The NFT types must also be considered when talking about digital property. If NFTs have kept creating a craze on the web, this is because they are increasingly establishing themselves in a lot of fields. They have the potential to change how we interact with the internet as well as how we play games, watch movies, or even use social media platforms. Their features making them difficult to counterfeit turn them into valuable assets for both users and brands.
NFT – From a definition to a categorization
An NFT, precisely a “Non-Fungible Token”, refers to a digital token, which cannot be interchanged. The main quality of an NFT is therefore its uniqueness. This unique token is certified through a blockchain whose role is to validate its authenticity. Therefore, it is a digital possession, which can be transferred from one user to another, all within the decentralized and secure system which is the blockchain. The blockchain to prevent the digital falsification of a given property, will thus allow all metadata (signature, author, date, etc.) relating to the exchange to be collectively verified, saved and recorded.
Because an NFT is almost impossible to counterfeit or imitate, it thereby becomes a unique digital good. This is what fundamentally differentiates it from other cryptocurrencies, which can be interchanged and whose age does not affect the value. NFT comes in many forms: image, video, 3D representation, audio, etc. NFTs are generally found on the Ethereum Blockchain, Solana or more. Many people perceive NFT as a revolution because it has been able to update and bring to light the value of a digital creation.
An NFT works practically like a work of art. Its rarity, its anteriority, its creator, all have a great impact on its final value. This is the reason why it tends to overrun arts, fashion, video games and more. In video games for instance, an NFT can be an accessory able to provide more functionality to a character, or simply to customize his online avatar. In technology, it is also possible to obtain a software in the form of an NFT which unlocks many operating properties. This non-exhaustive table immediately gives an idea of all the possibilities which NFTs can offer.
10 NFT types brands must acknowledge for their business strategy
NFTs are a new form of digital assets that are not constrained by the same use. They have all these specific features that regular assets don’t have, which makes them more appealing to users. We can group them into 10 NFT types, each with their own unique function.
Artistic tokens as part of NFT types
Artistic NFTs are broadly artists’ realizations or digital artworks. Those NFTs have in fact the highest sales. For instance, Beeple collection “Everyday” was sold for $ 69.3 million. The power of NFTs in the artistic field lies above creative property rights. An artist is no longer afraid of seeing his works illegally reproduced, thanks to the Blockchain technology. This has the effect of re-boosting the value of artistic productions and making them unique and exclusive again. In art, this is a real way to boost this market and make it even more successful.
“Everyday” is a Beeple’s artwork collecting 5,000 images he drew over 5,000 days in a row. It was bought for $69 million and was, before the end of 2021, the most expensive NFT art sold, until the artist Pak decides otherwise. The artwork “The Merge” is an NFT sold for the outrageous sum of $ 91.8 Million via Nifty Gateway.
Collectibles- NFT types
Collectibles can be illustrated as a set of diverse and varied tokens which can be collected, held or resold. One of the most popular NFTs collectibles include Cryptokitties (virtual cards of a cats selection, all different from each other) and Cryptopunks announcing the beginning of NFTs in 2017. In the Collectibles, there are three sub-categories of NFT types which are digital collectibles and trading cards NFT.
- Digital collectibles have been around for a while but have become popular and sought-after, particularly as the industry opens up to the general public. People have turned them into Profile picture Avatars on social media. The Cryptopunks collection for instance is one with the highest price, with the Bored Ape Yacht Club (BAYC) collection not to be left out. Celebrities have made BAYC really desired, as with some Cryptopunks or even Meebits collection.
Trading cards NFT
- These are unique NFT cards, allowing a player to unlock or obtain additional assets, from whose he is the sole holder. The real advantage about these cards lays upon the fact that they can be used on different games belonging to a blockchain, still with the same features and privileges. A great example of trading card game is Sorare game, a Fantasy Football game, or Gods Unchained on Ethereum blockchain.
Big sports moments tokens
- Since they are not physical, sports moments NFTs can be quite valuable. Sports collectibles are a popular form of unique tokens by far. This is because they help fans commemorate and celebrate memorable moments in their favorite sport. From the birth of a historic milestone to an exciting touchdown, these NFTs can capture nearly any moment a fan wants to forever preserve it in digital format. Not only can they be purchased and displayed on a secure online platform, they can also be used as currency within the NFT economy.
- NBA Top Shots captures iconic basketball moments, such as a spectacular dunk or a game-winning shot, and transforms them into digital assets that fans can buy, sell, and trade on the marketplace. Each NFT represents a specific moment and comes with its own serial number and rarity level, adding a layer of exclusivity and value to the collectibles.
Utility & Security tokens
Utility tokens make possible to offer of specific services or access to its owners. It can be a domain name for example, like Unstoppable Domains which gives the possibility of having a domain name in .crypto. A Security token on the other side is purely a digital asset, a real estate asset or an investment proof in a company. Utility and Security tokens are both seen as NFT types in the future. They allow digital assets to be used in more real-world scenarios than it would seem on the surface. The tokenization of real estate or even luxury items are two such examples.
