10 Types of NFTs Everyone needs to know about
It is safe to assume that anything could be an NFT, and this is not far from the case.
With more interesting NFT use cases being discovered day in and day out, researching so many various sorts of NFTs might be confusing.
However, because we are still in the early phases of the non-fungible era, it may be some time before we see large-scale projects that aren’t tied to art in some way or form.
Different Types of NFTs
Here are some popular types of NFTs with examples
1. Profile Pictures (PFPs) and Avatars
In 2021, generative avatar projects soared in popularity, and their relevance has only grown as the NFT ecosystem has evolved.
At the core of it, PFP NFTs are digital tokens or artwork intended for use as a person’s social media profile photo. PFPs are used in several of the world’s most popular NFT collections. For e.g.
DeGods, or Okay Bears on the Solana Blockchain.
Without a doubt, when most internet users outside the NFT world think of NFTs, they think of this format.
2. 1-of-1 Artwork
Conventional and graphic artists that enter the NFT space rely on 1-of-1 pieces. Going this route means only one person may own the piece at any given time, inherently giving it more value on the open market.
These 1-of-1 artworks may be paintings (digital or physical), cartoons, 3D animations, sceneries, videos, or any other kind of digital media.
“Beeple (real name is Mike Winkelman)” You must’ve heard the name of this American artist who recently sold his NFT entitled Everydays: the First 5000 Days, for the eye-watering sum of $69.9 million!
3. Generative art
The name doesn't get any simpler than this, It is exactly what it sounds like.
Art that a computer has generated in some way. While most artworks are generated by a generative algorithm or artificial intelligence (AI), some are created by actual robots as well.
By now, you are probably familiar with the concept of collectibles — prized possessions sought after by collectors.
Crypto collectibles are unique items minted on blockchain as non-fungible tokens for anyone to acquire.
An example of Collectibles NFT is — NBA Top Shot, NFL All Day, UFC Strike
NBA Top Shot NFT collection is a project where basketball fans can grab some unique collectibles to celebrate their passion for the game. The collection offers collectibles known as ‘NBA Moments’ in the form of NFTs.
The NBA Moments are a collection of NBA highlight clips, which you can use as trading cards. One of the interesting aspects of NBA Top Shot is the recreation of the tangible experience of collecting game souvenirs.
5. Gamified NFTs
Have you ever spent several days grinding in a video game to obtain a specific in-game item, weapon, or achievement? Imagine being able to the item with you to different games or universes, or selling it for fiat currency.
6. Music NFTs
Most individuals are well-aware of the music industry’s failure to give musicians sustainable options for making money. While streaming services take up the majority of the revenue, musicians suffer. This is where musical NFTs come into play.
Artists can now earn money while still maintaining creative control. Some music NFTs also allow owners to share the release’s value. For example, Fans can invest in an artist’s work through 3LAU’s Royal venture.
7. Metaverse Land
As the metaverse becomes a reality, many collectors are buying virtual real estate on metaverse platforms. Like other NFTs, each land is tied to the blockchain and is unique, just like a piece of land in the real world.
Examples of Metaverse Land NFTs:
Collectors are looking to develop their own space to call home in the metaverse, monetize their land, rent it out, build on it for others looking for a metaverse home, or eventually sell it.
8. Events and Ticketing
As the Web3 ecosystem grows, NFT use cases are evolving beyond digital art and avatar NFTs. These can act as passes to events, including access to backstage events, digital collectibles, and more.
9. Domain Names
While Web2 is built around centralization, Web3 is based on ownership transparency and decentralization. There are NFTs that allow you to truly own your Web3 presence and brand.
Example of Domain Names is ENS (Ethereum Name Service)
Owning an ENS gives your Ethereum wallet address a unique name ending in .eth. This makes it much simpler to receive Ethereum than typing out your public alphanumeric wallet address.
10. Membership Passes
NFT-based memberships are their own separate sector of the NFT ecosystem, has grown and expanded in parallel with PFPs to provide incentives to holders.
These unique programs make use of NFTs as entry keys to open a variety of services and rewards, including virtual and real-world experiences.
NFT memberships are often enforced by “token-gating,” which utilizes blockchain technologies to confirm ownership of the NFT and provide holders access to whatever member-exclusive benefits are available.
The NFTs ecosystem is growing exponentially, and new utility use cases will emerge in a variety of industries.
Innovators, specialists, and organizations have a unique opportunity to choose the paths they will take to offer more valuable utilities to NFTs. However, the entire ecosystem, including holders, will be the ones to judge and pick which NFTs to buy and hold over time.
Upcoming utility NFTs trends are likely to feature more innovative utilities as well as a combination of different types of utilities.
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