Understanding the Different Types of NFTs (2022)

Non-fungible tokens or NFTs are one of the notable topics garnering attention in 2021. The unique digital assets based on the foundation of blockchain technology have become quite popular in recent times. As a result, the interest in understanding the different NFT types has been growing in recent times.

People are interested in the promising economic potential associated with NFTs apart from a vision for transforming conventional asset management. The gradual growth visible in the domain of non-fungible tokens can ensure prolific opportunities for NFT creators and investors. Therefore, a clear impression of the different types of non-fungible tokens could help in making better decisions in your NFT journey.

Aspiring to Become a Certified NFT Expert? Enroll in Certified NFT Professional (CNFTP) Course Now!

The Radical Rise of NFTs

Digital tokens are not something new in the world of technology. As a matter of fact, NFTs started to gain attention of the world only after the digital artist Beeple auctioned off his artwork at a Christie’s auction in March 2021. Popular names such as Twitter chief Jack Dorsey and Elon Musk have also expressed their opinions in favor of NFTs.

It is interesting that the first NFT was minted in 2014, and only six years later, the NFT market cap is almost $2 billion, only in the first quarter of 2021.

(Video) The 13 Types of NFTs

In 2020, the total value of sales amounted to almost $250 million. NFTs are just digital or cryptographic tokens you can find on a blockchain with the ability to maintain uniqueness. NFTs could be tokenized variants of real-world assets or completely native digital assets.

Must Read: Why 2021 Is The Year Of Non-Fungible Tokens (NFTs)?

Common Categories of NFTs

However, the association of NFTs with art is one of the prominent factors which can confuse many beginners in NFT. As a matter of fact, NFTs are not restricted only to the domain of art. You can discover different types of NFTs with unique traits and distinctive use cases.

The foremost classification of NFT types refers to the general categories. The three common types of NFTs include,

  • Original or copy of work, documented on a blockchain network or DLT
  • Digitally native NFTs, which have ownership rights to the work constituting the NFTs
  • NFT metadata, which involves the NFT providing representation of ownership for metadata files related to the internet

The common types of non fungible tokens offer a broad description of the criteria used in classification of NFTs. In the case of original NFTs, they are created on a blockchain network, and the NFTs remain on the blockchain network. Digitally native NFTs are the assets that involve issuing NFTs to multiple persons with ownership rights of the asset. The NFT metadata is another important pointer for classification of non fungible tokens as it basically involves a link to the metadata for the NFT. As a result, you don’t get ownership of the NFT and just the rights for using it.

Curious to know about the future applications of NFTs? Check out our guide on Future Applications And Challenges Of NFT right now!

What Are The Different Types of NFTs?

The different speculations regarding the potential of NFTs and the value and risks associated with them have become quite significant topics of discussion. Non fungible tokens are capable of displaying the true provenance of an asset with the functionalities of blockchain. NFTs could help in holding, limiting, or denying access to rights of an individual on their assets, thereby ensuring exclusivity.

(Video) The different types of NFTs in 2 mins

The developing infrastructure and growing scope for innovation in the domain of NFTs can foster their applications in diverse sectors. Therefore, it is reasonable to expect the emergence of new types of NFTs. As of now, you can take a look at some of notable NFT types which are popular in present times.

The prominent entries in a non fungible tokens list would include the following,

  • Collectibles
  • Artwork
  • Event tickets
  • Music and media
  • Gaming
  • Virtual items
  • Real-world assets
  • Identity
  • Memes
  • Domain names

Enroll Now: NFT Fundamentals Course

Let us take an overview of these different non fungible token or NFT variants to understand their significance.

  • Collectibles

The foremost example of NFTs emerged with the development of Cryptokitties, which are online collectibles. As a matter of fact, Cryptokitties are the first instance of people using NFTs. Interestingly, Cryptokitties became so popular in 2017 that they congested the Ethereum network. Cryptokitties are one of the striking additions to non fungible tokens list in the category of digital collectibles. They are basically digital kittens with distinct traits that make them popular and favorable than others.

  • Artwork

Artwork is also another prominent candidate for NFTs. The common types of non-fungible tokens in this domain refer to programmable art, which features the unique concoction of creativity and technology. Currently, there are many limited edition artwork pieces in circulation with the scope for programmability under certain conditions. The use of oracles and smart contracts could help artists in creating images which are represented on blockchain networks. Digital art NFTs have also encouraged possibilities of participation from the legacy arts industry.

