NFTs Beyond Art: Tickets, Memberships, and Real Utility
While NFT art collections grabbed headlines, the real innovation is using NFTs for functional purposes: event tickets, membership passes, credentials, and more.
TLDR
- NFTs can represent ownership of digital or real-world assets
- Common utility: Event tickets, membership passes, identity credentials, gaming items
- Benefits: No counterfeiting, resale royalties, programmable features
- Real examples: Coachella tickets, POAP badges, ENS names, in-game assets
- Future use cases: Real estate, supply chain, certificates, loyalty programs
By William S. · Published June 14, 2024
NFTs Are More Than JPEGs
Most people think of NFTs as digital art collections (like CryptoPunks or Bored Apes). While those exist, NFTs are really just a way to represent unique ownership on a blockchain. That ownership can apply to anything: tickets, memberships, credentials, gaming items, and more.
The key advantage: NFTs are non-fungible (unique) and programmable. Unlike fungible tokens like ETH or USDC, each NFT is distinct and can have custom smart contract logic attached.
Event Tickets
NFT tickets solve real problems: counterfeiting, scalping, and secondary market control.
How It Works
Event organizers mint NFT tickets on a blockchain. Each ticket is a unique NFT tied to a specific seat, date, or access level. When you buy a ticket, you receive the NFT in your wallet. At the event, you scan a QR code linked to the NFT to prove ownership.
Real Examples
- Coachella: Sold NFT passes that unlock festival perks and could be resold on secondary markets
- NBA Top Shot: While focused on collectibles, the model works for game tickets too
- Various music venues: Testing NFT tickets for concerts and festivals
Benefits
- No counterfeiting: Each ticket is verifiable on the blockchain
- Automatic royalties: Organizers can earn a percentage of resales (programmed into the NFT contract)
- Identity verification: Can link tickets to specific wallets or require KYC
- Anti-scalping controls: Limit resale prices or require approval
Membership Passes
NFTs can act as membership cards for clubs, communities, or exclusive access.
How It Works
Organizations mint membership NFTs. Holders prove membership by connecting their wallet. The NFT can unlock perks, voting rights, or exclusive content.
Real Examples
- Bored Ape Yacht Club: NFTs grant access to exclusive events, merch, and community spaces
- Various DAOs: Governance tokens or membership NFTs grant voting rights
- Subscription services: NFT passes unlock content or services for a period
Benefits
- Transferable: Members can sell or transfer memberships
- Transparent: Membership status is public and verifiable
- Programmable: Can expire, have tiers, or grant different levels of access
Identity and Credentials
NFTs can represent verified credentials: diplomas, certifications, achievements, or attendance proof.
POAPs (Proof of Attendance Protocol)
POAPs are NFTs that prove you attended an event, met someone, or completed an action. They're free to mint and serve as digital badges.
Example: Attend a conference, receive a POAP. It's proof you were there and can unlock perks or networking opportunities.
Other Credentials
- Educational certificates: Universities testing NFT diplomas (MIT, for example)
- Professional licenses: Verify credentials without third-party databases
- Achievement badges: Gaming achievements, course completions, skill certifications
Benefits
- Tamper-proof: Can't fake credentials stored on blockchain
- Portable: Carry credentials across platforms
- Verifiable: Anyone can check authenticity without contacting the issuer
Gaming Assets
NFTs represent in-game items: weapons, skins, characters, land, or currency. Players truly own these items and can trade them outside the game.
How It Works
Game developers mint NFTs for in-game items. When players earn or buy items, they receive NFTs. These NFTs can be used in-game or traded on marketplaces.
Real Examples
- Axie Infinity: NFTs represent creatures, items, and land
- Decentraland/The Sandbox: Virtual land NFTs
- Various play-to-earn games: NFTs as tradable game assets
Benefits
- True ownership: Items exist even if the game shuts down
- Interoperability: In theory, items could work across multiple games (still experimental)
- Player economy: Players can earn by trading items
Domain Names (ENS)
Ethereum Name Service (ENS) uses NFTs to represent domain names like "vitalik.eth". When you register a name, you get an NFT.
