When people hear of NFTs, their minds are immediately drawn toward art, however, there are other forms of these digital pieces. In this article, we will provide an exposition of the different types of NFTs you can invest in.
Non-fungible tokens (NFTs) are a sort of digital asset that exists on a blockchain. These unique digital assets are frequently managed by smart contracts. This shows that each token is distinct and does not have a value that is shared by any other tokens.
Unlike other kinds of cryptocurrencies, these digital assets provide ownership authentication but cannot be transferred. They possess characteristics that cannot be duplicated or changed in any way. To know more about NFTs, read what to know about digital tokens and how to get or sell them.
In the paragraphs below, we will be looking at the top 10 different types of non-fungible tokens available for sale and investment in the market today.
Table of contents
Top 10 different types of NFTs
Some of the different types of NFTs available include:
- Gamified NFTs
- Music NFTs
- Event tickets
- Domains names
The vast majority of NFTs in use today are works of art. Digital images, GIFs, and short movies are examples of virtual artworks that are currently being sold online in the same way as tangible objects.
Distinct editions of the same piece may look aesthetically identical to one another during the minting phase of some NFTs, but they may have different edition numbers or token IDs.
While this is fantastic for broadening the audience for an artist’s work, other creators choose to go completely the other way and mint their work as a one-of-one NFT.
By choosing this course, the object can only ever belong to one individual at a time, thus increasing its market worth.
This approach makes the greatest sense for creators wishing to take advantage of the scarcity imposed by NFTs on digital commodities as demonstrated by artists like Beeple, XCopy, and Pak. 99% of all NFTs are programmable artworks. These NFTs are also the most expensive and can sometimes fetch millions of dollars.
The interest in and use of NFT by game developers has grown significantly. Players can possess in-game assets like skins, weapons, digital accessories, characters, and virtual land in the metaverse via NFT-driven play-to-earn (P2E) games, commonly referred to as “crypto games,” and trade these digital assets for money benefits.
Through immutable ownership records for in-game items, Non-Fungible Tokens contribute to the expansion of in-game economies. Axie Infinity, Gods Unchained, and Decentraland are a few of the most well-liked games. However, not all gamified NFT initiatives are play-to-earn games.
The sale of a limited edition version of DLC assets to players who wish to take advantage of the uniqueness of NFT assets is another application for NFT. However, this does not prevent the business from selling its standard DLC.
NFTs for photography is becoming more and more popular, and they are expected to keep expanding in 2022 as more seasoned photographers join the platform. Photographers can create NFTs from their collections of images and sell them.
To generate additional revenue when the images are resold, photographers might include royalty fees in their NFTs. Photographers like Julie Pacino, Justin Aversano, and J.N. Silva have so far found success working in the NFT industry.
We anticipate seeing more producers combine photography with other creative disciplines as this NFTs market continues to expand in order to explore the previously unexplored creative potential of the sector. The most expensive NFT picture was sold in 2022 for almost $2 million.
Companies can sell a variety of collectible objects, not simply trading cards, on the NFT market, contributing to the recent expansion of the sports trading card and memorabilia market.
Despite the well-documented rise and collapse of the project, collectibles are still a feasible format for NFT projects, particularly when they are associated with successful NFTs.
The sale of collectibles for thousands of dollars is nothing new, and NFTs are no exception. Cryptokitties, distinctive digital kittens that gained popularity among collectors in 2017, was the first NFT to be perceived as a collectible. It is also acknowledged as being the first application of NFT.
The research on converting music to NFTs resulted in the creation of another NFT subtype. An NFT for music is a tokenized representation of a musical work, such as a song, an entire album, or even a music video.
Now that real ownership claims can be granted to an individual, media files and music can be connected to NFTs. With the help of platforms like Sound.xyz, Royal, and OneOf’s CO/SIGN initiative, musicians may now make money while maintaining creative control thanks to NFTs and blockchain technology.
Owners can participate in the value of the release in some music NFTs. For instance, 3LAU’s Royal startup lets supporters finance an artist’s creations.
Artists have benefited from the transformation of music from a fungible item to a token in a number of ways. From having direct access to a new audience and devoted supporters to giving listeners a premium experience.
NFTs are well-liked by artists since they allow them to keep close to 100% of their earnings without worrying about the record label and streaming platform taking a share.
NFT use cases are expanding beyond digital art and avatar NFTs as the Web3 environment develops. Non-fungible tokens can also be used as event tickets, making it easier to confirm people’s identities and tickets.
For both live and virtual events, NFT ticketing enables users to use tokens as access passes. This is distinct from regular digital tickets because it gives issuers access to more detailed attendance data while also enabling them to send out announcements, hold surprise giveaways, and create fan-only websites and services.
A specific blockchain can be used by event planners to create a limited amount of NFT tickets for well-attended events like concerts and music festivals.
Coachella and other well-known events have entered the NFT ticketing market, opening the door for additional events to follow suit, including Las Vegas’ Afterparty and the Swedish music festival Way Out West. These tickets can be bought from auction postings and then kept for easy access in mobile devices’ wallets.
Scarcity is one of the key characteristics of non-fungible tokens. Each NFT is distinct and cannot be used in place of another token. The operation of identity NFTs is comparable to that of event ticket NFTs.
Non-fungible tokens are ideal for ownership-based access management, which is the theory that asset ownership comes with access to services, goods, or other advantages. They can act as distinctive identifiers, providing dependable assistance for identity management systems.
Certifications and licenses could be examples of identity-based NFTs’ typical applications. The identity management industry may change if certifications, licenses, and Non-fungible tokens are issued for the purpose of proving and authenticating an individual’s data.
Identity-based NFTs might also make sure that people could store proof of their identities without losing it.
Users are now able to buy and sell domain names thanks to the NFT market. Because well-known platforms like Ethereum Name Service and Unstoppable Domains have made it so simple for users to buy and administer domain names for their websites, wallets, NFTs, and other digital assets.
Domain name NFTs have played a significant role in the NFT ecosystem. By purchasing a domain name on the non-fungible token’s market, you can get around having to pay a third-party organization to handle it. You don’t need an intermediary because the name owner has exclusive rights.
These domain names function as tradeable NFTs on the blockchain, and some, like “beer.eth,” which Budweiser purchased, fetch high prices on the secondary market.
It’s not surprising that domain names have continued to gain popularity alongside the development of the NFT ecosystem given that the concept for Ethereum domain names dates back to 2015 when Linagee Name Registrar opened just a week after the Ethereum blockchain went online.
Sports memories can be provided as NFTs. On NFTs, you can mint trading cards, and sports kits including jerseys, clips, and souvenirs.
NBA Top Shot is an online store where customers may purchase NFTs of clips from significant NBA moments. OpenSea has an image of LeBron James dunk for sale. These videos, which can be as little as 10 seconds, fetch extremely high prices.
The marketing of memes as non-fungible tokens is the biggest development in the field of NFTs in recent years. Over the past ten years, memes have grown to play a significant role in social media entertainment.
The ability of original meme authors to engage in a developing future ecosystem is demonstrated by the sale of memes as NFTs. Some of the most well-known memes have been offered for sale as NFT at outrageous prices. For instance, Doge Dog’s original artwork sold for $3.9 million.