I've already talked about niche use cases that take full advantage of digital sharing and four utility projects I would back in a heartbeat. Still, I've always been a little skeptical about purchasing plain-old digital art files. Until now.

AR Technology Is Advancing At An Impressive Rate

The last time I interacted with AR technology was back in 2017 when I got a little too into Pokemon Go. While I enjoyed the game (and have recently gotten back into it), the AR at the time was pretty finicky and rarely worked for me.

Surprisingly My Tamagotchi Forever has a cute 'hide and seek' game that uses AR technology effectively.

Anyways, outside of Pokemon Go, I'd messed around with Instagram AR filters a little bit. And sat in on a demo for an AR-based wayfinding application built by some students at my technical college.

But that was it. I've always found the possibilities for AR tech exciting, but I'm sure as hell not going to develop it.

However, I'm beginning to realize just how much potential value augmented reality could add to NFTs for mainstream consumers, and I'm not the only one.

Now, there are a few different ways I could see AR technology improving the creation, trade and sale of utility NFTs.

Improving the Resell Value of Utility Tokens

The main issue with attaching physical objects like streetwear or a framed copy of the purchased artwork is that it complicates the trade process and could potentially reduce the item's value when retrading.

It's unclear whether the physical objects attached to an NFT are included every time that item is traded. You're buying an NFT but are you always entitled to the real-world things that originally came with the purchase?

And if you do want to trade physical items that came with NFTs you've invested in, you then have to decide;

• If the shipping costs are built into the price, the NFT was purchased for.
• How you can preserve the anonymity of the new owner of your old NFT.
• Whether or not a used hoodie in someone else's size makes the purchase more or less valuable.

Getting physical merchandise with your NFTs is fantastic for a first-time buyer. But, unfortunately, for any subsequent buyer down the line, it's messy and complicated, and there's no guarantee that the physical items included will be in mint condition.

NFT Wearables

Last year, DRESS X made waves on TikTok by being one of the first brands to offer digital clothing. Sure, digital clothing meant photoshopping outfits onto influencers; HOWEVER, it proved without a doubt that the interest in digital wearables is there.

Several companies have begun implementing 'try me' tech to help online shoppers test out which glasses look best for their face shape, try on clothing using a 'virtual dressing room' and visualize furniture in their space before purchasing.

By simply implementing and modifying the existing technology, NFT creators could improve the resale value of their utility tokens by ensuring they are 'wearable' instead of a static image like DRESS X or many of the other 'NFT clothing' items that are currently available in the marketplace.

A unique AR filter for a pair of glasses you can take pictures with is far more versatile, and fun than a static image or a 3D model of some designer handbag and the technology already exists!

Virtual Pets

Does anyone remember Nintendogs? I played a lot of Nintendogs when I was a kid; honestly, it was a blast!

Many mobile games centred around self-care allow you to play with magical kitties and water-thirsty plants because people enjoy taking care of things. Even Pokemon Go understands this principle. The only things you can do with your Pokemon buddies are feed them treats and pet them. But it's cute, and that makes it fun!

If an NFT creator took the time to create cute virtual pets, you could 'interact with' in even the most basic way (petting, feeding, naming, buying a hat etc.)—they could carve out a massive market in the same space as Crypto Kitties or Eggz by Soakverse but with a substantial competitive advantage.

NFT creators have been trying to create 'metaverse worlds' with static images and trading cards for years with varying interest levels. But a simple AR filter could make the whole thing feel real.

The value of a trading card pet would increase exponentially if you could take pictures 'with' your NFT buddies or mix and match other fashion items you've bought from the same creator.

Immersive Artwork

I saw an ad from EyeJack yesterday that sent me down a large AR fuelled rabbit hole. Mostly because of their 'AR Artbook' Prosthetic Reality V.2. The artwork is incredible to see in action, and I desperately want my own copy. 

However, what I find most interesting about AR artwork is that it could potentially separate NFT owners from people who screenshot and print out versions of NFTs they don't own.

There's something very different about seeing a mural or a piece of artwork than seeing it reimagined as a living, breathing thing. For example, I attended an exhibition of the 'Immersive Van Gogh experience,' which was amazing!

I don't even really like Van Gogh. But being able to stand inside a piece of art and see it moving around you is incredible and difficult to describe.

If NFT owners had access to their own AR experience, even a small one that couldn't be accessed without ownership, the recreation and distribution of NFT artwork as stills would be a cheap knock-off and not a genuine danger to artists trying to make a living.

Final Thoughts

AR experiences are already something the general public is enamoured with and could potentially draw in fresh blood to a space that is primarily early adopters, rich celebrities and tech nerds.

It's also a fantastic opportunity to reimagine what NFTs could be and build on the primarily hypothetical idea of a 'metaverse' in a way that is exciting and usable for more than just clout.

The tools to create walkable galleries or 'play' with NFT pets are mostly here. And the future of NFT collectibles is bright.