Virtual real estate NFT
A virtual real estate in the metaverse represents a digital space offering its owner the ability to personalize it endlessly. It could be fractions of web space, on websites, in an online video game or virtual lands. It can a place for brands to extend their digital advertising, for instance through fractions of space purchased on video games or other websites, as it is done in metaverses.
For example – In November 2021, Adidas purchased plots in Sandbox and termed it “adiVerse”.
Gaming tokens as NFT types
Gaming is the leading industry for the adoption of NFTs. The advent of crypto games has brought about a new opportunity for players to earn and trade their in-game assets as NFTs, which can be sold anywhere on the internet. The gaming tokens have now taken center stage by creating a new generation of NFTs with exciting features. In-game items such as skins, weapons, ribbons, characters are sold in the form of NFTs.
There are many reasons why we should expect crypto games, especially non-fungible tokens, to become more important in the future. For one thing, users may want their game items to have a more tangible value. They are not limited to a certain game or platform and can they be sold or traded on secondary markets.
NFT Wearables in Virtual Fashion
Wearables in Virtual Fashion are the newly emerging trend in Fashion and Beauty Industries. They also portray the bond between what a user holds in both virtual and physical world, as they refer to their user’s avatar being able to be dressed with in virtual universes or metaverses. As an example, Nike and the NFT Cryptokicks is a good example of an NFT wearable. Digital accessories such as pans, bags, hats, shirts, etc can be used for garment purposes. But more than that, NFT wearables can be found with digital Native brands such as DressX or The Fabricant, using Augmented Reality to dress users.
The NFT Wearables of today are the direct inspiration to high fashion and luxury. They help to create a better, cleaner and more sustainable environment while they add a new dimension to the virtual world.
Memes tokens as NFT types
Being part of pop culture, Memes NFT are one of the most popular NFT types. Having started with Pepe The Frog, the sale of memes as NFTs is one of the most significant achievements in the field of NFTs in recent years. Meme creators are ready for a Web3 ecosystem that will expand in the coming years, which is why they decided to sell memes as NFTs.
Music and Media tokens
Music and crypto has always been interconnected. The NFT tokenization of music has now made it possible for those who love music to take control of the monetization methods. With Blockchain technology paving its way through the industry, artists can now get back most of their royalties. More importantly, they have freedom in distributing their content, including reselling or leasing the asset to others. Artists are able to make money directly from their fans and loyal followers without having to worry about third party intervention.
Another example of transforming media into NFTs is the seven original scenes of the movie Pulp Fiction directed by Quentin Tarantino. Those NFTs involve a handwritten text of the first scripts of the film as well as the comments of the director himself which only the NFT holder can enjoy.
Identity as a part of NFT types
Identity tokens are a great mode of identifying individuals, companies and corporations. Making ID tokens immutable and unique to each individual means there’s no interchangeability, hence NFTs can help in protecting identity. It is built with the Ethereum standards token ERC-725 standard, refering to a unique identity listed on the Blockchain. It is great for individuals who get a full powers over the management of their identity data.
They can as well be issued for all types of certifications and licenses. These include government-issued documents like passports, birth certificates, and voting cards; professional certifications like educational certificates or skill sets demonstrated by an individual; and even small business permits and licenses. Identity NFTs can also be packaged as gift certificates for use for large events, helping establish trust in the case of large-scale events.
Event tickets tokens
Event tickets is an option for the NFT market. Millions of people are purchasing event tickets every year, and many of these tickets are lost, stolen and especially counterfeited. When event tickets are minted as NFTs, it helps to reduce fraud, because no one can fudge the numbers on a blockchain ledger. POAP as Proof of Attendance Protocol is also part of this category.
Various startups are now launching NFT ticketplaces; one of the most notable being YellowHeart, a Web3 marketplace for ticketing, music, and memberships.
How can brands use the different NFT types to boost their business strategy?
Brands, especially those in the luxury field, are very often victims of counterfeiting. The NFT is therefore a way of restoring the brand image by highlighting the whole creation cycle and certifying the authenticity of each product. As an example, we could integrate a QR code on a packaging, which the consumer would only have to scan. He would thus have directly under his very eyes the certificate as a proof of the originality of the article he just purchased. This is a great way to reassure the user about their purchase.
Each type of NFT has its value and use for a brand business strategy. The point here for the brands is to be clear with the results they are looking for. Each brand must be fixed on its main objective because that is where all the actions will come from, as well as the type of NFT to choose.
For example, if the focus is more on a new source of income, it will be interesting for a brand to create collectibles. To boost the engagement and brand loyalty, a utility token will be more meaningful. A full article is dedicated on how brands should adapt an NFT category to their business strategy.
NFTs are for sure, a great valuable tool for brands. They give another dimension to the customer experience virtually and in real life, as it is an argument of trust for consumers on the items they purchase. NFTs promote a righteous climate of trust and brand loyalty. As long as METAV.RS is concerned, it is about making sure the brands deliver the right metaverse experience to the end users.
To learn more on NFTs and how they can be used to attract more consumers, read NFT TREASURE HUNT: THE BRAND’S GOLD MINE TO TARGET THE GEN Z