NFTs have created a digital revolution, peaking a few years ago amidst the craze of Pudgy Penguins, Bored Apes, and Cryptopunks. 

You know they’re commonly used as profile pictures, and you may even be aware that some NFTs can grant you access to exclusive events or communities. But what are the best NFT use cases you might not be familiar with? We’ll share the top use cases for NFTs here in this guide:

• Collectibles
• Art
• Community Building
• Gaming
• Virtual Real Estate
• Music
• Event Ticketing
• Fashion
• Loans
• Physical Goods

We’ll even unpack some NFT business use cases specifically if you’re wondering how your company can join the movement and capitalize on this opportunity. 

Throughout the article, we’ll use ourselves as examples of NFTs, as Pudgy Penguins is currently regarded as one of the best NFT projects in the world. If you’re looking to get in one the fun yourself, we invite you to join us over here in the huddle!

What is an NFT?

First, what is an NFT? Non-fungible tokens represent unique digital assets that exist on a blockchain. This means they cannot be exchanged on a one-to-one basis like cryptocurrencies such as Bitcoin or Ethereum, or even traditional currencies. 

Each NFT has distinct properties and values, making them one-of-a-kind items in the digital space. This is where the NFT benefits lie - for creators and collectors alike.

For creators, these offer a new revenue stream and greater control over their digital works. NFTs can also include royalties, ensuring creators earn a percentage from secondary sales. For collectors, they provide a way to own and display unique digital items. 

You can learn more about the history of NFTs in our blog along with things like why are NFTs so expensive, how to transfer NFT to another wallet, are NFTs safe, where are NFTs stored, and more. 

But you came here to learn about the exciting NFT use cases for creators and collectors alike, and there are quite a few - so let’s get into them below.

What are the Best NFT Use Cases?

So, what are the best NFT use cases? Given all the different types of NFTs, the possibilities are virtually endless. There will likely be more exciting iterations to come as well, as the digital realm is expanding right before our very eyes. Here’s how NFTs will change the world…

Collectibles

Collecting things has always been human nature - but NFTs present a whole new way to go about it. Digital collectibles range from virtual trading cards to unique avatars. 

Platforms like CryptoKitties and NBA Top Shot have popularized digital collectibles by allowing users to buy, sell, and trade unique digital assets. Each collectible is verifiably unique, thanks to blockchain technology ensuring authenticity and ownership.

Collectors are drawn to the exclusivity and the ability to own a piece of digital history - even something as simple as a tweet can become a collector's item. Memes are being collected. There is no limit to what you can collect in the digital world.

But, the collection is just the tip of the iceberg. By owning certain collector's items, like Pudgy Penguins, you gain access to exclusive online communities and events, enhancing the overall experience for collectors.

Art

NFTs have opened new avenues for artists themselves as well as enthusiasts. Digital art can now be tokenized, providing artists with a platform to sell their work directly to collectors without intermediaries. 

This is allowing small creators to pave their own path in a way that previously wasn’t possible. Artists like Beeple have sold digital artworks for millions of dollars, showcasing the potential of NFTs in the art world.

What makes this one of the most exciting NFT use cases is the fact that artists can earn royalties from secondary sales. Smart contracts embedded in NFTs ensure artists receive a percentage of sales every time their art changes hands.

From the collector's perspective, this technology also means you never have to worry about buying a counterfeit piece. Blockchain technology provides a verifiable record of ownership and provenance, so authenticity is always at the forefront.

Community Building

NFTs can serve as access tokens to exclusive communities. Ownership of a particular NFT can grant entry to private clubs, events, and social groups. 

For instance, owning a Bored Ape Yacht Club NFT offers access to exclusive online and offline events, fostering a sense of belonging and community among holders. Or, with Pudgy Penguins, you gain access to the Huddle - a place to stay warm and cozy with all your other penguin companions.

These digital assets play a role in social identity as you can proudly express yourself and your affiliations by putting your NFT as your profile picture on social media. 

Gaming

One of the best use cases for NFTs is in the gaming world, as they’ve enabled true ownership of in-game assets. Players can buy, sell, and trade items such as weapons, skins, and characters, with each item being a unique NFT. 

Games like Axie Infinity have built entire economies around NFT-based assets. Some games employ play-to-earn models, where players can earn NFTs and cryptocurrencies through gameplay. This incentivizes participation and creates opportunities for players to monetize their time and skills.

From the business perspective, NFTs present a whole new way to monetize your game with in-game purchases. NFTs have also introduced the concept of interoperability, where assets can be used across different games and platforms.