The tokenization of real-world assets and artwork could help in encouraging the adoption of NFTs. The possibilities of combining blockchain and IoT together could offer interesting prospects for scanning a code or sticker on assets. The NFT types in artwork could ensure that users could easily register ownership of real-world artwork on a blockchain network. Subsequently, users could also find out the complete history of an artwork, such as previous ownerships and the prices for which they were sold in the past.

Wondering about what the tokenization is and what its different types are? Read on this article to know about the types of tokenization in detail.

(Video) TOP 10 Types of NFTs: The COMPLETE LIST!! 💯

  • Event Tickets

Another promising addition among the types of NFTs would refer to event tickets. Such types of NFTs allow people attending events such as music festivals and concerts to verify their identity and tickets. Event managers could mint a specific number of NFT tickets on a selected blockchain platform. Customers could purchase the tickets through an auction and store them in their wallets with easy accessibility through mobile devices.

  • Music and Media

The domain of music and media is also trying out experiments with NFTs, thereby leading to another category of NFTs. It is possible to link music and media files to NFTs, thereby enabling an individual with true ownership claim to access the files. The two prominent platforms which help artists in minting their songs as NFTs include Rarible and Mintbase.

While artists get the advantages of reaching out directly to their followers and new audience, the listeners get a premium experience. The sense of exclusivity in purchasing NFT music is one of the foremost reasons for infusing traits of vintage vinyl records. The growth of music NFTs in the non fungible tokens list could offer reliable prospects for addressing the concerns of music piracy and intermediaries.

Here’s a detailed guide to know Everything About the NFT Marketplace

  • Gaming

The common types of non fungible tokens in the domain of gaming are primarily focused on in-game items. NFTs have evoked profound levels of interest among game developers. They can offer the functionality of ownership records for in-game items, thereby driving the growth of in-game economies. Most important of all, NFTs in the gaming sector also focuses on introducing a wide array of benefits for players.

While in-game collectibles were common requirements for a better experience of the games, NFTs have the potential for changing their value. In-game items as NFTs could easily help in recovering money by selling it outside the game. On the other hand, game developers or the creators issuing NFTs could earn a royalty for every sale of items in open marketplace.

  • Real-world Assets

Even though you cannot find many NFT types serving as tokens for real-world items, the progress in NFT domain can make that happen. For example, many NFT projects are presently focusing on the tokenization of real estate alongside luxury goods. NFTs are basically deeds, and they can introduce the flexibility for purchasing a car or home with an NFT deed. Therefore, NFTs representing real-world assets can capitalize on the opportunities with cryptographic proof of ownership.

Learn Non-Fungible Token Concepts with the NFT flashcards!

(Video) NFT Explained In 5 Minutes | What Is NFT? - Non Fungible Token | NFT Crypto Explained | Simplilearn

  • Identity

One of the crucial traits of non fungible tokens is scarcity. Every NFT is unique and cannot be interchanged with any other token. In the case of identity NFTs, the working is similar to that of event tickets NFTs. They can serve as unique identifiers, thereby serving as reliable support for identity management systems.

The common applications of identity-based NFTs could be evident in certifications and licensing. Minting certifications and licenses and NFTs for proving and verifying records of an individual could change the identity management sector. In addition, identity-based NFTs could also ensure that individuals could store evidence of their identity without risks of losing it.

  • Memes

The most significant advancement in the domain of NFTs in recent times is the sale of memes as NFTs. While being a part of popular culture and an instant favorite among internet users, memes have also been associated with NFTs. The sale of memes as NFTs showcases the potential for unique meme creators to participate in an evolving futuristic ecosystem.

  • Domain Names

The answer to ‘what are the different types of NFTs?’ would also refer to domain names, which have become popular recently. Decentralized Domain Name Services such as Unstoppable Domains and the Ethereum Name Service (ENS) are the top examples of domain name NFTs. ENS can help in translating long and complex user addresses to a flexible and friendly experience for users with easier onboarding.

Become a member now to watch our on-demand webinar on Demystifying Non-Fungible Tokens (NFTs).

