What are Utility NFTs?

An interesting article that I read recently highlighted the role of John Haegele, a sports media veteran as one of the pioneers of utility NFTs.

In the mid-2010s, John was deeply involved in the blockchain and was already utilizing “NFTs” as a means to reinforce the security and transparency of sports ticketing. If anyone tried to sell fake tickets, they could no longer do so because the tickets would be non-fungible and visible on the blockchain.

This was back when the term “NFT’ wasn’t so frequently used and John had already found utility for this technology.

With art, the valuation of an NFT is tied to the artist’s personal brand, their marketability, and collectors’ sentiments about their future potential. Here, valuation is highly subjective. With digital collectibles, the value is tied to scarcity. Here, valuation is tied to computer-generated scarcity.

Utility NFTs or NFTs 2.0 on the other hand are the future, based on user demand, and offer a broader range of practical NFT applications. Purchasing or holding a utility NFT, for example, can grant access to exclusive experiences, early access to products, airdrops, exclusive invites to events and so much more.

John Haegele came up with a practical application for NFTs back in 2010, so you can only imagine what lies in store for us in the coming years. It has the ability to cause major waves in security and transparency that only the blockchain can provide. Utility NFTs have clearly outlined intrinsic value beyond their claimed scarcity. This is the next logical step in the NFT timeline.

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