The NFT craze that peaked in 2021 still continues this year. The hype has gone so far that celebrities around the world are getting paid in NFTs, launching their own NFTs and making their own NFT collections.
On the other hand, some find it quite difficult to understand. To explain in simple words, NFTs are information stored on the blockchain and can not be replicated. NFTs represent ownership of unique items.
Contrary to popular perception, there are different kinds of NFTs and not just non-physical artwork. Let’s understand them one by one:
Collectibles
The first NFTs to be ever launched are the collectibles. They can be understood as bodily collectibles but in digital type. The first NFT collectibles to be launched were Curio Cards, after which followed popular collectibles like Bored Ape Yacht Club, CryptoPunks, Meebits and many more.
Artworks
Artworks are basically digital artworks that render a public certificate of authenticity and possession, which is issued by the blockchain on which they’re saved. ‘The First 5000 Days’ by Beeple is the costliest digital artwork NFT which was sold for a massive $69.3 million in Christie’s public sale in March 2021.
Video-Game Assets
These are video games based on NFT in which players participate in order to win rewards such as cryptocurrency, different NFTs and digital belongings. Axie Infinity was the very first NFT video-game asset, after which video games like Gods Unchained, Sorare, and many others became very popular amongst online gamers.
Sports Memorabilia
Sports Memorabilia is among the hottest NFT classes. NBA Top Shot is the most well-known NFT of this phase. One of the most interesting things about this NFT is that it features a video clip of memorable sports activities moments. The LeBron James Dunk, Throwdowns (Series) is one of the most well-known NFTs in this class. It is a clip of LeBron James, a Lakers participant, ducking the ball. It is one of the costliest Sports Memorabilia NFTS ever, offered for more than $380,000.
Memes
Over the years, the meme craze has only increased. However, till a few years back, people couldn’t imagine that memes would have a monetary value attached to them. Amidst the NFT wave, memes are transferred into a profit-making digital asset. In June of 2021, the authentic Doge meme was offered for $4 million. Memes such as Luck Brian, Success Kid, NyanCat and many others are offered to make the meme market beneficial and meme creators rich. The meme of catastrophe lady offered for more than $470,000.
Virtual Land
In addition to the Metaverse, this includes land in video games. It may seem like a redundant asset with no-real world use, however, it has a lot of potential. There are various use cases of this digital piece of land: it can be used for creating digital belongings, putting commercials inside video games and much more.
Music
Music is rather a new phenomenon in the NFT space. It works in such a way that Artists, before releasing their albums on traditional streaming platforms, pre-release them on NFT marketplaces while consumers also have the option to buy an element of the album, just like how shares work. Then, when the album is launched through conventional means, the consumers will have a share in the income of the album.
Ticketing
It is widely known how NFTs have revolutionized day-to-day transactions, and ticketing is also no exception. Even ticketing can be minted on blockchain platforms, and organizers can even auction it off. NFT tickets can be offered at a fast and hard value.
NFT Fashion
Something like the Virtual trend, too, was difficult to fathom; however, today it has an actual and important market capitalization. Virtual trends include different clothes and accessories made for online game characters and digital avatars. Famous brands Burberry and Louis Vuitton have introduced a line of NFT trends together with sneakers and kimonos for digital avatars.
Identity
With the assurance of transparency from blockchain and their non-fungibility, NFTs have started attracting significant real-world traction. Offering identification certificates to people is one of the real-world functions of NFTs. Bridge Protocols and Self-Sovereign Identity are some examples of real-world NFT use, especially person identification.
Domain Names
As the name suggests, these are crypto domains minted on a blockchain, for example, Ethereum or Binance Smart Chain. There are more than 500 area extensions, and ‘.eth’ is the most sought after. Crypto Domains are a coveted asset since they do not depend on any centralized authority. One unique feature of these kinds of NFTs is that they can also be utilized for hyperlinking crypto wallets, a function not found in non-NFT domains.
The biggest drawback of Cryptodomains is the fact that a majority of browsers don’t support them as of now.
Real-World Assets
There is one more misconception that NFTs are only related to digital and digital belongings, but that’s not true, they also have actual world belongings. A Real World asset NFT (rwANFt) is a token that symbolizes digital possession of a bodily object. A rwANFT token, just like digital NFTs, authorizes insurance coverage, enforceability, authorized contracts of guarantee and much more.
Miscellaneous Online Items
This class literally contains miscellaneous online items such as blogs, tweets, Instagram posts and many others. One example of such an NFT is Jack Dorsey’s first tweet. It was offered for $2.9 million.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/04/11/13-different-types-of-nfts-explained-in-detail/