Connect the Real and Virtual Worlds with Utility NFTs

Supercraft Academy
August 11, 2022

Non-fungible tokens (NFTs) are all the craze right now. These blockchain-based tokens were initially thought of to be priceless possessions, for the sheer rarity quotient attached to them.

Anyone who held an NFT was revered in the community, for they were proud owners of the digital assets that represented a form of art.

But soon, the bubble burst. Why?

It’s because people began to realize that owning fancy-looking digital images in the form of NFTs doesn’t have much significance in the real world.

Sure, a lot of hidden elements such as a smart contract in the token that anoints you as the owner of a piece of digital art can make you feel special.

But that’s about it. That’s all that the NFTs did. That is, until the concept of utility NFTs got around.

So, what are utility NFTs and how can you make them? What are people even doing in the digital and real worlds with these utility tokens?

Let’s find out.

What Is a Utility NFT?

Simply put, a utility NFT is a non-fungible token that has some value in the real world, aka, a utility. It adds usefulness to the object being sold and makes it more than a piece of digital art.

It helps the buyer or consumer (or reader) solve a real-life problem, help them be profitable, or even engage them in real-world events that make them happy.

Utility NFTs make the owner feel valued, as if they are part of an exclusive club, while at the same time not keeping them confined to the digital world.

If you possess a utility NFT, you can showcase it in the real world - you can share on your Instagram wall or connect with other consumers or readers who are also proud owners of the same NFT.  

6 Utility NFT Ideas

All right, so utility NFTs connect a token owner - that is, consumer or reader - to the real world and allow them to associate their NFTs with tangible objects.

What kind of real-life objects are we talking about?

Well, the possibilities are quite endless and it could take multiple blog posts to cover all of them. But here are six ideas to help you get started.

News Reporting

Let’s say you are an independent news reporter and you assign yourself to cover a story from the Russia-Ukraine conflict.

Previously, that is, in the pre-NFT world, you would go out there, fetch your news, write your story, and then end up hunting for news channels that would buy it from you.

What’s worse, if no one did, you would eventually end up putting it up on a social media website, for free!

But now, with utility NFTs, the whole narrative can change. You still go to Ukraine and cover the war. Only this time, you create a utility NFT around your story.

When you come back from the news site, you can create NFT drops to sell your story as an exclusive piece of news.

News channels make a beeline for your story and whoever gets the NFT first becomes the absolute owner of your news report.

You can even create an NFT collection of different stories from the same report - and have an exclusive set of buyers pay for them.

Result? You sell your news at a much higher price than before. And the news channels / buyers get their share of the value by virtue of first access to exclusive content.

Events and Show Tickets

Here’s good news for organizers of book launches, movie shows, art exhibitions, and similar events.

You can use utility NFTs to invite people to special talks, screenings, behind-the-stage events, and so much more. See our blog, 'NFT Ticketing.'

Let’s say you have published a book. Congratulations! And now you want to market it through a book launch.

You can, of course, go the traditional way of inviting people to the launch (for free) and going through the usual conversations and book signings.

With utility NFTs, you can crank it up a notch. You can schedule one-on-one interviews with the author (you) or organize a close circle of talks with other contemporary authors as well.

But you don’t provide access to these special events to everyone.

You reserve it only for those who have purchased utility NFTs of your book.

This way, the NFT holders feel privileged to gain admittance to special events. And you, well, you make more money and an intimate circle of followers.

Special Content Access

What makes a book or a piece of art special? Well, it has to have something unique, such as a rare edition of a magazine that was published decades ago. Or, a book with a cover illustration that was used only in a dozen printed versions. It could even be a secret or an additional chapter that elaborates the story of a novel.

How do you ensure only genuinely interested people get access to such special content?

Simple, with utility NFTs.

A good example of such kinds of NFTs is what author Blake Butler did with them.

He turned his novel, Decade, into an NFT GIF, which, by the way, is available on OpenSea – the largest NFT marketplace – and saw its sales soaring even when no publisher wanted to print it.

Why did that work? The people who were buying the NFT believed, and rightly so, that they were getting a priceless edition of a never-published novel from a renowned author.

Gaming and Books

Gaming is one area where utility NFTs are finding the most exciting range of use cases. Games like Axie Infinity are allowing gamers to purchase in-game NFTs to gain private access to parts of the game.

Through NFTs, participants of such games can purchase collectibles and get involved in in-game trading as well.

Some of these games are designed on a play-to-earn model, where buying and selling in-game assets can make you money. Some utility NFTs can also help you purchase special assets that allow you to progress faster in the game.

What if you could write your book like a game? What would the NFT possibilities around it be?

Think about it! Also, see our blog, '10 Awesome Video Games You Didn't Know Were Based on Books'.

Real Estate in the Metaverse

When we think of real estate, we usually imagine skyscrapers, vast pieces of land, sprawling mansions, and the like. What if we told you utility NFTs can buy you all of this?

But wait, here we are talking about real estate in Metaverse, the alternate digital universe.

Before you question the value of such real estate, you should probably know that the lines between real estate in Metaverse and properties in the real world are diminishing as we speak.

Proofs in point are recent Metaverse land purchases made by real-world biggies such as Adidas and Samsung.

So, what do people do on these lands? It depends on your brand and how you want to use it.

For example, you can buy land and host virtual events where consumers / book lovers pay for tickets through utility NFTs or attend live talks / events from the comfort of their homes.

Adidas, interestingly, is going to use their land to provide NFT holders with guaranteed access to many of its physical products. Which you as a writer can do too.

Artefacts

Last but not the least, utility NFTs can be used to generate value from the original adopters of non-fungible tokens – art.

While previously a holder of an NFT for any digital art would just have the token to show for, utility NFTs make it possible for the holder to own a physical piece of the art.

This possibility helps NFTs form a bridge between the digital and the physical world.

For instance, if you have the first edition of Stephen King’s novel The Shining, you can sell utility NFTs to someone interested in paying the real value of the piece, while also promising to deliver them the physical copy of the book so that they can exhibit it.

Getting Ahead with Utility NFTs

Now that you know what utility NFTs are, what do you do to stay on top of the game? It’s simple. Have fun building your NFTs. Just because they are ‘utility’ doesn’t mean they have to be boring.

There are a plethora of options you can dive into to create the unique NFTs that you and your followers would love. The boundlessness of uses which NFTs can be put to makes creating them an adventurous ride.

We have only skimmed the surface when it comes to the multitude of options that utility NFTs have to offer.

So, if you are an author brimming with ideas about how to market your next book or a journalist excavating your next story, throw on your creative hat and start designing the most fascinating utility NFTs.

And if you feel a little overwhelmed at first, Supercraft is happy to help.

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