With the introduction of blockchain technology, the ability to create unique digital assets known as NFTs (non-fungible tokens) has exploded. These tokens can be used in various ways, from representing ownership of rare digital items to being used in online games.
In this article, we’ll look at different types of NFT projects and how they are used to create new and exciting user experiences.
What is a non-fungible token (NFT)?
Let’s start by describing what an NFT is.
A non-fungible token is a piece of data stored on a blockchain (when NFT minting process is done) that can’t be copied but may be sold or traded.
» Learn more: What is an NFT?
The list of 13 NFT types you need to know
With so many NFTs out there, it’s crucial to know how to differ projects. The following section will describe 13 primary NFT project classifications and how they differ.
Artwork (Art NFTs)
Just like with physical art, art can be sold digitally. NFT technology helps artists sell their work and buyers to ensure they receive a unique piece of art that cannot be replicated.
For example, Tyler Hobbs is a digital artist whose work focuses on the mechanisms of the digital world. His latest project, Fidenza, is an NFT-based artwork that uses the Ethereum blockchain to track ownership and provenance. The Fidenza project highlights the potential of NFTs to create new ways of thinking about art, ownership, and value.
As the NFT space continues to evolve, projects such as this will help to push the boundaries of what is possible.
Profile picture (PFP NFTs)
PFP, or “profile picture”, is a smart and easy way to add a personalized touch to your social media profile. PFP NFTs are digital assets you can upload as your profile picture, often used on Twitter. People who view your profile will see the NFT you use and own.
PFP NFTs are a great way to show off your personality and make your social media profile stand out from the crowd. You can choose from various PFP NFTs or create your own.
For example, CryptoPunks was one of the first popular NFT projects where users changed their profile pictures to one of the 10,000 unique punk characters.
Utility NFTs
Utility NFTs are becoming an increasingly popular way to invest in digital assets. Unlike traditional NFTs, which are often simply collectibles with no inherent value, these NFTs represent a more practical use of blockchain technology.
Utility NFT tokens are assets that have a value based on the access, privileges, and possibilities they provide to token holders. For example, Utility NFTs can represent ownership of digital real estate or provide access to exclusive content or services.
As the NFT market grows, we will likely see more and more innovative uses for this technology.
Metaverse NFTs
Metaverse NFTs are digital assets that can be used in metaverse projects. Metaverse NFTs can be anything created inside or for the project, such as land in The Sandbox or Decentraland.
You may use these NFTs to represent ownership of things in the virtual world, or you can use them to demonstrate real-world assets. The potential of metaverse NFTs is enormous.
Collectibles NFTs
Collectible NFTs are similar to items you buy in the real world, and any collectible elements may be digitized and offered as an NFT.
The collectible NFT market is still in its early stages, but there are already many platforms where you can buy these NFTs. The most popular Collectible NFT platforms include OpenSea, Rarible, and Dibbs.
These platforms enable you to trade Collectible NFTs, which are just like other digital assets. The values of these collectibles change every day.
Gaming NFTs
Gaming non-fungible tokens are a new type of blockchain-based asset that can be used in P2E (player-to-earn) games. Players can use NFTs to represent their characters, vehicles, or other in-game assets in these games.
Gaming NFTs are stored on the blockchain, which allows them to be transparently traded and exchanged. This makes it possible for players to buy, sell, or trade their NFTs without a central authority.
NFT games also have the potential to radically change how we think about in-game assets. For example, they could allow players to own their game characters and progress rather than renting them from a game publisher.
» Learn more: NFT games guide for beginners
Photography (Photo NFTs)
Photography has always been a popular art form, and with the rise of digital technologies, it has become easier than ever to take and share photos.
With the advent of blockchain technology, there is a new way to use photos. Photography NFTs are digital assets that allow you to tokenize a photograph. Whoever owns this token owns this specific picture.
This means that you can now trade, sell, or exchange your photos in a completely new way. Here are some success stories of photographers in the NFT space.
