NFTs have become one of the hottest topics tied to decentralized finance and blockchain. Back in 2020, NFTs became one of the most-covered concepts by analysts working in a variety of sectors. In particular, art and finance were expected to evolve thanks to the emergence and trading of NFTs.
Since then, uncertainty has surrounded NFTs. The first applications of NFTs had little to do with art and finance, specifically. Instead, NFTs provided a brand new way of collecting digital assets. Most of these were tied to art, like CryptoKitties and CryptoPunk art. And they did use blockchain to run on, which tied NFTs to cryptocurrency.
However, CryptoKitties and the like weren’t actually revolutionizing life for the average artist. Nor were they interrupting the usual state of finance. The most successful public project came from the NBA and Dapper Labs’ TopShot marketplace, which has since plummeted in terms of value since skyrocketing in early 2021.
Looking forward, how will NFTs become part of the entertainment industry—beyond early forecasts related to art and finance? Let’s explore emerging applications for NFTs in 2023.
A Variety of Uses in Gaming
If there’s one entertainment sector that’s ready to onboard NFTs, it’s gaming. In the US, in particular, the rise of online casinos has created a large market where NFTs could potentially explode in usage and popularity. At the moment, promo codes from WynnBET and other leading platforms can be used for standard games like slots, blackjack, and roulette.
However, NFTs could become a part of this digital gaming arena. For example, NFTs could be used as in-game assets and payouts rather than real money. They could be kept or traded when it’s time to withdraw. Similarly, NFTs could be offered to VIP players as part of a rewards program.
The same goes for the broader video game sector—and even mobile games. Let’s cover another example tied to the fashion industry. Luxury brand Louis Vuitton released a mobile app, which is a game that rewards players with NFTs. These NFTs can then be exchanged for in-store goods and other offers.
A Case for NFT-Art
Let’s loop back to one of the original use cases for NFTs. They were apparently going to revolutionize how artists create, market, and profit from their work. But with so much technical finesse behind NFTs, blockchain, and crypto, not many artists found it accessible. In fact, NFTs and art quickly proved non-compatible for the average creator.
But could this change in 2023? For now, one of the biggest challenges is learning how to adapt physical artwork into an NFT. After all, a very limited number of artists around the world use a totally digital setup and medium. But with more minds now figuring out how to connect physical projects to NFTs, this could change rapidly.
Evolving Event Organization & Smart Contracts
The most promising case for NFTs influencing entertainment is through one of its most mundane facets: event organization. Though not nearly as flashy as NFT art projects or an NFT slot game, it’s certainly the most applicable—and is already being used today by various companies to streamline and optimize their event organization.
That’s because NFTs can be used to help guests, organizers, and artists. From a visitor perspective, an NFT can be used as a ticket for entrance and can then be a digital asset that helps them pay for merchandising and food and beverage. No more credit cards or cash needed.
From an organizer’s perspective, exchanging digital currencies simplifies the process of allocating funds. All the revenue earned from sales goes into a single pool and is then distributed evenly (through automation) to all employees. All an organizer has to do is set input protocol for these allocations—the rest takes care of itself.
Lastly, from a performer’s perspective, NFTs can be used to create unique memorabilia and merchandise for fans. It can even be used to offer something exclusive for VIP members, which could be specific to that event. Going forward, NFTs are slated to become an increasingly important facet of event organization.
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