The interest in understanding the different NFT (non-fungible token) types has been growing recently. The reason is that the unique digital assets with the foundation of blockchain technology have become so popular. NFTs are one of the notable topics these days. Different types of NFTs are available in various categories.
Different types of NFts
The continuous development and growing scope of innovation in the NFT field expand the application of this technology in more sectors of the economy. Therefore, it is reasonable to expect the emergence of new types of NFTs in the future. Currently, the most popular NFT arts can be placed into at least one of the following categories.
1. Collectible items
Unlike physical collectibles that are slow to transport and expensive to maintain, NFTs have no limitations due to their digital nature. They transfer in seconds and never drop in quality.
One of the most well-known types of NFTs around the world is the ownership of digital artworks on the blockchain. Traditional art markets take a significant share of the final sale of the work, have limited accessibility, and require high fees to list. Contrary, NFTs do not need to be listed in global online markets or any intermediary. It is also possible to create a stream of continuous income for artists by allocating some revenue from secondary sales as royalties.
3. Music and multimedia content
The field of music and multimedia content can also benefit from NFTs. This type of NFT offers music and multimedia files, and people can prove their valid ownership of multimedia files. This is the new version of selling music on records, CDs, and cassettes.
The most common NFTs in gaming are in-game items. Game developers can provide access to the ownership records of in-game items and strengthen the growth of in-game economic ecosystems. Today, thousands of items are sold to players as unique NFTs with real value.
5. Event tickets
Another common usage of NFTs is using them as tickets to various events. This type of NFT uses to confirm identity and tickets for attending events such as music concerts, theatres, etc.
6. Domain name
Tokenized domain names have gained significant popularity recently. Maintaining ownership of blockchain-based domains does not require regular renewal. You can create this type of NFT once and keep them forever. NFT Domains are new web extensions (like .com or .info).
Memes as a community based around blockchain art and internet culture have been linked to NFTs and become a part of our popular culture, despite their popularity among internet users.
Some of the more popular memes are Nyan Cat, Bad Luck Brian, and Disaster Girl.
8. Memorable sports moments
Short video clips of historical sports moments from groundbreaking slam dunks or game-changing touchdowns are one type of NFT. For example, these NFTs can be as short as 10 seconds of an NBA top shot.
The magic of Metaverse
Think about the physical world, the things, and the people around you. Now imagine the digital version of this world. It is the simplest definition of the Metaverse. An environment where users engage in social and economic transactions with each other through their 3D avatars. To better understand the importance of NFTs in the Metaverse, consider this example:
In the Metaverse, you can walk through a virtual mall and buy a digital outfit from your favourite store for your avatar to wear. Then you can go to the restaurant to choose something to eat.
Your selected products will be delivered to your home by courier in the real world. You can even attend a live concert in the physical world. When you leave the concert halfway through to meet up with your friends, you can still participate through your 3D avatar and be hands-free.
Such interactions require the actual transfers of resources and values (data, purchases, etc.) between the real and virtual worlds. NFTs are the key that can bridge the physical world with the Metaverse by bringing real value and ownership to the virtual world. NFTs allow us to enter a new world while maintaining the economic rules of the current world.
More types of Metaverse NFTs
Metaverse is a virtual world, just like our current physical world, whose virtual economy is driven and powered by NFTs. Players use Metaverse NFTs to purchase virtual land and digital tools. A tool their metaverse ecosystem may need to thrive.
The NFTs integrated into the Metaverse act as proof of identity for users with specific items in this virtual world. These NFTs provide them with a unique code registered in the blockchain network. The receipt code makes them the exclusive owner of an item/property.
Several different types of NFTs available in Metaverse are here for you.
1. Land and real estate
Play-to-earn games have implemented the metaverse concept through land or real estate in their models. In popular monetization games like Oxy-Infinity and Decentraland. Users may need to purchase NFT lands to expand their virtual ecosystem or create new products and features in their lands. Land and real estate are among the most popular Metaverse NFTs. In December, a user paid $450,000 for a plot of land next to Snoop Dog’s house in Metaverse.
2. Fashion and clothing
The fashion and apparel industry is the newest member of the growing metaverse ecosystem.
The industry’s NFTs have been created by prominent brands such as Gucci and Louis Vuitton. These prominent brands offer limited edition fashion and clothing items to users on Metaverse. Users can now operate in the Metaverse fashion and clothing industry by purchasing NFTs. These types of NFTs are simple, just like digital peripherals. Players’ digital avatars wear them to differentiate themselves from the crowd.
3. Gaming NFTs
While this has become highly controversial among traditional gamers, monetization games in the Metaverse have begun and moved on to accept NFTs. Some gaming NFTs are available in RPG games, card games, and shooting games.
NFT weapons may aid players in gameplay. Other types of NFTs are called shells. These skins are applied to weapons to differentiate players’ identities.
How to buy Metaverse NFTs
Users can buy popular NFTs from a legal market such as “OpenC” or “Raible”. Users can also access these types of NFTs from the in-app stores of monetized games. To buy an NFT Metaverse, you must follow the following steps:
- Select the market where you want to buy your Metaverse NFTs.
- If you buy NFT with Ethereum, be sure you have enough Ethereum in your wallet. You can also buy Metaverse NFTs through Metaverse tokens such as AXS or SAND.
- In the market of your choice, browse the Metaverse A section to find the NFT of your choice.
- Connect your wallet to the market. Some NFTs require issuers to register an offer for their product. Submit your bid and wait for confirmation.
- Upon successful bidding, you will receive a confirmation that makes the NFT yours.
The most successful active NFT projects
Crypto - kitties
Crypto Kitties is a blockchain-based game on the Ethereum network developed by Dapper Labs. Crypto Kitties allows players to purchase virtual cats, collect collections, process them, and sell them at the end.
Crypto Kitties uses a system called Genetic Algorithm (GA) to create new cats. The genetic algorithm is similar to the actual genetic inheritance function in humans. This algorithm transfer features such as background, stripes, skin patterns, and facial expressions to the kittens. This algorithm generates the features of each new kitten using the features of its two parent cats.
The first cat of this game was created in December 2017. By November 2018, the production of generation zero cats was completed. After that, generation zero cats reproduce and produce new cats. The characteristics of each new cat are determined based on its parents as random as mutations. This process leads to the creation of fancy and valuable cats.
Decentraland is a virtual world managed by its users. Every piece of land and every other item in this virtual land is a non-fungible token (NFT).
So far, statistics show that Oxy Infinity has been one of the most successful NFT projects. This project sold more than 2.4 billion dollars until October 13, 2021. Other non-traditional tokens are collectibles that are valued based on rarity alone. However, the Oxy Infinity game offers “OXYs” to its users. They can also be used to earn coins in an immersive game.
CryptoPunks is one of the oldest NFT projects. Larva Labs launched this series in June 2017. A collection of 10,000 unique characters designed in 8-bit style. In April 2021, 9 CryptoPunks in a collection were auctioned and sold for $16.9 million.
Most people had never even heard the word NFT in 2020. However, NFTs became a stock market in 2021. Different NFTs spread across the internet like wildfire in a few months. It will be interesting to see if 2023 will give rise to other types of NFTs that have not been seen so far.