When NFTs (non-fungible tokens) became a prominent trend a few years ago, they were mostly known by the mainstream as a type of digital art or image that somehow used blockchain technology to create and store them.
For most people, the image and the NFT were the same.
However, this perception oversimplifies its range of unique properties. Images are in fact, just one type of file that can be linked to it. They can digitally store and represent much more than just image files.
In this blog, we will discuss 5 other data types that can be minted as NFTs beyond just simple images.
An NFT is a digital token issued by and recorded on a blockchain network with a unique ID. This identifier makes it possible to differentiate one token from another as they are transacted over the network. They typically represent some type of asset to make it easier to store, trade, and authenticate in the digital world.
NFTs can be minted or created using a platform service such as NMKR and the token itself can be stored within crypto wallets.
In the Cardano blockchain, an NFT is identified by the Policy ID which gives it a “unique cryptographic fingerprint” and value on-chain. This can be used for a single token, or for a token collection where each token shares the same identifier but with unique names.
The URL of the associated media type is recorded in the metadata of the token. In most cases, it points to a distributed storage network that records it. The images of NFTs are in these networks, but they can store more than just an image.
1. Sound
A sound recording can be recorded on a decentralized storage network similar to an image file. All the properties associated with visual data would also apply here.
An example can be sound effects.
Many sound engineers create sound effects which then can be used for videos, movies, games, etc. In this case, the NFT of the sound effect could be used to represent and enable the purchase of its license so that it may be incorporated into other works.
Another example is music.
Many musicians have found traditional streaming services to provide royalties that are too insignificant to reasonably sustain a music career. NFTs representing songs and music albums could be used to market individual songs directly to consumers and potentially provide higher royalties along with integrated payment options.
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2. Location data
People live in a world where satellite-based real-time maps provide coverage of nearly any location on Earth. Smartphones equipped with mapping applications give access to people to find certain places, connect and share specific location-based information with others, and more.
Beyond just general maps, this comprehensive coverage has been used for applications such as mapping farmland, oil fields, city planning, and even games.
NFTs can take a certain location on a map and make them “unique.” The metadata can create a collectible based on a location which then gives rewards to the person reaching a certain destination.
This function can be then used to create location-based campaigns and services within games, exercise apps, and many other business or recreational activities to incentivize users to go to certain locations.
3. Contract data
Legal agreements or contracts that bind two or more parties into a set of rules and stipulations can also be represented and recorded on-chain as an NFT. These would direct the outcomes based on certain conditions happening in the world.
This means each NFT would contain a text file that is recorded on a distributed storage network. The blockchain network that issues the NFT would have the ability to read token metadata and assign outcomes based on the information.
A contract deployed using an NFT would not only be a legal agreement, but it would also be self-executable logic that enforces results based on conditions that are met thereby creating faster business operations and enhanced transparency.
4. Game attributes
Today’s online games are populated by thousands of items. Each of these goods plays a role in the game’s mechanics. These attributes are contained in a server and are kept there under the control of a few hands.
An NFT can represent an in-game item and also contain the attributes of it in the metadata. The metadata can be mutable or immutable, it would be up to the game developer, but everyone would be aware of any changes made.
The combination of in-game items and NFTs with versatile metadata can create a new level of utility for games at large. Blockchain provides a secure medium and options for those developing a game while providing security to gamers.
5. Films and animations
Each NFT can also represent a piece of a large film, an episode of a series, a short film, or in some cases, an issue of a comic where turning the page is an animated action.
The NFT can then be used to access this film or animation and watch it or purchase it. This allows the owner to resell it later on NTF marketplaces if they no longer desire access to the media.
This can open a new type of distribution for those looking to create and distribute short-form film media to content creators or other media-related businesses.
NMKR is an NFT and Tokenization platform service leveraging the Cardano blockchain. It enables businesses and individuals to easily create NFTs by providing tools that do not require coding knowledge.
As an established platform, NMKR’s services have been used by businesses, gaming projects, creators, and more to successfully mint NFTs of various assets.
Its various products including NMKR Studio and NMKR Pay with multi-language support enable businesses and individuals to enter the Web3 space seamlessly and even provide traditional fiat payment options to mint NFTs.
Want to learn more about NFTs and their use cases beyond just images? Interested in asset tokenization?
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Disclaimer
You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by EMURGO to invest.
