60% of enthusiasts haven’t heard of Utility NFT; they splash money on worthless jpegs

Temitope Akintade
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New research has shown that a lot of work needs to be done in the NFT sector. According to an NFT behaviour report released last week by DappRadar, many NFT enthusiasts still do not know anything about ‘Utility NFT.’

A Utility NFT is a digital collectible, useful for more than trading, collecting, or earning a profit. Recently, these Utility NFTs have been touted as the future of digital assets.

Recall that a boom in the digital art space in 2021 and early 2022 saw mouthwatering sales of digital art with little or no value/utility. Since the downturn of floor prices and trading volumes last year, there have been efforts to sensitize the community on how NFT technology can be utilised to solve real-life problems rather than simply recirculating money on worthless jpegs of apes. 

However, the new report by DappRadar shows that the industry still has a long way to go regarding utility NFTs. 

More on the report

According to the DappRadar report released last Wednesday, 60% of NFT consumers haven’t heard of Utility NFTs, 13% had only heard “something about it”, and 6% had purchased one or more Utility NFTs. Only 10% had purchased Utility NFT and used it for more than trading.

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The research additionally says the most important benefit of owning an NFT for respondents was making profits or increasing their savings, which accounts for 31%. 22% of respondents purchased NFT because of Asset Ownership, while 13% said the most important benefit was NFT ticketing. 

Interestingly, the last option has the highest representation from new NFT users, according to the DappRadar report. This shows that the ticketing use case is helping NFTs become mainstream, especially among enthusiasts. 

NFT ticketing

Since NFT ticketing is gaining momentum and could become one of the mechanisms to extend the frontiers of Utility NFT, it is important to discuss what it entails. 

Simply put, NFT tickets signify ownership of a certain experience or event, such as an entrance to a theme park, a sporting event, or a concert. They can be used to enter the event and prove its ownership and credibility. It can ensure that the ticket is valid and cannot be counterfeited because they are unchangeable and impossible to reproduce. 

Speakers discuss Utility NFT at Technext Coinference 2.0
Speakers discuss Utility NFT at Technext Coinference 2.0

Below is a scenario of how it could work. 

A concert or music festival can use NFTs to issue and manage tickets for the event. Each ticket would have a unique NFT that the event organizer would create and store on a blockchain. Each NFT would include details of the event, the ticket holder’s name and their assigned seat. The digital tokens would be sold at a marketplace where customers can pay with crypto or fiat. 

The ticket holder would show the NFT to enter the event once it starts. The NFT can quickly be checked to ensure the ticket is genuine by scanning a QR code or via the blockchain.

Related post:

“NFTs are more than art” | Experts discuss NFT trading at Technext Spaces session

The adoption of blockchain technology enables transparency and traceability, making it simpler to trace the ownership and origin of the ticket. 

Although it is still a new idea and is not yet widely used in the ticketing industry, it can gain popularity as a means of managing and representing event tickets in the future. 

Lastly

As the industry continues to grow, evolve and mature in 2023, consumers need to understand the full potential of these unique digital assets. It has been said that a key to helping consumers understand the benefits of NFTs is to showcase the utility before even using the term. 

Regions like Africa, projected to lead the blockchain revolution, is a perfect place where the industry can build credibility and trust with a broader audience by educating enthusiasts about use cases and life-changing NFT utilities. 


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