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 focus on the main types of NFTs.
As a type of 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 their non-fungible nature, which means they can 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 multiple people can hold the same NFT. The main categories currently found in the market are PFP, domain names, artwork, real estate, and membership cards.
Now let's take a look at the main types of NFTs.
PFP#
In simple terms, PFP stands for Profile Picture. Using NFTs as profile pictures is perhaps the most common application of NFTs and a major reason for their widespread adoption. Many influential figures in the crypto community have famous NFT profile pictures, such as punks. Many crypto OGs use punk avatars to develop their careers, and people often associate those with punk avatars as crypto OGs.
The difference between avatars and other NFTs is that you need to check your wallet to see if you own other NFTs, but avatars can be seen on any social platform and media. They are easily recognizable and, therefore, help in their rapid dissemination.
In addition to personal identification, avatars can also serve as a link within communities. 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, you are more likely to establish a connection with other Bored Ape owners compared to other users.
Digital Real Estate#
Digital real estate refers to properties in the digital world. In 2021, the concept of the metaverse became very popular, leading to a high demand for various digital real estate properties. Owners of real estate NFTs can trade or lease their properties. The main digital real estate projects include Sandbox, Decentraland, and Somnium Space. There are also new projects in development, but caution is advised as the long-term value of real estate in the metaverse is still uncertain.
Domain Names#
Domain names are recognizable names for addresses on the blockchain. Taking Ethereum as an example, finding my address would require querying the address: 0xA6097a4adf23553623A7917bbBb28c7bb2a7775c. However, the characters are too long, not easily memorable, prone to typos, and not easily shareable. The solution is to use a universal standard to generate a 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 name purchases are billed annually and involve gas fees. Ethereum gas fees can be expensive, so if the domain name is not frequently used, it is not recommended to purchase one when starting out.
Of course, many people engage in domain name trading as a business, similar to the hoarding of 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)#
In simple terms, owning an NFT membership card is equivalent to having a digital membership card. With it, we can participate in various online and offline conferences and gatherings. The organizers will verify our NFT, and without it, we cannot enter the event venue.
Sometimes, NFT membership cards also serve as access cards for clubs or communities. To enter a private club or community, we must hold the NFT they require. Sometimes, a club may have different levels of NFTs, and we can only browse or participate in areas corresponding to our NFT level.
If we purchase an NFT from a musician, it can grant us the privilege to watch their performances. In this case, the NFT acts as a coupon, membership card, or ticket.
As web3 use cases continue to evolve, there are also specialized organizations applying NFTs to more everyday scenarios, such as membership cards for chain convenience stores, coffee shops, clothing brands, etc.
The above mentioned are several classifications of NFTs, but we also know that NFTs go beyond these categories. There are loot NFTs, dynamic NFTs, XNFTs (NFTs with applications), and more. NFTs are definitely more than 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