Every NFT item sits right in the middle of USELESSNESS and USEFULNESS. This means that it has the possibility of tilting towards any of the two options depending on how useless or useful it may be; put differently, depending on its “USE CASE”.
Therefore, we cannot separate the use case of an NFT from the NFT item itself, as it is sine qua non (indispensable) to its “existence” and worth.
WHAT ARE NFTs?
NFTs are Non-Fungible Tokens
In my post on Newbies Initiative Tutorial – Blockchain Games I made a clarification that NFTs aren’t some crypto coins, as some Newbies would think. Going further, I defined NFTs as:
A digital or electronic asset that represents objects in the real-world like: art, images, music, in-game assets, video and historical items.
However, in as much as NFTs can be “just anything”, being NFTs doesn’t grant them status of usefulness. Being NFTs just grant them the status of being digital assets; what they can make of this status depends solely on the item and its creator.
☆ THE NFT MADNESS
In the first Quarter of this year (2022), there was an upsurge in the minting, sales, acquisition and transfers of NFTs.
With the sales of Jack Dorsey’s first Tweet and the status that accompanied owning a Bored Ape NFT from the Bored Ape Yatch Community (BAYC), many people thought anything can qualify as NFTs.
Thus, the drive to own NFTs kept pushing people to purchase whatever they see as NFTs with the hope to resell at an incredulous price. Others had to sacrifice some Eth in order to mint some NFTs just to sell and make “quick money.”
Many people jumped into this “moving train” without really knowing much about it. They didn’t consider anything like USE CASE.
Well, reality has dawned on them now!
While the members of the BAYC can boast of some benefits of owing a Bored Ape NFT aside using them as Twitter Profile Picture, others have begun to regret their decision to purchase an NFT without a USE CASE.
Well, belemo has a special advice to give those who fall in this category (hahaha)
☆ NFTs USE CASES
By “Use Case” of an NFT we ask the specific questions:
Whether it is a piece of art/painting, image, music, videos, historical item or in-game assets, the same question still applies.
If there is no use case aside the fact that it is a digital asset, then such item will not be valuable.
Some of the Features or Use Cases of NFTs include:
- An NFT gives ownership status of the digital asset acquired via blockchain transparency. This favours the art and music industries, as they can help reduce/curb piracy.
- An NFT can be an item to be used in a Metaverse
- An NFT can be used as an item in a Massive Multiplayer Online Role-Playing Game (MMORPG)
- An NFT can be an item that can be collected, won, purchased, sold and used in a Blockchain game; here, it can represent game character, weapons, skins and colour, among others.
- Some communities like BAYC grant their community specific discounts, status and access to privilege information.
☆ WHAT ARE THE ADVANTAGES OF NFTs?
I came across a Tweet from ModernWarzone game and it read thus:
This implies that those who bought the in-game assets in Warzone Legacy just “WASTED THEIR MONEY.” Now, in Warzone 2, they will WASTE their money to buy these in-game assets, which will only benefit them if the game is functional.
If these assets were backed up by Blockchain and if they were NFTs, it will be easier for the owners to transfer these assets to the upgrade of the game, as well as to release newer assets. However, let them mourn the loss of their money; at least some of them enjoyed the assets in the game.
- From this scenario, we can see that in-game NFTs play a huge role as we not only enjoy the games and its assets, we also benefit financially by owning and selling them.
- Owning an NFTs grants you ownership right and it can be authenticated via blockchain.
- As an asset backed by blockchain, transactions done with NFTs are fast, secure and transparent.
- Transactions can be done anywhere and at any time.
- They can have multiple use cases: they can be used in the physical world (real estate, music) and they can also be used in the world of metaverse.
☆ DO NFTs HAVE DISADVANTAGES?
Yes, NFTs have disadvantages, and they include:
- NFTs are not liquid asset; you need to sell them off before you can get the cash worth the value of the asset.
- It takes minutes, hours, days, weeks or months to sell off an asset, and it relies solely on the availability of buyers or bidders.
- Their value and worth depend on the holders. If any of the holder decides to sell an item below the floor price, it reduces the worth of the whole asset.
I hope from this piece you understand that your NFTs are useless when they have no USECASE, but when they have multiple use cases, they tilt towards the angle of usefulness. However, remember, they are not liquid, and you need to “trade and acquire” with caution.
- Designs created with Canva Mobile App
- Links of some key terms from @leoglossary
Have you read these posts by me?
☆ DIARY OF A CONTENT CREATOR ON HIVE
☆ Did you know that there are more than 10 ways to Earn on Hive?
☆ SAY THANK YOU TO YOUR MENTOR ON HIVE
☆ Unravelling my Favourite Hive Author: The Story between the Storyline
I AM KSAM
I may not be your favourite author, but you can journey with me to help me develop my writing skills. I am always open to criticism, correction and learning 🥰.