How many types of NFTs are there?

The most difficult thing in anything blockchain, crypto, NFT, metaverse these days is to be able to separate signal from noise, let’s try to bring some clarity into what is happening with NFTs.

It’s clear that blockchain can have many uses, smart contracts being one of them, with tokens being both fungible (example: cryptocurrencies) and non-fungible, and the market has started expanding with creative cases in the last year or so.

As I was researching the web to find how people — smarter than me -have categorized the existing cases already launched in the market, I found a wealth of listicles with different takes, so I decided to aggregate the best understanding I have as of now.

TL;DR; All types: Digital Artworks, Music NFTs, Video clips & GIFs, Memes
Avatars & PFPs, Video games items, Trading cards & collectibles, Metaverse land, Virtual fashion, NFT/Crypto domains, Text-based NFTs, Ticket & membership NFTs, Real world assets.

See at the bottom of the post for few examples of original articles and sources.

  1. Digital Artworks
    These are mainly digital artworks that come with a public certificate of authenticity and ownership issued by the digital ledger on which they are stored.
    Digital marketplaces provide a platform for bidding, as well as renowned artists, to showcase their artworks for sale while collectors get exclusive access and ownership of them. This led to the rise of some of the most popular digital artists like PAK and Beeple. PAK broke the record of ‘The First 5000 Days’ by artist Beeple which earned a staggering US$69.3 million in March 2021 in an auction by Christie’s. PAK sold 2,66,445 NFTs for a total of US$91.8 million. The sale was held through Nifty Gallery and saw a new technology whereby when a collector bought a considerable number of NFTs, the tokens merged together in their crypto wallet to give rise to new NFTs that cannot be found elsewhere. Other noted digital artists include MATTDESL, XCOPY, HACKATAO and FEWOCIOUS who have huge Instagram and Twitter followings and NFT collections that score thousands of dollars in sales.
  • Demonstrating provenance. Novel assets such as a rare antique or original painting by a famous artist derive their value from their authenticity and provenance. NFTs can act as a digital record of authenticity and provenance on the blockchain; each sale, trade and owner is built into the NFT’s ledger, and the NFT’s metadata might contain a digital certificate of authenticity. By resolving uncertainty around as asset’s provenance, an NFT might actually enhance the asset’s value.

Links to related articles and sources

Any feedback welcome and thanks for reading.

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@CDM / Chief Evangelist @deltatre

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