How is NFT used in real life?

Could you elaborate on how NFTs are utilized in practical, everyday scenarios? I'm particularly interested in understanding the various applications and benefits they offer in different fields. Do individuals use them primarily as collectibles or investments? Are there any innovative use cases that are starting to emerge? I'm also curious to know about the challenges and limitations that may be associated with adopting NFTs in real-world settings. Could you provide some examples or anecdotes to illustrate these points? Thank you for sharing your insights!