What are Types of NFTs: A Full List of All NFTs
Non-fungible tokens (NFTs) are a unique mix of tokens and currencies. They function like coins but possess more security benefits, like encryption. Their use is quickly expanding, and a major benefit is their ability to store and transfer data. The tokens can be used to represent the ownership of anything from physical goods to digital items.
Just as tokens differ in their function, they also differ in their appearance. Each has a specific design, and that design, along with the feature set, influences the value of the token. There are different types of non-fungible tokens, and we want to give you a basic overview of the most common ones.
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In 2020, virtual fashion entered the media field and became incredibly popular. Clothing that didn’t exist became the topic of bidding and boasting and took up space on the NFT market.
Fashion-NFT is a concept that includes clothing, shoes, jewelry, accessories, and much more – everything that can be worn in virtual reality. These digital clothes are now being used not just as speculative tools and collectors, but also to customize avatars in GameFi, in virtual reality, and to superimpose on actual items while photographing and filming.
In the world of augmented reality, there is a Wear-to-Earn business model (“Wear for the sake of earning”)that will become extremely popular, and designers, manufacturers, and merchants will all start creating virtual garments for placing on the shelves of online stores.
Top fashion brands that embrace the Metaverse include Gucci, Louis Vuitton, Nike, Burberry, Givenchy, JW Anderson, Tommy Hilfiger, Dolce and Gabbana, Dior, and many more.
NFT artworks include a wide range of different digital art styles. Whether these are self-created images, elaborate videos, or copies of well-known collector’s goods, the term “art” is in the beholder’s mind, just as it is with actual works of art.
Because the ownership of such an art NFT can be totally proven by Smart Contracts and its authenticity is certified, there are usually only minimal editions of their digital form, making them very valuable.
NFT artists, on the other hand, do not always have to be actual professionals; an increasing number of people with little creative skill are creating NFT art using different softwares. Despite their simple structure, these NFTs are sometimes so popular that their prices reach tens of thousands of euros.
Examples include fantasy art, digital painting, digital drawings, 3D works, virtual reality, and augmented reality.
If you are interested in creating NFT art, check these articles as well, which can be a great help to you:
- How to Make NFT Art in Just a Couple of Minutes?
- How to Sell a Photo as NFT: The Process and Promotion Explained
- Do You Need to Keep Paying the Gas Price After Uploading NFT Art?
- A Step-by-step Tutorial for Beginners to Launch Your First NFT Collection
- On What Basis is the Price of the NFT Decided?
- How to Promote and Grow an NFT Project and Collections?
Traditional collectors are always on the search for valuable collectibles. Cryptocats is an excellent example of digital collectibles, and NFTs originally appeared with the development of Cryptocats.
Your digital collectible is yours to have and keep. It may be shown on a variety of websites and platforms and lasts forever. For now, each collectible may be regarded as an event memento that can be exchanged on NFT marketplaces like OpenSea.
Without a question, the NFT category is now the most talked about. What is the reason behind this? Because this type of NFT generates exorbitant transaction volumes, both on a total scale and on a unit scale.
NFT collectibles come in a variety of shapes and sizes, the most common of which are collections of digital drawings of characters or things created at random using programming. The collection’s specificities are made up of these creations with random features, making them more or less rare.
NFT Video Games
Video games associated with NFTs (like Age of Gods, Lucky Blocks) receive less attention than collectibles. However, it is an important category with enormous potential and a promising future as NFT gaming is building new wealth opportunities.
In this section, we’ll make a distinction between NFTs that are related to video games:
- Play-to-earn video games,
- items for video games
The NFT's Items of Video Games
Any work or “digital item” that may be used in a video game comes here under the NFT classification.
These types of products have been around in the gaming world for a long time, whether they’re skins or weapons that you earn or buy in the game.
The difference is once again due to the NFT’s technology. Indeed, thanks to contracts, item producers may make a specific thing one-of-a-kind, and each item will only have one owner. All of this is included in the NFT contract.
Previously, anybody could get a rare skin or weapon by farming them (for example, by completing a quest) or buying them on the game store, with an unlimited number of owners.
Play-to-earn Video Games
It is the symbol, or at least one of the major symbols, of web 3.0: the “intelligent” web, the web of value.
Essentially, it’s about playing a video game and earning money, specifically in the form of bitcoin. The literal meaning of play-to-earn is “to play to win” (money).
You must first create an account on the chosen online game’s platform. Then, for example, get a character, a team, or something else, usually by depositing the beginning money. We may then begin playing due to this character or team purchase (which are, of course, NFTs). And completing tasks might be part of the game.
The amount gained in a day, a week, or a month, may then be estimated, often in dollars, based on the value of the token in issue or its direct conversion into another cryptocurrency.
Axie Infinity, a strategy fighting game with small imaginary creatures in three-person teams, is one of the most well-known and widely played play-to-earn games.
You’ve probably seen memes if you use the internet, particularly social media platforms, on a regular basis. For a long time, small pictures or videos that largely show ideas or behavior in a humorous way were not a viable source of cash. However, with the introduction of blockchain (check a list of recourses to learn more about blockchain) and NFTs, there have been an increasing number of memes among the most valuable and costly NFT ecosystem.
