3 February 2023
NFTs are being used for real-world benefits in a variety of industries, from the hotel sector to fan-run music festivals. There's a new hotspot in Los Angeles that is really boasting of its exclusivity and is located between the famous Roosevelt Hotel and the Hollywood Walk of Fame. The Dancing Seahorse Club launched earlier this month, joining the ranks of other hip social clubs that provide members with perks like exclusive concert experiences and use of a newly renovated facility for special events. The music-focused firm isn't relying on yearly membership fees to make money, however; rather, this is rewarding early adopters with permanent benefits in exchange for their NFTs.
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The past year has seen the worldwide adoption of NFTs. In 2017, digital collectibles were mostly known for CryptoKitties, but they have since expanded to include digital artworks, digital music, high-end clothing for the Metaverse, and a medium for global communities to engage with one another. The number of individuals who hold NFTs has increased by a factor of two over the past year, from an expected 4.6 million to 9.3 million, according to data from Security.org published just before the current Crypto bear market. Whereas most Americans aren't prepared to buy NFTs just yet, the survey found that 16.3 million people are interested in making a purchase of a NFT in the upcoming year i.e., 2023.
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What are Utility NFTs?
Several NFT producers now provide IRL benefits to individuals who keep their NFTs, dispelling the myth that NFTs are just JPEG photographs or expensive fine art collectibles. A part of the unpredictability brought on by the Cryptocurrency winter as well as the precipitous drop in NFT trading has been mitigated thanks to this strategy of rewarding long-term holding. Utility NFTs are non-fungible tokens that may be exchanged for tangible benefits or experiences. Whilst several have desirable collectable features or are associated with vibrant artwork, their true worth lies in the myriad ways in which they may be put to use. Some NFTs, for instance, are now being utilized as an alternative to event tickets in order to cut down on fraud and price gouging, while others provide its holders access to both digital and real commodities in a one-to-one ratio. Several popular art-centric NFT projects, such as Bored Ape Yacht Club as well as Doodles, have included holders-only features such as the ability to conduct private events. To access those "token gated" gatherings, NFT ownership verification is typically required.
Consumers Experience NFTs with IRL Mints
Considering the promise of NFTs, the fact that certain stores as well as companies are starting to accept them as payment is not surprising. Companies who have successfully transitioned their products to NFTs have shown this, as well as a growing number of stores are bringing NFTs in-store. Salvatore Ferragamo, an Italian luxury fashion house, has lately shown this to be the case. The new Ferragamo concept shop in New York's Soho area debuted on June 24, 2022, the day following NFT NYC came to a close. Ferragamo at 63 Greene Street may seem like any other storefront from the outside, however once within, shoppers will be immersed in a Web3 shopping environment. During a preview, Daniella Vitale, CEO of Ferragamo North America, told Cointelegraph that the Soho shop is fusing technologies with the realm of elegance by including an NFT exhibit and a bespoke holographic shoe concept.
No Third Parties and Less Ticketing Frauds
Dancing Seahorse, along with other music-focused Web3 firms, may eliminate the requirement for traditional event tickets by adopting utility NFTs. Placing tickets on the blockchain may help consumers avoid ticketing frauds, which continue to plague the music industry, and reduce the need for third-party ticketing systems, which demand extra costs. Groovoo, a ticketing system, released NFT ticketing this year in response to those problems. The service enables event organizers to accept NFTs as payment for tickets, that lets them more easily track sales, authenticate purchaser identities, as well as maintain a complete audit trail of ticket purchases. Problems such as tickets theft and fraud have built-in answers thanks to blockchain technology. This is fundamental to the blockchain's design.
Importance of Bringing NFTs to Life
According to SuperRare's co-founder and CEO John Crain, having a physical art gallery coupled with NFTs gives a tremendous chance for both Crypto-natives and the Crypto-curious to discover NFTs. SuperRare is an interactive virtual platform which began in 2018. With this goal in mind, in May of this year SuperRare inaugurated its first brick-and-mortar art gallery in New York's Soho district. While it's thrilling to read about famous individuals purchasing Bored Apes, it's more amazing to watch a fascinating feature taking place as individual performers are given a voice because of advances in digital technology. It's not easy to take in, that's why it's so vital to have a real, brick-and-mortar gallery wherein locals could view the artwork and meet the artists and curators in person. Bringing digital NFTs to life in the real world has the potential to be transformative, but there are certain obstacles that might slow down widespread use. Mints at stores, for instance, might well be entertaining and educational, but they may still be too complicated for some people, particularly those of previous generations, who are just learning about Cryptocurrency.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.