In the previous article, the first part of the use cases of NFTs was discussed. You can read the article using the link below:
https://news.edaface.com/2026/07/03/why-nfts-are-in-hot-demand-the-use-cases/
Here’s the continuation:
1) Asset Tokenization
Beyond entertainment and the metaverse, one of the most transformative applications of NFTs is asset tokenization.
Asset tokenization refers to the process of issuing blockchain tokens that represent tangible or intangible real-world assets.
These assets may include commodities such as cotton, oil and gas, precious metals, artwork, music, physical and digital collectibles, residential and commercial real estate, vehicles, and corporate equity.
Other tokenizable assets include financial instruments, treasury bonds, certificates, intellectual property rights, patents, licences, gift cards, sports franchises, athletes, celebrity brands, and data.
In principle, almost any asset can be represented as an NFT and marketed to create additional sources of value and income.
Three Assets from One Input
Consider the example of constructing a house.
The physical house itself constitutes a tangible asset.
An architect may then create a three-dimensional digital representation of that house, thereby producing a digital asset.
Finally, this digital representation can be tokenized on a blockchain and transformed into an NFT, creating a blockchain asset.
The NFT may then be marketed to family members, tenants, investors, friends, colleagues, or the public.
Thus, one physical asset can generate three distinct categories of assets:
(i) Physical Asset
The actual house that has been constructed.
(ii) Digital Asset
The three-dimensional digital representation created by the architect.
(iii) Blockchain Asset
The digital representation that has been tokenized and transformed into an NFT.
In other words, a single physical asset can generate additional digital and blockchain assets, each possessing independent market value.
Asset tokenization is one of the fastest-growing applications of NFT technology and offers significant economic opportunities.
2) Ownership Fractionalization
Although NFTs are inherently non-divisible, multiple individuals can collectively own an NFT through fractional ownership arrangements.
Under this model, profits generated from the NFT are distributed among owners according to their respective ownership shares.
The primary benefit of ownership fractionalization is that it allows investors with limited capital to gain exposure to assets that would otherwise be inaccessible.
For example, NFT tokenization enables retail investors to participate in markets involving expensive assets such as hospitals, stadiums, and large commercial real estate developments.
3) Trading
Because NFTs are blockchain-based assets, they can be traded for profit similarly to other digital assets.
Some NFT creators go further by issuing fungible tokens that represent or support their NFT ecosystems. These tokens can acquire financial value and be traded independently.
For example, EdaFace NFTs minted on the Ethereum blockchain can be bought and sold using EDA or Ether.
Likewise, EdaFace NFTs minted on the Binance blockchain can be traded using EDA or BNB.
As demand for these NFTs increases, the value of their associated tokens may also appreciate. Therefore, individuals who do not wish to acquire NFTs directly may still participate by trading their associated cryptocurrencies.
In the next article, the last two (2) use cases of NFTs will be discussed.
Till then, keep minting your NFTs!
To start Minting today, visit: https://nft.edaface.com
