INTRODUCTION TO NFTs
What is NFT ?
NFT (non fungible token) is a unique digital identifier that cannot be copied, substituted or subdivided. it is recorded in a Blockchain, and that is used to certify authenticity and ownership.
NFTs can represent real-world items like artwork and real estate. Tokenizing this real world tangible asset makes buying, selling and trading them more efficient while reducing the probability of fraud.
TYPES OF NFTS
1. Collectible items/Trading cards
Collectibles being sold for thousands of dollars isn’t something new, and it’s the same for NFTs — can be sold as digital trading cards or kept as collectibles.
The first instance of NFTs being seen as collectibles was with the emergence of Cryptokitties — unique digital kittens which became popular among collectors in 2017. It’s also credited with being the first use case of NFT.
The NFT market is flooded with different types of trading cards and collectibles listed by companies — as long as it’s deemed collectible.
2. Artwork
NFT artworks are a unique concoction of technology and creativity.
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. And, these are the most expensive NFTs and sometimes sell for millions. |
3. Event ticket
NFTs can also be used in the form of event tickets facilitating the verification of people’s tickets and identity. Organizers of popular events such as concerts and music festivals can utilize a selected blockchain to mint a limited number of NFT tickets.
4. Music and media
The experiments of converting music to NFTs lead to the development of another variant of NFTs. Media files and music can now be linked to NFTs with the true ownership claim given to an individual.
4. Music and media
The experiments of converting music to NFTs lead to the development of another variant of NFTs. Media files and music can now be linked to NFTs with the true ownership claim given to an individual.
NFTs also allow musicians to keep roughly 100% of their earnings without having to worry about the record label and streaming platform cuts — which is why it’s well-received by artists.
5. Gaming
Game creators have developed profound levels of interest in NFT and using them immensely. NFTs are used as in-game items in online gaming platforms. Non-Fungible Tokens helps drive the growth of in-game economies through immutable ownership records for in-game items.
Only in-game content such as characters, skins, etc., are sold as NFTs and not the entire game. Another use case of NFT is in the sale of a limited edition version of DLC assets to the player who wants to enjoy the exclusive uniqueness of NFT assets. This, however, doesn’t stop the company from selling its regular DLC.
6. Big Sports Moments
Another way NFTs have been used is to capture memorable sports moments in form of short video clips. This doesn’t have a physical equivalent like other NFT types we talked about so far but the historical significance is priceless — makes sense while they are expensive. Some of these NFTs can feature sports moments from game-changing touchdowns to groundbreaking slam dunks.
7. Virtual Fashion
Why should fashion be any different from anything else bought and sold on the NFT market? It’s all about personal preference when it comes to splurging money on a gorgeous Bikini you won’t be able to wear. You can use NFTs to style up your online avatars instead of buying NFTs artworks.
This NFT type is unquestionably reserved for the more fashion-conscious and opulent individuals. And of course, each item would be limited and one-of-a-kind.
8. Real-world assets
Tokenizing Real-World Assets
There are many speculations as to NFTs being used as real-world tokens in the future. The advancement in the NFT domain is heading towards achieving that and the odds of it becoming a reality are promising.
The cryptographic proof of ownership that NFTs provide makes it possible for it to reflect real-world assets. Many NFT projects are currently focusing on the tokenization of luxury items and real estate. You get more options when buying a house or a car using NFT deeds.
9. Memes
NFT Memes
The sale of memes as NFTs has been the most significant achievement in the field of NFTs in recent years. Memes have been linked to NFTs, despite their popularity among internet users and being part of popular culture. The preparedness of meme creators to develop an expanding futuristic ecosystem is demonstrated by the sale of memes as NFTs.
10. Domain names
The NFT market has made it possible for users to register and sell domain names. You can create a detour around having to pay a third-party company for the management of your domain name by acquiring one on the NFT market.
There are exclusive rights on the name ownership meaning you don’t need the middleman.
Examples of domain name NFTs providers are Ethereum Name Service (ENS) and Unstoppable Domains through decentralized domain name services.
Lastly, Nfts are one of a kind and digitally scarce commodities proven useful in cryptocurrency. You can use these gadget to manage and transact with your cryptocurrency.
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