To date, the crypto world has felt a little insular. There weren’t too many places where crypto reached into the “real world” in substantive ways. 2022 saw the first real estate transaction in the US recorded on a blockchain. This involved minting a non-fungible token (NFT), the buyer paying in Ether and the transaction being recorded, via a smart contract, on the Ethereum blockchain.
It doesn’t get more “real world” than accepting bitcoin as legal tender, which is exactly what El Salvador did in September 2021. While it hasn’t exactly been an unmitigated success so far for El Salvador, 2023 will be a pivotal time as the country attempts to raise $1 billion in “bitcoin bonds.” The success or failure of this bond offering could have significant ramifications for future, large scale, “real world” experiments like this.
So, whether it’s real estate transactions, cross border payments, creating new royalty streams for artists, identity management, or insurance, expect there to be more ways for you to interact with crypto and blockchain technology in your everyday life.
This question of crypto’s use cases in the “real world” is essentially a question of utility. What can crypto be used for? Increasingly utility NFTs are answering that question. Many of the uses to date for NFTs have been to allow people to buy and sell interests in digital artwork. Think Bored Ape.
Utility NFTs take this concept and add an element of usefulness. That could be access to special events, special content, or other rewards. Concert and event tickets can be issued using utility NFTs, thereby eliminating the risk of loss, preventing fakes, and facilitating or limiting resale. Every non-fungible item in the “real world,” whether it’s real estate, a concert ticket, a coupon, or a gym membership card, could be captured in a utility token. Expect to see more of the “real world” getting tokenized in 2023.
