TOP 10 types of NFT tokens

The NFT space has long expanded beyond mere collecting or entertainment. This field is becoming limitless, and startups are finding more and more diverse features that will be useful to users. During the crypto winter, NFT projects built on speculation will disappear. And well-designed, community-driven startups will continue to thrive.

Here are the main types of NFTs:

Let's go through the main areas in which non-fungible token technologies are used.

Art

The NFT mainstream began with digital art auctions. In the wake of the rise of the legendary Cryptopunks, more and more similar collections began to appear.

Of course, the success hasn't always been as stunning as that of Cryptopunks or Beeple, whose work "Everydays: The First 5000 Days" sold for $69 million. But NFTs do provide new opportunities for artists and collectors.

In the art industry there are always questions about advertising, copyrights, royalties, affordability and resale. NFT solves all these problems. Thus, marketplaces like OpenSea help beginners with advertising and promotion of digital art - now the author only needs to upload his art object to the site. They partially solve the issue of affordable prices, because the buyer himself can make an offer or purchase a token at the listing price through a smart contract.

In the traditional market, the resale of works of art is generally prohibited. But NFTs can be resold literally immediately.

Another bonus is the ability for content creators to set up recurring lifetime royalties for all secondary sales.

Create your Own NFT With Us : NFT Marketplace Development Company

Examples: Murakami Flowers Seeds , Destiny , Right-click and Save As Guy , Art Blocks Curated , Hashmask , LetsWalk , Mekaverse

PFP

PFP stands for Picture for proof (“image for proof”) or avatar. Such NFTs are currently only available on Twitter, but other social networks are also actively testing the new trend.

What advantages do PFP avatars provide?

First, profile verification. Twitter verifies that the picture is a genuine NFT and places it in a hexagonal frame.

Participation in DAO communities and early investors of the project. Here bonuses depend on the rules of a particular community - you can receive profit, exclusive services, voting rights, etc.

Access to games or other community products.

Examples: CryptoPunks, Meebits, Bored Ape Yacht Club, Mutant Ape Yacht Club

Music

Music authors have also learned how to earn income from NFTs. This helps offset losses now that physical record sales are down. And also to quickly reach new audiences that cannot be found on music platforms.

Fans, in turn, are willing to buy NFTs to support their favourite artists. After all, in this case, he receives all the income and does not share it with intermediaries (such as Spotify).

Musicians also offer fans unique items in the form of NFTs - for example, a previously unpublished song or video.

You can tokenize entire albums, singles, videos, photos or lyrics. Fans love to buy unique or at least strictly limited works.

Examples: sound. xyz , pianity.com

Games

Regular games have been replaced by the Play-to-Earn model. It allows you to earn crypto for gaming activity.

Interactions in such games often take place using NFTs. Characters, accessories, artefacts, lands - all this comes in the form of NFTs, and the player will be the real owner of these game items. Later, such tokens can be sold on marketplaces.

There are gaming projects on the market (and even entire metaverses) that have been exploiting the enormous potential of NFTs for a long time. Last year the game Axie Infinity was very popular, this year the Move-2-Earn application STEPN was very popular. Which game will be the next star in this new world?

Virtual land

Data stored on the blockchain can be used to digitally map virtual lands. Smart contracts guarantee you the right to lifelong ownership of such lands (and note that they are not afraid of war or occupation). Everything is recorded and stored on the blockchain.

What to do with virtual lands? There are different options here too:

• Wait for the price to rise and resell at a profit.

• Rent out (for example, land in-game metaverses).

• Place advertisements.

• Host virtual concerts or other events.

• Use to provide services (for example, conduct lectures).

• Some crypto lenders even offer loans against virtual lands.

Examples: Decentraland , Sandbox , NFT Worlds , Worldwide Webb

Membership

Membership has long been popular in the crypto community and in business in general. This gives you access to exclusive bonuses and other benefits. But it is NFT that solves the issue of user privacy, data processing and ownership.

