4 unusual and creative ways to use NFTs

NFTs are for monkey JPEGs, right? Not always. The first major use case for NFTs (and it’s a potentially excellent use case) was digital art ownership.

However, they can do a lot more than just digital ownership, thanks to different NFT classes with different tools and features. Here are four other ways you can use an NFT.

There’s a sign for that

If you’re still catching up, yes, NFTs are tokens on a blockchain (usually Ethereum). But users can create different tokens for different purposes using different standards. Ethereum standards come from the Ethereum Request for Comments (ERCs) which are finalized in the Ethereum Improvement Proposals (EIP).

Different Ethereum standards are identified by the ERC number. This is an identifier assigned to ERCs based on the order in which they are presented. Here we refer to most Ethereum standards with their ERC number to introduce them and after that with a more palatable name. Not all NFTs we will talk about are ERCs. In fact, people are not on Ethereum at all.

Nowadays, with all the pressure to get into “Web3”, “the metaverse”, etc., it can be easy to just turn to minting NFTs. You can even find services that can do that for you. But doing a little research to make your NFT memorable (and even useful) can make a big difference. So make sure you use the right standards and protocols.

1. Virtual Ticket Stubs

Today, more and more of us are spending more time in remote events and events in virtual worlds. This can be quite disturbing if you like to hold tickets, event tickets, and other memorabilia. The good news is that someone invented a virtual ticket slip.

Evidence of Attendance Protocols (POAPs) are designed to be “the bookmarks of your life”. POAPs look like badges you might see in mobile games. While they are usually decorative, they sometimes give the holder special abilities, such as accessing community groups.

These are not an Ethereum standard; anyone can make them with no background knowledge to celebrate personal events that don’t come with a ticket or to celebrate the attendees of virtual events. For example, visitors received POAPs for attending the virtual premiere of the documentary’GameStop: Rise of the Players” in the Spatial virtual world.

2. Virtual goods in games and apps

A recurring theme here is that different NFTs can grant different titles and rights to the holder. When a person owns an EIP-721 token (the default NFT), he has certain powers over that token. If a token exists within a larger ecosystem, granting that ownership would complicate things.

The holder of a EIP-4400 token is a “consumer” rather than an “owner”. What they can do with this kind of token is more limited than what they can do with a 721 token. This ERC has been specifically suggested for use in “decentralized apps” where changing a token could negatively impact the larger project.

3. Proof of membership

There is a lot of talk about NFTs and identity. This usually means owners use image NFTs to signal to each other. However, one of the use cases for a specific type of NFT is to show membership in a different way.

EIP-3525 tokens generally have no monetary value at all. Their “value” is linked to how many of them are in a given ecosystem. Thus, these tokens can be used to do things like grant membership rights or vote access within an organization such as a Decentralized Autonomous Organization (DAO).

The tokens can be transferred, but not sold. Furthermore, each token is unique and identifies the holder. This can help to keep the democratic actions of DAO members transparent.

4. Loans and Rentals

Correct; there is even an EIP to make NFTs rentable. To be EIP-4907. Like other post-EIP-721 standards related to NFTs, this works by allowing limited access to a standard NFT.

This change to a default NFT allows an owner to assign its NFT to a “user” who has access to the NFT, but cannot modify or transfer it. After a specified smart contract period, the NFT returns from the user to the owner.

Why would anyone want to hire an NFT? There are countless reasons.

Holding on to the idea of ​​NFTs as essentially a provenance associated with digital artworks, remember that there are a growing number of virtual galleries. EIP-4907 could allow the owners of NFTs to more easily lend their NFTs to these galleries.

Also remember that an NFT does not have to be flat. Entire virtual worlds are increasingly being minted as NFTs. Imagine a virtual venue market where world creators make money by renting out their worlds for various immersive events. For example, the documentary premier mentioned above could have taken place in a virtual theater rented by a blockchain.

In addition, NFTs can be items in games. Need a special item to defeat a boss or complete a mission, but don’t have the coin to unlock it permanently? Maybe you can rent it from another player.

Consider the virtual horse breeding and racing platform ZED RUN. Players breed their own NFT horses to get different combinations of coats and traits. Do you only have one horse or do you want a trait that no horse in your stable has? Other players can have their NFT horses covered, so you can pay to access that NFT to breed your own horse.

This is where real utility comes from

Ever since NFTs started getting hyped a few years ago, people have been asking what their real usefulness was. Initially, these questions were difficult to answer, although many supporters argued that innovation would lead to more use cases.

These custom NFTs certainly help show how this once niche technology can find a place in future digital economies.

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