Benefits: You own the domain (can transfer or sell), it's decentralized, and it works across dApps. Similar to traditional domains but on-chain and programmable.
Future Use Cases
NFTs are still early. Potential applications include:
Real Estate
Property ownership represented as NFTs. Could enable fractional ownership, easier transfers, and transparent ownership records.
Supply Chain
Track products through supply chains. Each product gets an NFT that records its journey from manufacturer to consumer.
Loyalty Programs
NFT loyalty cards that accumulate points, unlock perks, and can be traded or combined.
Certificates and Licenses
Professional licenses, insurance policies, or legal documents as NFTs for easy verification.
Technical Considerations
For utility NFTs to work well, consider:
Storage
NFT metadata (images, descriptions) can be stored on-chain or off-chain. On-chain is permanent but expensive. Off-chain (IPFS, Arweave) is cheaper but requires pinning. For important credentials, prefer permanent storage.
Gas Costs
Minting NFTs on Ethereum mainnet can cost $20-$100+ during congestion. Consider using Layer 2 solutions or alternative blockchains for lower costs.
Privacy
NFTs are public by default. If credentials need privacy, consider private chains or zero-knowledge proofs (still experimental).
Real-World Example: NFT Concert Ticket
Scenario: You buy an NFT ticket for a concert.
- Concert organizer mints 5,000 NFT tickets on Polygon (cheap fees)
- You buy ticket for $50, receive NFT in your wallet
- Ticket NFT includes: seat number, date, perks (VIP access), and resale rules
- Day of concert: You scan QR code linked to your NFT wallet
- If you can't attend: You can resell on OpenSea. Organizer earns 5% royalty automatically
Benefits: No fake tickets, organizer gets resale royalties, you can verify authenticity yourself.
How to Get Started
- Set up a wallet: MetaMask or similar (see our wallet guide)
- Buy some ETH: On Ethereum mainnet or L2 depending on where NFTs are minted
- Connect to platform: OpenSea, POAP, or event organizer's site
- Mint or purchase: Follow platform instructions
What to Watch For
- Storage permanence: Check where metadata is stored (IPFS pinned? On-chain? Centralized server?)
- Contract verification: Verify the NFT contract on Etherscan (see our guide)
- Platform risk: If using a centralized platform, understand what happens if it shuts down
- Gas costs: Consider L2s or alternative chains for lower fees
Frequently Asked Questions
Can NFTs be used for real-world items?
Yes, but NFTs only prove ownership on-chain. For physical items, you still need real-world verification. An NFT can represent a car title, but you need the physical car and legal transfer. NFTs are useful for proving authenticity and ownership, but they don't replace traditional legal frameworks entirely.
What happens if the platform hosting NFT images shuts down?
If images are stored on centralized servers, they can disappear. If stored on IPFS (and pinned), they're more permanent. If stored fully on-chain, they're permanent but expensive. Always check where metadata is stored before minting important NFTs.
Can I revoke or cancel an NFT?
Depends on the contract. Some NFTs are revocable by the issuer (useful for credentials that can expire or be revoked). Most art NFTs are non-revocable (you own them permanently). Check the contract code to see if there's a revoke function.
Are NFT tickets better than traditional tickets?
For event organizers, yes: They can prevent counterfeiting and earn resale royalties. For users, it depends: You need a crypto wallet, and gas fees can add costs. However, you can resell easily and verify authenticity. Traditional tickets work fine for simple use cases; NFTs add benefits for organizers managing large events or wanting resale control.
Can I use the same wallet for all my NFTs?
Yes. Your Ethereum wallet (MetaMask, etc.) can hold NFTs from any EVM-compatible chain. You can have art NFTs, tickets, POAPs, and gaming items all in one wallet. Just make sure you're on the right network when viewing or transferring.
Do utility NFTs have value if the project fails?
Depends on the utility. If an NFT is just a membership pass for a failed project, it has little value. However, if the NFT represents something valuable (like a credential that other systems recognize), it may retain value. Always consider: What does this NFT actually do, and does that function exist independently of the issuer?