Final Words

The existing entries in the non fungible tokens list clearly depict the potential of the NFT ecosystem. As a completely new category of digital or tokenized assets, NFTs are changing the conventional notions of asset usage and ownership. Therefore, you can find the common types of non fungible tokens focusing on what you actually get with an NFT. First of all, you can have an original NFT created and stored on the blockchain.

The second type of NFTs refers to digital natives in which multiple NFTs serve as parts of ownership rights to specific assets. The third category of NFTs only offers access to NFT metadata, thereby allowing you to use the NFT rather than allocating ownership. The different types of NFTs in circulation today, such as artwork, music, and media, domain names, memes, also show promising prospects for the future of NFTs.

To know more about the non-fungible tokens, enroll now in our NFT Fundamentals Course!

(Video) NFTs, Explained

The article is written by our NFTs subject matter expert as per our latest webinar on Demystifying Non-Fungible Tokens (NFTs) presented by John Ho, Head, Legal, Financial Markets, Standard Chartered Bank.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. Do your own research!

FAQs

What are the different types of NFTs? ›

The 7 Types of NFTs You Need To Know About
  • PFPs and Avatars. Without a doubt, this format is what most internet users outside the NFT sphere think of when they think of NFTs. ...
  • One-of-one (1/1) artwork. ...
  • Generative art. ...
  • Collectibles. ...
  • Photography NFTs. ...
  • Music NFTs. ...
  • Gamified NFTs.
May 31, 2022

How do you explain what NFTs are? ›

Non-fungible tokens, often referred to as NFTs, are blockchain-based tokens that each represent a unique asset like a piece of art, digital content, or media. An NFT can be thought of as an irrevocable digital certificate of ownership and authenticity for a given asset, whether digital or physical.

What are NFTs everything you need to know? ›

What are NFTs? Non-Fungible Tokens or NFTs for short are crypto tokens that are unique and represent a non-interchangeable set of metadata that's stored on a blockchain. Fungible tokens, on the other hand, are interchangeable. Tokens such as Bitcoin and Ethereum are examples of fungible tokens.

What types of NFTs sell the most? ›

The majority of NFTs in circulation today are artworks — programmable arts account for 99% of all NFTs. This is because artists were quick to capitalize on the conception of NFTs. In present times, virtual artworks including digital pics, GIFs, and short videos are being sold online as though they are physical items.

How do you make money with NFT? ›

The most popular way to generate money from NFTs is by selling them on NFT-dedicated marketplaces. Today, there are a variety of marketplaces and platforms where you can create, list, sell, and exchange NFTs including: OpenSea. Mintable.

How do you read NFTs? ›

To grasp how NFTs function, you need to understand what it means for something to be “fungible.” If an asset is fungible, it can be swapped for another item within a category without changing its value. For instance, if you trade one dollar bill for another dollar bill, you still have a dollar.

How do you explain NFTs to parents? ›

To explain the term Non-fungible Token (NFT) in less than 280 characters I would say: A non-fungible token is an asset in the digital world. Anyone can buy an NFT, like a piece of land, but there is nothing tangible to touch. Any artwork can be tokenized to create a digital certificate of ownership.

How do I know which NFT to buy? ›

So, here's what you should look for to help you decide which NFT to buy.
  1. The Unique Properties of the NFT. NFTs often come in the form of collections. ...
  2. Seller Verification. ...
  3. The Market Platform's Transaction Fees. ...
  4. NFT Liquidity and Market Volume. ...
  5. The Price Performance of the Seller's Other NFTs.
Jun 20, 2022

What is NFT in simple words? ›

NFT stands for "non-fungible token." At a basic level, an NFT is a digital asset that links ownership to unique physical or digital items, such as works of art, real estate, music, or videos. NFTs can be considered modern-day collectibles.

What gives NFT value? ›

Right after minting, an NFT draws value from its inherent characteristics. Over time, the value accrues depending on the utility and community strength of the underlying project. Decentraland NFTs, which refer to virtual land plots in the project, are an excellent example of such tokens.

What makes a good NFT? ›

A good NFT project will have a healthy community following them. The ones with the most engagement are usually the projects which will be the most successful. NFTs are more than just owning a piece of art, they are being part of a community, where a culture has been created, and culture creates a following.

