Exploring The Different Types Of NFTs: Art, Music, And More
Digital artworks led the charge in 2020 when non-fungible tokens first blew up. Since then, they’re pretty much what comes up whenever NFTs are discussed. However, there is more to the industry. You’ve probably heard or read a bunch of times about the “endless potential” for NFTs. If you’ve ever wondered what exactly that is, today is your lucky day. Here are 9 types of non-fungible tokens you definitely want to know about. Enjoy!
Art NFTs
Many non-fungible tokens fall into this category which involves representing an artwork on the blockchain. Art NFTs use blockchain technology to verify the authenticity and ownership of the piece. This way creators can bring exclusivity to their digital works, they can monetize them, and earn even more revenue in secondary sales. Collectors on the other hand get the bragging rights that come with owning a verifiably unique piece of art. A good example of an Art NFT is the widely popular Everydays: The First 5000 Days, by artist Mike Winklemann aka Beeple. It was one of the first Art NFTs to hit the market and remains of the most expensive NFTs ever sold.
Music NFTs
Just like digital artists can put their art on the blockchain as NFTs, musicians can make NFTs of their music. It could be a single song or music video or even a body of work like an EP or album. NFTs give artists control and ownership of their music, unlike streaming platforms and labels which provide only a small profit share. With NFTs, artists can generate revenue beyond traditional sales and streaming. NFTs also foster community and allow fans to better support their favorite musicians while also getting to own limited edition copies of their work.
In 2021, rock band Kings of Leon launched an NFT album on marketplace Yellowheart that earned over $2 million in sales. In addition to the exclusive album package, buyers got AV art, and front-row seats to live shows.
Game NFTs
If you’re into games, you’re going to love this.
NFTs have introduced a new form of digital ownership and commerce within gaming ecosystems. Game NFTs are in-game items such as weapons, armor, skins, and avatars that are represented on the blockchain. Because they exist as non-fungible tokens, as a player you get to have full ownership over assets you acquire in games. This also means the ability to trade with other players or sell them for real-world value. Some popular projects featuring gaming NFTs include Axie Infinity and The Sandbox.
PFPs
Chances are you’ve run into a handful of these. PFPs that is, profile picture NFTs are tokens users can display on various online platforms, such as social media, gaming, or marketplaces. They usually feature unique characters or designs and have dominated the NFT space in recent years. They double as valuable investments and a way for users to express their status or identity. They are popular with traders, celebrities, and collectors. Some well-known projects in the PFP market include Bored Ape Yacht and CryptoPunks.
Collectibles
People collect various things; coins, toys, and comic books. With NFT collectibles, it’s only a matter of tokenizing items that are considered valuable. A good example of an NFT collectible is Jack Dorsey’s first tweet which he made into an NFT that sold for $2.9M. Other things that have been made into NFT collectibles include GIFs, memes, and iconic sports moments as is the case with NBA Top Shot, a platform where fans can buy, sell and trade basketball video clips.
Access/Membership NFTs
NFTs are a super cool, super secure way to regulate access to a wide range of things, exclusive content, services, experiences, and even physical goods. They work like event tickets, memberships, or subscriptions. Access NFTs take advantage of the uniqueness of non-fungible tokens and the security of the blockchain to provide authentic access and also create an unforgettable user experience.
Real Estate NFTs
Real estate NFTs represent ownership of a specific piece of real estate, such as a house, apartment or land plot. Information about the property alongside its owner is recorded on the blockchain making it easy to verify ownership and transfer. Real estate NFTs can also be fractionalized, which means that ownership can be divided into smaller portions, allowing investors to buy and sell shares of the property.
Fashion NFTs
Gucci, Louis Vuitton, Dolce & Gabbana - these are some key players in the fashion industry who have embraced this class of NFTs. Their offerings are majorly digital fashion items such as virtual clothing, and accessories. A lot of the time fashion NFTs are designed for use on digital avatars but they can come with physical counterparts.
One example of this trend is footwear brand Nike’s collaboration with RTFKT, a digital fashion company. The two companies joined forces to create "Cryptokicks," a metaverse sneaker line that combines physical sneakers with unique digital tokens that represent ownership of the sneakers in the virtual world.
Identity NFTs
Identity NFTs are a less popular type of NFT. The idea behind them is that they are designed to bear verifiable information about their holders, including their qualifications and personal engagements. Ethereum co-founder Vitalik Buterin proposed the concept of non-transferable Soulbound tokens (SBTs) as the foundation of the decentralized Web3 future. SBTs are like an extended resume, containing personal data like individual achievements and work credentials. Unlike standard NFTs, SBTs can't be transferred and are bound to the individual. It's an interesting concept that could change the way we store and present personal data in the future.
Final Thoughts
It’s common knowledge that the Web3 and broader digital environment are constantly evolving. This of course extends to non-fungible tokens as well. So, while the list above gives you a good grasp on where the industry is at NFT applications, you can be sure there’s more to explore.
