NFTs are one of the foundations of web3. This series will introduce NFTs through 30 short articles, allowing everyone to understand and master the relevant knowledge about NFTs from scratch.
In the previous article, we learned about several major NFT markets. In this article, we will look at the main types of NFTs.
As a digital asset, NFTs have different classifications, just like physical assets. Different NFTs have differences in form, size, presentation, and other aspects. But we all know that the core of NFTs lies in being a non-fungible token, which can be used to represent various types of digital assets.
The classification of NFTs is not fixed. For example, we can classify them based on their presentation forms, such as images, music, videos, etc. We can also classify them based on their purposes, such as digital real estate, domain names, avatars, membership cards, etc. Differentiating them based on ownership determines whether they are 1v1 or not. Non-1v1 NFTs mean that an NFT is held by multiple people. The current classifications in the market mainly focus on PFP (Profile Picture), domain names, artworks, real estate, and membership cards.
Now let's learn about the main types of NFTs.
PFP (Profile Picture)#
Simply put, it refers to digital avatars. Using NFTs as avatars is perhaps the most widely used application of NFTs, and it is also the primary reason for the widespread adoption of NFTs. Many influential figures in the crypto community have famous NFT avatars, such as punks. Many crypto OGs use punk avatars to develop their careers, and it is easy to associate someone with a punk avatar as a crypto OG.
The difference between avatars and other NFTs is that you need to check your wallet to see if I own other NFTs, but avatars can be seen on any social platform and media. They are easily recognizable, which helps them spread quickly.
In addition to personal identification, avatars can also serve as a link within a community. People from different regions and cultures can quickly recognize and interact with each other because they hold the same NFT avatars. For example, if you use a Bored Ape as your avatar, it is easier for other Bored Ape owners to establish a connection with you compared to other users.
Digital Real Estate#
Digital real estate refers to real estate in the digital world. It became very popular in the metaverse in 2021, and various digital real estate properties sold very well. Owners of real estate NFTs can trade and lease their holdings. The main real estate projects include Sandbox, Decentraland, and Somnium Space. Some new projects are also emerging, but caution is advised because the long-term value of real estate is questionable until it has more utility.
Domain Names#
Domain names are recognizable names for addresses on the blockchain. Taking Ethereum as an example, finding my address would require querying my address: 0xA6097a4adf23553623A7917bbBb28c7bb2a7775c. However, the characters are too long, difficult to remember, prone to typos, and not easily shareable. The solution is to use a universal standard to generate a convenient and recognizable name to represent my address. In Ethereum, this solution is provided by ENS (Ethereum Name Service). We can purchase an ENS domain name to represent our address. For example, mine is hoodrh.eth.
Domain names are billed annually and have gas fees. Ethereum gas fees are expensive, so if the domain name is not used frequently, it is not recommended to purchase one when starting out.
Of course, many people engage in domain name trading, similar to those who hoarded internet domain names in the past. They hope that one day their domain names will be sold at a high price. This is not suitable for me, so I can only watch.
Membership Cards (Pass)#
Simply put, holding an NFT is equivalent to holding a digital membership card. With it, we can participate in online and offline conferences and gatherings. The organizers will verify our NFT, and without it, we cannot enter the event venue.
Sometimes, NFTs also serve as membership cards for clubs or communities. To enter a private club or community, we must hold the NFT they require. Sometimes, a club may have NFTs of different levels, and we can only browse or participate in the corresponding level's area.
If we purchase an NFT from a musician, it can give us the privilege to watch their performances. In this case, the NFT acts as a coupon, membership card, or ticket.
Of course, as web3 use cases continue to evolve, some professional organizations have started applying NFTs to more everyday scenarios, such as membership cards for chain convenience stores, coffee shops, clothing brands, etc.
The above mentioned several classifications of NFTs, but we also know that NFT classifications are not limited to these. There are also loot, dynamic NFTs, XNFTs (NFTs with applications), etc. In short, NFTs are definitely not just a simple image.
After reading this article, I hope everyone can have a better understanding of NFTs.
If you want to learn more, you can find me in these places:
Digital Territory: HoodrhXLog: Hoodrh
Twitter: Hoodrh
Discord Chat Group: Hoodrh
Mirror: Hoodrh
SubStack: Hoodrh
Nostr: npub1e9euzeaeyten7926t2ecmuxkv3l55vefz48jdlsqgcjzwnvykfusmj820c