What Are Utility NFTs?
Crypto Basics

What Are Utility NFTs?

1 year ago

A utility NFT is an NFT that, unlike regular NFTs, offers the holder direct and intrinsic value by granting access to specific privileges.

What Are Utility NFTs?


Non-fungible tokens (NFTs) are slowly evolving from digital pictures of primates to collectibles which grant users real utility.

Or are they?

If you haven’t heard, there’s a thing called utility NFTs. Yes, this is not a typo. NFTs with actual, real utility.

Utility NFTs can open up new possibilities, or so they say. That is why this article will explore the following:

  • What is a utility NFT?
  • What are use cases of utility NFTs?
  • What are examples of utility NFTs?
  • How to add utility to NFTs.
  • Real-world utility of NFTs.

What Is a Utility NFT?

A utility NFT is an NFT that, unlike regular NFTs, offers the buyer direct and intrinsic value by granting access to specific privileges. For example, a utility NFT can:

  • Grant access to exclusive items, characters, levels, skins, in a blockchain-based game.
  • Unlock premium content, communities, or rewards on a decentralized social network.
  • Offer educational resources, certificates, or incentives on a blockchain-based learning platform.
A utility NFT can also have intrinsic value based on its rarity, quality, or popularity. For example, a utility NFT would give its owner access to top seats at a concert as opposed to regular seats. Or a utility NFT that gives its owner access to a limited edition artwork or collectible may be more valuable than one that gives access to a common one.

Use Cases and Examples of Utility NFTs

Utility NFTs cast a surprisingly wide net when it comes to use cases. Some of the common use cases include:

Gaming Utility NFTs

With utility NFTs, gaming can be even more fun. They unlock access to exclusive game items that make the gameplay more rewarding. They can also be used to reward players for their achievements or participation in the game.

Examples of Gaming Utility NFTs

World of Freight

A play-to-earn racing game where players collect, trade and race NFT cars representing real-world freight vehicles. Each car is a unique NFT with different attributes and performance capabilities. Players can earn tokens by racing or delivering cargo, creating a new business model and revenue stream for developers and players.


A virtual world where users create, explore, and trade digital assets representing land, buildings, and artwork. Each asset is an NFT providing full ownership and control over virtual property. Users can interact with others and participate in events, making the gaming experience more immersive.

Fashion and Luxury Goods Utility NFTs

Utility NFTs leverage the creation and ownership of digital fashion and luxury items. Furthermore, they can verify the authenticity and provenance of physical items or grant access to exclusive events or experiences related to the brands or products.

Examples of Fashion and Luxury Goods Utility NFTs

RTFKT Studios

A digital fashion house creating and selling limited-edition digital sneakers and accessories. Each item is an NFT granting access to a 3D model usable across platforms and games. Some items also have real-life counterparts. This NFT category creates a new market and economy for digital fashion.


A luxury conglomerate owning brands like Louis Vuitton, Dior and Bulgari. Their blockchain platform, Aura, allows customers to verify product authenticity and provenance using NFTs. Each product NFT grants access to a certificate of authenticity and ownership history, enhancing customer trust and loyalty.

Sports Utility NFTs

Utility NFTs are a way of collecting digital sports memorabilia and fan engagement tools. They can also be used to access premium content, communities or rewards related to sports or athletes.

Examples of Sports Utility NFTs

NBA Top Shot

Fans can buy and sell video highlights of NBA games as NFTs, capturing iconic moments in basketball history. These NFTs create digital sports memorabilia, generating a new market and economy for the sports industry.


A fantasy football game where players collect, trade, and manage digital soccer player cards. Each card is an NFT representing a player's performance and statistics. Players can compete in tournaments and win prizes, enhancing the gaming experience and rewarding achievements.

Web3 Identification Utility NFTs

Utility NFTs are essential to the creation of digital identities or credentials for Web3 applications and services. They protect one's privacy, security or reputation and can unlock rewards related to the identity or credential.

Examples of Web3 Identification Utility NFTs

Unstoppable Domains

Users can create and own blockchain-based domain names that are censorship-resistant and compatible with various applications. Each domain NFT grants control over online identity and presence, with access to various Web3 applications and services, protecting privacy and security.


Users create and verify digital identities using blockchain technology. Identity NFTs grant access to services requiring identity verification, such as crypto wallets, bank accounts or voting booths, safeguarding privacy, security and reputation.

How To Add Utility to NFTs

Creating utility for NFTs is best done by offering value to existing holders and new buyers. Here are some tips and best practices on how to add utility to NFTs:

1. Make your NFT redeemable: One simple way to add utility to your NFT is to make it redeemable for a physical or digital good or service. For instance, you can create an NFT that can be redeemed for a physical artwork, a concert ticket or a merchandise item. This attracts buyers interested in both the NFT and the redeemable item
2. Connect your NFT to the real world: Connecting NFTs to real-world experiences or goods is a surefire way to increase their utility. For example, you can create an NFT that grants access to an exclusive event, a private community, or premium content. This attracts buyers looking for more than just a digital asset.
3. Make your NFT usable in the metaverse: NFTs that have various use cases in the metaverse also rise in utility. For example, you can create an NFT that can be used as a wearable item, a digital artwork or a game asset. This attracts buyers interested in enhancing their online presence and identity.

Real-World Utility NFTs

Real-world utility NFTs have a direct connection or impact on the physical world. These NFTs can be used to access, verify, or represent real-world goods, services or experiences. Here are some examples:

AMC Spiderman NFT: This utility NFT was given for free to moviegoers who pre-purchased tickets for Spiderman: No Way Home at AMC theaters. The NFT features a digital artwork of Spiderman and can be redeemed for a physical poster or digital download. It connects the digital and physical worlds by providing access to a real-world movie and a physical or digital collectible.
LVMH: A luxury conglomerate that owns brands like Louis Vuitton, Dior and Bulgari. The company launched a blockchain platform called Aura, which allows customers to verify the authenticity and provenance of their products using NFTs. Each product is an NFT that gives the buyer access to a certificate of authenticity and a history of ownership. This utility NFT verifies the authenticity of real-world luxury goods.
Civic: A platform allowing users to create and verify their digital identities using blockchain technology. Each identity is an NFT that grants the user access to various services requiring identity verification. For instance, an identity NFT can be used to access a crypto wallet, a bank account or a voting booth. This utility NFT provides a digital identity or credentials that can be used to access real-world services.
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