Been thinking: how to explain the value of NFTs to those that have only seen "line goes up".

The best analogue for the utility is that NFTs are like tickets or like software licenses, except more powerful. You buy an NFT and then anyone can give you on chain or off chain permissions.

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helping others build with LLMs and ML | YC S22, CMU CS + LTI | I write technical posts for ML builders at http://dbmikus.com

Why is an NFT better than buying a ticket on Ticketmaster?

Say I buy a ticket and then can't go to the show. I want to sell my ticket online. If I sell a normal digital ticket, the buyer has no guarantee that I didn't just go to the show anyways after selling it to them and they are left with a dud.

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What about software licenses? For either recurring or one time licenses, an NFT is the same as a normal license except I can transfer it to a friend.

In the case of video game battle passes, NFTs can represent the same thing and also be memorabilia about the pass's season.

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Why are NFTs better than traditional means?

1. Anyone can attach on chain capabilities to the NFT: the ability to sell on Opensea, token gated access to other mints, etc.

2. One can attach off chain capabilities to an NFT. You have a Photoshop NFT license, so I'll give you a discount on my photo editing class.

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Ticket scalping can be solved by a variety of means such as soul bound tokens, requiring ID proof, etc.

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