What is the most expensive NFT ever sold? ›

1. The Merge - $91.8 million
  • The Merge - $91.8 million.
  • The most expensive NFT in history is actually a series of NFTs, selling for a eye-watering $91.8m price tag in December of last year. ...
  • Breaking record after record, the world of NFT art really smashed it last year.
Jun 10, 2022

How do I start a successful NFT? ›

5 NFT Tips for Launching Your Next Collection Successfully
  1. Your NFT Community Comes First. Your community is what will ultimately determine the success of your NFT project. ...
  2. Price Your NFT Project Fairly. ...
  3. Plan a Quality NFT Roadmap. ...
  4. Communicate Effectively and Often. ...
  5. Invest in Your NFT Code.
Apr 5, 2022

Is selling NFT easy? ›

Selling NFTs isn't easy money. Creating and then selling your digital work will incur Ethereum network and marketplace costs, and trading NFTs can be uncertain given the volatility in this young movement.

Is NFTs worth making? ›

An NFT has value because the buyer and their community believe it has value—which is true for all art and collectibles. And as time goes by, an NFT gains more of its own character, based on factors like who's owned it and how they've used it.

Can a 16 year old buy NFTs? ›

Many of the platforms involved in NFT trading – such as Axie Infinity, and most of the exclusive NFT 'clubs' – are 18+. But that doesn't mean there aren't loopholes for children to get involved.

How old do you have to be to make an NFT? ›

A popup will give you the option to connect your wallet with Rarible. Click 'Next', then 'Connect', accept the terms of service and confirm you're over 13 years old.

What is an example of NFT? ›

Non-fungible tokens can digitally represent any asset, including online-only assets like digital artwork and real assets such as real estate. Other examples of the assets that NFTs can represent include in-game items like avatars, digital and non-digital collectibles, domain names, and event tickets.

Is it better to mint or buy NFT? ›

In addition, buying an NFT at market can help you save on overall costs. Timing your purchase when network activity is low can save money on gas fees, giving you the opportunity to get in at a reduced price point compared to minting.

What to do with NFT after buying? ›

NFTs can be used to clear out a physical art gallery. Buyers will own NFTs of the art they purchase and can resell the art pieces and the NFT attached. Video game collectible can be sold as an NFT and transferred to the buyer in the video game environment.

Is Bitcoin an NFT? ›

NFTs function like cryptographic tokens, but unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are not mutually interchangeable, and so are not fungible. (While all bitcoins are equal, each NFT may represent a different underlying asset and thus may have a different value.)

How NFTs are created? ›

NFTs are not created. Rather, in popular Blockchain terminology, they are minted. Usually, NFTs are minted on platforms that also facilitate trading of these tokens. These platforms are also called as NFT Marketplaces.

How do I know if my NFT project is good? ›

A good NFT project will always have a vibrant community that signals a stronger collector base. Moreover, joining active community channels will give you a better insight into the project's activities to determine whether it's worth a shot. Alternatively, you can access the project's community on Twitter.

How do I know if my NFT is rare? ›

An NFT is rare if there aren't many copies of it. The lower the number of duplicates, the rarer the NFT will be deemed.

Can anyone make an NFT? ›

An NFT is a unique digital item with a sole owner. That rarity gives an NFT value. Make sure that you own the intellectual property rights to the item you want to turn into an NFT. Creating an NFT for a digital asset you don't own could get you into legal trouble.

Is it illegal to screenshot an NFT? ›

Screenshotting an NFT is illegal if you sell it to someone else or pass it off as your own work. It discredits the original creator of the NFT, especially if it's an art form, and breaks established copyright laws.

What is the rarest NFT? ›

One of the rarest is this joker-face TPunk #3442. It was sold for 120 million TRX in August 2021 to Justin Sun, CEO of Tron. This was the most expensive NFT ever sold on the Tron blockchain.

Can you sell paintings as NFT? ›

NFTs (non-fungible tokens) are one-of-a-kind digital assets. Given they're digital in nature, can physical works of art be turned into NFTs? The short answer is that yes, physical artworks can be minted and sold online as NFTs.

How many NFTs are there? ›

As of 2021 there are around 360,000 NFT owners

According to the Financial Times and Chainalysis, there are approximately 360,000 NFT owners holding around $2.7 million in NFTs between them.

