Non-fungible tokens are unique digital assets that cannot be replicated, and this unique capability means they offer a ton of real world value. The utility of NFTs is only just starting to be explored, expanding from their original use case which saw them serve as a record of ownership for digital art.
Creators have had a lot of fun trying to expand the concept of NFTs, and one of the most interesting that has gained traction is NFTs as in-game assets. In video games, NFTs can be playable characters, weapons, skins, power-ups and even land in metaverse games such as Decentraland or The Sandbox. Thanks to the use of NFT-based in-game assets, it becomes possible for some players to “play-to-earn” and win prizes for their gameplay that can be exchanged for real money. Players can also sell their assets, such as a player NFT, if they no longer wish to play the game, meaning they can recoup their investment in a specific game.
Another promising use case for NFTs is verifying identity. NFTs can serve as a digital identity in the Web3 space, enabling users to access DeFi services and more without having to undergo KYC repeatedly.
Elsewhere, there are projects exploring how NFTs can be used to represent fractional ownership of real estate. For instance, Metatime is creating MetaRealEstate, a platform that will make it possible to tokenize real-world apartments and buildings. People can then invest in these NFTs to become part-owner of that real-world property and earn a share of the rental income it generates.
Location-based NFTs
This ability to link NFTs to the real world is the inspiration of Lost Worlds, which has hit upon the concept of the GeoNFT, a special kind of NFT that can only be minted by traveling to a specific, physical location.
The possibilities for GeoNFTs are virtually endless, limited really only by the imagination of their creators. Given that NFT creators tend to be a highly imaginative bunch of people, that means we can expect to see a number of innovative use cases emerging out of this concept.
For instance, the most obvious application of GeoNFTs is to bridge the real world with the metaverse, essentially enhancing the experience of visiting a real-world location by enabling people to access digital content when they visit it. A good example of this might be Peer, which is building an augmented reality metaverse later this year. Peer’s AR metaverse will be overlaid atop of the real world, and enable users to drop NFTs at specific locations for others to find.
GeoNFTs can be used to create virtual world-like experiences that are tied to specific locations. For example, a business in Paris might create an NFT and make it mintable at the Eiffel Tower, meaning users have to visit that location to get their hands on the NFT and the benefits it provides. Alternatively, businesses could create a kind of scavenger hunt, asking customers to collect a series of 10 NFTs, with the first to get them all winning some exciting real-world prizes.
Other use cases include AR-based games, where people are tasked with visiting real-world locations to complete certain missions or fight bosses and other players. Moreover, GeoNFTs might provide possibilities for creating communities and clubs around shared, real-world experiences.
GeoNFTs In The Real World
Lost Worlds has done a lot of work to enable GeoNFTs, creating anti-spoofing technology that prevents people from faking their presence at a real-world location. This technology, along with the Lost Worlds web application, was tested for the first time at the 2022 Avalanche Summit in Barcelona. There, the project created a Pokemon Go-style experience alongside 35 NFT projects in the Avalanche ecosystem, enabling visitors at the event to explore the city and hunt for unique GeoNFTs that provided access to exclusive experiences at the event.
Following that project, Lost Worlds unveiled its “Continent” video NFT experience, in which a very limited collection of just five GeoNFTs was spread around the world, one in each continent. Users who collected all five of the NFTs could then mint a special “Earth NFT” and soulbound badge, leading to intense competition from NFT enthusiasts.
Its most recent experience took place at NFT.NYC in April 2023, where Lost Worlds created the LOST.NYC experience, scattering multiple NFTs across New York City for people to collect in order to access special events and memorabilia. During the event, it also partnered with the popular Web3 fitness app STEPN to create a number of NFTs that could be minted in designated areas of Central Park, encouraging fans to jog around the area and collect them all.
With its GeoNFTs, Lost Worlds has hit upon a very promising concept and it will be interesting to see if the idea catches on. One of the challenges for Lost World is that, like all NFT projects, it will need a way to reduce the friction involved in minting and purchasing NFTs. Lost Worlds has made a good start with this, allowing users to pay with Apple Pay, Google Pay and credit cards via its app to pay for the NFTs they discover.
GeoNFTs are an intriguing evolution of the NFT space, and as the concept catches on we can expect to see no end of creative use cases emerging.