Music NFTs
Music has always been a source of both entertainment and investment. In recent years, a new way to invest in music has emerged in the form of Music NFTs.
Music NFTs are digital certificates that state that you own a one-of-a-kind musical composition. These compositions can be sold to other people, just as with any other piece of art.
These NFTs are a great way to invest in music because they are backed by the Blockchain, ensuring they are truly unique and cannot be duplicated.
Music NFTs are also excellent for musicians to sell their work directly to customers without relying on promoters and record labels.
Fashion NFTs
Fashion is one of the most popular industries in the world, and fashion NFTs are a new way of expressing style and individuality. Fashion NFTs are digital files that can be used to create unique fashion items, such as clothing, shoes, or accessories.
Unlike traditional fashion items, which are mass-produced and often identical, Fashion NFTs are limited edition and can be customized to suit the individual. In addition, Fashion NFTs can be traded and sold like any other digital asset, making them a valuable investment for collectors. As the popularity of Fashion NFTs grows, we can expect to see more designers and businesses embracing this new technology.
Physical assets NFTs
Physical assets converted to NFT are known as “real assets” or “physical assets” NFT. These can include land, buildings, and even works of art.
The benefits of creating physical asset NFTs are numerous. For one, it allows owners to transfer ownership of their assets more easily and securely. It also opens up new opportunities for investment and financing. Additionally, it provides a way to track and manage asset value over time. Ultimately, physical asset NFTs offer a more efficient and transparent way to manage and trade real-world assets.
Tickets (NFT ticketing)
As the world of digital collectibles grows, it’s no surprise that tickets are getting in on the action. Several platforms now offer the ability to trade tickets as non-fungible tokens (NFTs), which opens up a whole new world of possibilities for fans and event planners.
For fans, it means being able to buy, sell, or trade tickets for their favorite events and potentially even make a profit on resales. And for event planners, it opens up new ways to engage with fans and incentivize ticket sales.
With so many possibilities, there will certainly be some exciting new developments in the world of live entertainment. Here is an example of event tickets sold as NFT for VeeCon.
Services NFTs
A service NFT is a non-fungible token representing a service provided on a blockchain network. For example, Ethereum domain names are sold as NFTs. If you want to register a domain name, the domain registration service is sold to you using blockchain technology and stored as an NFT.
The benefits of using NFTs for services include increased security, transparency, and immutability. In addition, NFTs can be easily traded or transferred, providing flexibility for users.
Overall, service NFTs provide a unique and convenient way to store and trade services on the blockchain.
Software NFTs
You’ve heard of non-fungible tokens (NFTs) before, but did you know your program or app may be sold as an NFT? That’s correct – just like art, music, and other digital items, your software or app could be tokenized and sold as an NFT.
While the process may seem complicated, it’s actually quite simple. In fact, many companies are already experimenting with selling software as an NFT. The benefits of this approach are that it could help to protect intellectual property and ensure that creators are fairly compensated for their work. Here is an example of NFT software that I use.
» Learn more: How to buy your first NFT
FAQs
Let’s look at the most common question people ask about NFTs.
What is the most popular type of NFT?
The most popular type of NFT is digital art. Digital art is a flexible and emotive form of expression that may produce a wide range of creations. NFTs can also be transferred and sold like any other digital asset, making it simple for artists to monetize their work.
NFTs offer a unique way for artists to sell their work, bypassing traditional galleries and middlemen.
What are some successful NFT projects?
Statistics show that new NFT projects are launched daily, but a few historical instances helped establish the industry. Some historical examples will leave you gasping: Beeple’s record-breaking $69 million NFT sale and Tim Berners-Lee (“Father of the Internet”), selling 9,555 lines of original code for $5.4 million.
Conclusion
Now we have succeeded in sharing a comprehensive list of all types of NFTs available on the digital market. Hopefully, this article has helped you to understand what is out there and grasp which type of NFT might be right for you.
As always, if you have any questions or want to learn more about a particular type of NFT, don’t hesitate to reach out!
» Relevant read: Different types of cryptocurrencies