If a meme becomes popular, its author may quickly “register” it on the blockchain and sell the original. It’s possible to make a lot of money if you have a good mood and have humor.
While most people associate NFTs with digital photos, an increasing number of musicians are releasing their works as NFTs and selling them for a high price. Music NFTs are blockchain-based cryptographic tokens that may represent both digital and physical assets. These can be resold as well as downloaded in the form of music files. This allows musicians to get paid directly for every sale made on the secondary market without the need for intermediaries like managers or record labels to share the profits.
Other NFT Types
In addition to art and music NFTs, the market for non-fungible tokens continues to grow. There are always new areas of application in which NFTs can be useful and, above all, very profitable.
The ever-growing Metaverse also holds many possibilities in the future, but in some cases already at the present time, to use NFTs in many forms.
Have you lost your favorite organic supermarket’s loyalty card so far? In the future, reward NFTs may be able to fix this problem. Because Reward NFTs have a significant benefit: they can be immediately stored on the blockchain and are impossible to lose if they are connected to your wallet.
The idea behind Reward NFTs is simple: when you make a purchase with a retailer, they want to reward you for your brand loyalty. Using blockchain and smart contracts, he or she can then send you tokens for each purchase, which you can then redeem for discounts or special customer benefits.
While you earn points with little effort, the retailer also benefits from Reward NFTs because Reward NFTs have lower administrative and monetary operating costs than customer cards or paper flyers. Costs caused as a result of system errors or fraud can also be greatly reduced for the retailer.
NFT Real Estate
Purchasing real estate is typically a long and slow process that can take months and cost a significant amount of money.
And here is where blockchain technology, together with smart contracts and non-fungible tokens, may prove to be useful in the future, especially with new terms in the industry like soulbound tokens, proof of humanity and DeSoc.
You can already buy a physical property as an NFT in a few cases, and it will become your entire ownership – without a lot of paperwork. Only physical real estate shares are available for purchase. The blockchain makes the buying process easier, allowing buyers to purchase a new home in minutes. A smart contract that seals the deal proves that you own certain property.
NFT Event Tickets
NFT tickets may be used for much more than just entry to a show. On the one hand, they’re fun and innovative method for the event industry to promote and sell tickets. The collector aspect, on the other hand, comes into play here. Because a paid NFT does not disappear, even when the event is over. If NFT tickets had been available during Michael Jackson’s time, a digital ticket for his final show would have been worth a small fortune by now.
NFT tickets’ collector’s value can thus rise over time, potentially allowing ticket holders to benefit financially from their future event participation. Because any NFT owner can resell it at any time and as needed.
Furthermore, NFT tickets can be used as a lifetime ticket to a certain event or conference, for example. Bonus programs are also possible as NFTs in the course of tickets. Visitors attending an annual trade show, for example, may be entitled to a discounted or free fifth NFT ticket.
Another option would be to sell an exclusive and limited number of NFT tickets, which would allow buyers to a meet and greet with the artist or access to a VIP lounge. After the event, event organizers can provide NFT ticket buyers with films or images of the event as NFT, which can only be purchased by NFT ticket buyers. They’re fun to play with because of their limitations, exclusivity, and playful aspects.
The NFT domain is a one-of-a-kind domain represented by a single Non-Fungible Token (NFT) that combines two crucial concepts: crypto wallet addresses that also serve as website domains.
Domain names have long been considered some of the most expensive online real estate:
- In 1999, R. H. Donnelly bought Business.com for $7.5 million and sold it for $345 million eight years later.
- In 2005, LasVegas.com was sold to a Las Vegas vacation business for $90 million.
- In 2019, Block.one, the inventors of the EOS cryptocurrency, purchased Voice.com for $ 30 million.
- In 2018, Crypto.com was bought for an estimated $12 million by Monaco (MCO), a crypto visa startup.
If these numbers seem high, keep in mind that these companies didn’t “buy” the domain, but rather “rented” the rights to it from the domain registry (more on that later). Tokenization of domains became unavoidable as soon as technology allowed you to effectively “own” something digital.
To better understand how domain NFT works, it’s helpful to understand some of the foundations of NFT. A non-fungible token is a token that corresponds to one unique asset, such as an image of a Cool Cat, home ownership, or, in this case, a domain.
- .com,.org, and.gov are examples of Web 2 domains.
- .crypto,.x,.nft, and.zil are Web-3 domains based on NFT.
Domain NFTs (sometimes referred to as decentralized domains, crypto domains, or blockchain domains) provide a number of distinct benefits over standard domains. In contrast to standard Web-2 domain business models based on an annual renewal charge, domain NFTs are often one-time purchases.
NFT domains are also 100% user-owned, which means that a centralized company like GoDaddy or Google Domains cannot control or remove your domain at their discretion. What makes domain NFTs so interesting is that they can also be used as cryptocurrency public addresses, allowing the domain to accept and send payments in other compatible with different cryptocurrencies and tokens.
In conclusion, NFTs (Non-Fungible Tokens) have major potential in the gaming, collectibles, and crypto markets and could be the next big thing in terms of tokenization. NFTs use blockchain technology to represent real-world assets that are based on digital goods.