What is the most expensive NFT ever sold? ›

1. The Merge - $91.8 million
  • The Merge - $91.8 million.
  • The most expensive NFT in history is actually a series of NFTs, selling for a eye-watering $91.8m price tag in December of last year. ...
  • Breaking record after record, the world of NFT art really smashed it last year.
Jun 10, 2022

What is a hybrid NFT? ›

The Hybrid Finance Blockchain (HYFI) announces Hybrid NFTs — a special category of NFTs that come with a perpetual copyright license to use the NFT for commercial purposes. Hybrid NFTs are thoroughly verified and hence the risk of plagiarized works, fake collections, spam, frauds, and rug-pulls are almost zero.

How do you start making NFTs? ›

How to Make an NFT
  1. Pick your item. Let's start with the basics. ...
  2. Choose your blockchain. Once you've selected your unique digital asset, it's time to start the process of minting it into an NFT. ...
  3. Set up your digital wallet. ...
  4. Select your NFT marketplace. ...
  5. Upload your file. ...
  6. Set up the sales process.

How many NFTs are sold a day? ›

The most current reports show that 3,200 NFTs are sold per day. That said, the potential for fluctuations is high in this type of market. For those concerned with the power consumption of NFTs through the Ethereum blockchain, NFTs may not be something they want to invest in until this is resolved.

How do NFTs gain value? ›

Essentially, NFTs gain value when buyers are able to successfully sell their NFTs at a higher price than what they paid for them. Similar to cryptocurrency, a collection of non-fungible tokens go up in value when the market demand increases and the overall supply of NFTs available for sale decreases.

Is it illegal to screenshot an NFT? ›

Screenshotting an NFT is illegal if you sell it to someone else or pass it off as your own work. It discredits the original creator of the NFT, especially if it's an art form, and breaks established copyright laws.

Is selling NFT easy? ›

Selling NFTs isn't easy money. Creating and then selling your digital work will incur Ethereum network and marketplace costs, and trading NFTs can be uncertain given the volatility in this young movement.

What is the rarest NFT? ›

One of the rarest is this joker-face TPunk #3442. It was sold for 120 million TRX in August 2021 to Justin Sun, CEO of Tron. This was the most expensive NFT ever sold on the Tron blockchain.

What does spa mean in NFT? ›

Over the last couple of months we've been working on something big here at OV – a new fundraising mechanism for NFT projects, using NFTs themselves that we call the NFTSPA (short for NFT Simple Pre-Purchase Agreement, pronounced “Nifty Spa”).

Is Dragonchain an NFT? ›

Scalable NFT for the Enterprise

Enterprise NFTs on Dragonchain are much more than just consumer collectibles. From tracking supply chain information, to settling money transfers, to controlling access to data between organizations, Enterprise NFTs will revolutionize asset management and ownership.

Videos

1. The different types of NFTs in 5 mins | Non Fungible Tokens | Strive Crypto
(Strive : Crypto circle)
2. Green NFTs - Fact or Fiction? - Panel with Matt Hussey, NEAR at Minting Good, London Tech Week 2022
(CONCAVE SUMMIT)
3. NFTs Are Fueling a Boom in Digital Art. Here’s How They Work | WSJ
(Wall Street Journal)
4. Line Goes Up – The Problem With NFTs
(Folding Ideas)
5. NFTs, Blockchain and Crypto. Explained
(What I've Learned)
6. How To Make Money With NFTs As A Beginner In 2022 (Easy 15 Minute Guide)
(Franklin Hatchett)

You might also like

Latest Posts

Article information

Author: Laurine Ryan

Last Updated: 08/03/2022

Views: 6352

Rating: 4.7 / 5 (57 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Laurine Ryan

Birthday: 1994-12-23

Address: Suite 751 871 Lissette Throughway, West Kittie, NH 41603

Phone: +2366831109631

Job: Sales Producer

Hobby: Creative writing, Motor sports, Do it yourself, Skateboarding, Coffee roasting, Calligraphy, Stand-up comedy

Introduction: My name is Laurine Ryan, I am a adorable, fair, graceful, spotless, gorgeous, homely, cooperative person who loves writing and wants to share my knowledge and understanding with you.