Firstly, we don’t need to remember separate passwords for different platforms; just one seed phrase gives access to all subscribed communities. It is important that crypto startups provide good bonuses for community members, as well as access to useful features. And if desired, NFT memberships can be resold at a profit.

Examples: PROOF Collective ,PREMINT Collector Pass, Incrypted NFT-ticket

Brands

As we already wrote, NFT can confirm the authenticity and exclusivity of products. It's no surprise that the brand world is suddenly interested in blockchain and its creative applications.

For example, famous luxury brands have their own virtual stores in metaverses, NFT collections and even blockchain games. But we're not just talking about virtual clothes and accessories.

NFTs can be issued in the format of a certificate of authenticity. Then it will help you check clothes, accessories or jewelry.

With the help of such a certificate, consumers can learn about the origin, quality, manufacturer and other characteristics of the product.

Also, through a smart contract, you can extend the warranty, track delivery, etc.

NFTs are used for advertising in metaverses or blockchain games. Or simply for promotions - for example, giving free art tokens for pre-ordering products.

They can be used for a bonus program or, for example, collaboration with influencers.

Customers can show off virtual clothing on social media, further increasing the brand's popularity.

There are options when, when purchasing an NFT, the user receives a physical product. For example, Obolon sells “victory tokens” that can be exchanged for a limited bottle of beer per day (when the war ends).

In general, blockchain has become another effective advertising and sales channel, which is why brands are actively using it.

Examples: Adidas Originals: Into the Metaverse, RTFKT x Nike Dunk Genesis CRYPTOKICKS , Limited edition NFTs by Incrypted , Community NFTs (Incrypted)

Social NFTs

Social NFTs provide people with one of the basic needs of being around like-minded people and communicating.

This can be either participation in closed online groups or access to real events. And the more popular NFTs become, the more often large social networks think about their social implementation. Thus, the Meta company has already confirmed that Facebook will close the group with access through NFTs.

Another example of a successful social NFT is VeeFriends from blogger and businessman Gary Vaynerchuk. By purchasing such tokens, a fan enters the VeeFriends community, where various lectures are held from the blogger himself.

Examples: VeeFriends , VeeFriends Series 2 , VeeCon Tickets

Domain

Domain as NFT? Blockchain domain name providers offer such services for huge sums. For example, Unstoppable Domains sold the NFT domain “win.crypto” for $100,000 in March, the highest price ever recorded for an NFT.

Tokenized domains are a decentralised account system based on an open source blockchain. Such a domain allows the client to create a wallet address in a convenient text format and link it to the original wallet address.

Other use cases for NFT domains:

Branding is positioning that the company is entering the world of blockchain.

Transfer of tokens/NFTs/messages between the domain and the owner’s wallet.

Convenient address in various DApps.

Ability to create subaccounts for community members.

Broadcast Web3.0 data to a Web2.0 site when connected to a domain.

Such technologies will also develop as Web3.0 expands.

Examples: ENS: Ethereum Name Service , Unstoppable Domain

DeFi

How NFTs work in DeFi can be described using the example of Uniswap V3, a liquidity provider. Its LP tokens are presented as NFTs (ERC-721 standard) and not in the format of regular ERC-20 tokens (as is done in Uniswap V1 and V2).

Based on the pool and interface parameters, the protocol creates a unique NFT that shows the position in a specific pool. The Uniswap NFT token contains the most important information about your liquidity position (pairs, tier level, pool address, etc.). By the way, the NFT owner has the right to change or resell his position in the Uniswap V3 protocol.

And another example is the JustLiquidity service. It is a DeFi platform with a unique NFT staking pool. Here you can lock JulD and JULb tokens for four weeks to receive special NFTs such as BNB NFT cards. The resulting NFTs can be locked again, for which the protocol awards even more valuable prizes.

Example: Uniswap V3

Conclusion

As you can see, we have described 10 use cases for NFTs. But there are many more of them - non-fungible tokens will be useful in culture, sports, medicine, legal services, logistics and so on. Therefore, we will continue to follow the development of this exciting market with interest.