimize property and capital, or save vulnerable paper records to pass down from generation to generation, SBTs could give us a better way to verify important information.
And ownership records are just a unique feature of these NFTs proposed by Ethereum co-founder Vitalik Buterin. Designed to function as a comprehensive set of tools for online users to preserve and protect their identity, if SBTs are launched as planned, they will have a significant impact on our daily lives, both online and offline. Through SBT, medical records, academic records, employment histories and everything in between can be minted as an NFT with immutable and non-transferable ownership.
While it is true that SBTs might not be possible at scale until a decentralized society is achieved, there is growing evidence that they could become a reality by 2023. But where? Well, aside from Buterin himself alluding to the possibility that they could (have been) implemented by the end of 2022, companies like Moonpay have already announced efforts along the same lines as SBTs. Maybe it’s just a matter of time until we see the first real-life use case achieved.
physical x digital
In 2022, the NFT space witnessed the rise of “phygital” products. Characterized as a fusion of the physical and the digital, phygital has built another layer on top of the concept of digital property, allowing artists and developers to turn their physical creations into NFTs, and vice versa. Although the term phygital itself has gained opposition due to its abrasive phonetics and basic acronym nature, the popularity of such products is undeniable.
Phygital products exist in a variety of forms. From toys to collectibles and even more traditional art forms like sculpture and painting, the line between physical and digital keeps blurring for Web3 creators. However, one of the most popular use cases to emerge from this new market sector has been wearable devices. This is perhaps best illustrated by companies like 9dcc and RTFKT, who continue to produce NFT-powered shoes, shirts, and other fashion items.
And while fictional items sound a bit futuristic, digital item wearables have been around for a long time through video games like Fortnite. In fact, the Fortnite skins were what first inspired 9dcc founder Gmoney to venture into digital collectibles in the first place, as he saw the potential of digital ownership and the importance of future generations understanding that potential. If investment giants like him and fashion powerhouses like Nike keep an eye on phygital, the rest of Web3 would be smart to do the same.
Artificial intelligence
Like it or not, artificial intelligence is here and it seems that it is here to stay. Of tools like ChatGPT proliferating in almost all industries to AI-generated art becoming a hot and contentious topic between online communitiesthe AI boom we are experiencing now is similar to, if not greater than, the initial NFT boom of 2021.
However, it is almost certain that AI will have a greater reach and impact on society at large than even NFTs can achieve at the moment. Of course, this also includes its impact on Web3. In fact, many prominent artists in the NFT space already use AI collaboration in their workflows. But it’s not because of the latest AI boom, but because of the digital nature of the NFT space in general, where developers, artists and programmers converge. So why should we be monitoring AI in 2023?
Well, because it has made such significant progress in the last year. With the advent of DALL-E, ChatGBP, and other tools, the ethics of creating and selling AI art have been called into question. While many critics fear the new paradigm of AI art, others have accepted it as inevitable. But even so, the work created by AI currently lacks the “human authorship” necessary to grant rights intended to protect the artist. A slippery slope, indeed.
What other thing?
Regardless of gains and speculation, the five use cases listed above are undeniably prominent within the NFT space as we enter 2023. Some may disappear, others could come to dominate the market entirely, or perhaps a force could emerge. invisible and change course. ecosystem even more. However, surely each of these NFT innovation cases has helped, if only a little, to bring the conversation about the usefulness of blockchain technology in modern society from niche to mainstream.