Virtual Real Estate

Virtual real estate platforms like Decentraland and The Sandbox allow users to buy, sell, and develop parcels of virtual land. Each plot is represented as an NFT, ensuring unique ownership. This land can then be monetized by renting space for virtual events, advertising, or building virtual shops and experiences.

This is one of the NFT use cases that’s a bit more nuanced and difficult to grasp until you enter the space. But the benefit here is that virtual real estate provides a canvas for creative expression, enabling users to design and build unique environments and experiences.

Music

Musicians have long struggled with many of the same challenges of traditional artists - finding it difficult to connect with an audience amidst labels and gatekeepers that seek to profit off their talent. 

NFTs change everything, allowing musicians to tokenize their work and give fans unique digital copies of songs, albums, or even concert tickets. This allows artists to retain more revenue and control over their creative process.

Music NFTs can include royalty features just like digital art, too, ensuring the creator earns revenue from secondary sales. From the fan’s point of view, NFTs could get them access to exclusive content, backstage passes, or limited-edition merchandise tied to ownership.

Event Ticketing

Counterfeit tickets and scalping have been issues for decades, and this is another revolutionary example of NFT use cases. Each ticket is a unique NFT, ensuring authenticity and secure transfer of ownership.

Event organizers can take things a step further to include additional perks with NFT tickets, such as exclusive access to VIP areas, meet-and-greets, or special merchandise. After the event, the NFT ticket can serve as a digital keepsake, holding sentimental value for attendees.

Fashion

NFTs have recently entered the fashion industry as well. Designers are creating digital clothing and accessories that can be worn in virtual environments or displayed on social media profiles.

Fashion brands can now release limited-edition digital collections as NFTs, driving demand and creating a sense of exclusivity. 

Loans

NFTs can be used as collateral for loans in decentralized finance (DeFi). Platforms like NFTfi allow users to borrow against their NFTs, providing liquidity without selling their assets.

Smart contracts facilitate these loans with transparent and secure terms. If the borrower defaults, the NFT is transferred to the lender. This NFT use case opens up new avenues for accessing capital, particularly for those holding valuable NFTs.

Physical Goods

While the focus of NFTs remains on the digital space, brands like Pudgy Penguins have emerged with the idea of taking things back into the physical realm, blending these realities into one space. 

We’re the first to launch our own penguin shop with a variety of penguins toys and penguin collectibles, like a penguin stuffed animal or penguin figurine. What’s the point, though?

These each come with a unique digital adoption certificate, which can be uploaded on PudgyWorld to unlock special traits, play games, and interact with other members of the huddle in a whole new way.

Of course, you also get an adorable, cuddly penguin companion you can take with you through every step of the real world to keep you feeling safe and secure. These are great gifts for yourself or a loved one.

NFT Business Use Cases Specifically

There are so many other fascinating NFT business use cases as well, from loyalty programs to fundraising. Here are a few of the best NFT use cases form a business POV:

• Supply Chain Management: NFTs can provide immutable records of product origins, manufacturing processes, and distribution paths for transparency and authenticity of high-value goods.
• Intellectual Property: NFTs can represent patents, trademarks, and copyrights, providing a secure and transparent way to prove ownership and rights.
• Loyalty Programs: Companies can offer unique rewards and benefits to customers through NFTs. They can be traded or redeemed for products and services, enhancing customer engagement and retention.
• Real Estate Transactions: NFTs can streamline real estate transactions in the physical world. Properties can be represented as NFTs, simplifying the buying and selling process and ensuring clear ownership records.

If you have a business or are interested in starting one, chances are, there’s a way you can leverage the unique characteristics of NFTs. Just get creative!

Final Thoughts on the Best Use Cases for NFTs

There are so many incredible use cases for NFTs - by the time you finish reading this guide, a new one may have already emerged! 

From changing the game for artists and creators to helping individuals find a sense of community in a whole new way, there are a myriad of NFT use cases you can leverage to join the digital movement yourself. 

The common theme is that they offer verifiable ownership, enhanced security, and innovative new ways to interact with digital and physical assets across a multitude of industries.

You now know why people buy NFTs - and yes, people are still buying NFTs today in 2024. Learn more about how to buy NFT on OpenSea, where to sell NFT, or the best NFT marketplace in our blog. 

Otherwise, if you’re wondering what NFTs to buy, look no further than Pudgy Penguins! We have our own marketplace where you can view available current characters, or browse our physical shop. Whatever path you forge, we’re excited to have you as part of the huddle!

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