The NFT trend has appeared everywhere, anything can become an NFT. So what types of NFTs are hottest right now? Let’s explore with Coinminutes right away through the article below.
What are NFTs?
NFTs are the acronym for Non-fungible Tokens. This is a non-fungible token that encodes a unique asset on the Blockchain.
There are many cases where NFTs are needed, such as A digital asset in a game, an encrypted work of art for users to collect, or even real-world objects. The NFTs created completely solve the problems of rights and ownership of assets.
Thanks to the non-fungible nature of this token, tokenized assets are unique and cannot be copied or swapped for another token.
To simply understand this concept, we have an example: when you borrow 1 BTC, you can pay with another 1 BTC. However, when you borrow a work of art, you cannot return it with another work of the same value.
Once encoded, works of art cannot be released in multiple versions and cannot be replaced. This is an extremely important feature, each NFT is different and completely irreplaceable.
7 Types of NFTs
NFT Artwork is a popular form of NFT, which is a unique work of art, released individually or launched in the form of small collections on the Blockchain. In the digital age, physical works can easily be copied and plagiarized. However, for NFT Artwork, it is a different story, NFT provides sole ownership and certification for the author to protect their rights. This means that the Ardwork NFT has only one original confirmed to exist. The most valuable NFT Artwork ever sold was “The Merge” for up to 91.8 million USD.
Similar to visual works, you can also convert audio into NFTs for users to collect.
More and more musicians and singers are taking advantage of blockchain technology, specifically NFTs, as a way to mint and preserve everything from digital music to album art, and other memorabilia.
Using NFTs, artists can tokenize their songs and albums, provide royalties to creators and producers, and sell their digital goods for an additional source of income if needed. they want to.
An example of this type of NFT is a song called “Time in Disguise” performed by members of the band Kings of Leon. They turned the above song into an NFT and put it on a SpaceX flight to space.
NFTs In Gaming
The characteristics and utilities of blockchain have attracted many gamers and cryptocurrency investors to enter the market. Gamified NFTs is a concept that emerged in 2021 – the blooming time of the GameFi market. This is the term for the types of NFTs used in games.
Gamified NFTs combine game elements and digital asset ownership to create an interesting experience for users and can help users earn additional income when participating in the game experience.
Some of the most popular NFT games include Axie Infinity, The Forge (Yuga Labs), Gods Unchained…
Avatars / Profile-picture Projects
Avatars, profile pictures, or PFPs for short, are a popular type of NFT that users can use as personal avatars in web3. Each PFP collection represents the owner’s unique personality and style.
NFT Avatar creates different characteristics of clothing, accessories, facial expressions,… creating a unique and different appearance for each virtual character. When a user owns an NFT and uses it as an avatar, this NFT represents their identity in the crypto world and metaverse.
Some famous PFP collections include:
- Bored Ape Yacht Club
- Pudgy Penguins…
Besides NFT Artwork, we also have its advanced form called NFT Generative Art. This form of NFT is created by synthetic algorithms, artificial intelligence (AI), or physical robots. This type of NFT is difficult for ordinary users to accept because to be able to evaluate the value of NFT requires high expertise.
Generative Art is algorithmically created artwork that has emerged since the Renaissance and boom when NFTs appeared. Famous works such as Art Blocks, Autoglyphs, and Braindrops have contributed to promoting the development of this art form.
Along with NFT digital artworks, collectible NFTs are also the most used cases by many users.
Owning and trading collectible NFTs not only brings collecting joy to holders, owners can also display, share and experience their unique NFT works, and participate in activities trading activity in the collecting community.
A few reasons why many users are interested in owning NFTs include the collectible factor. Because of its uniqueness and limitations, the works become extremely attractive.
One of the most famous NFT collectibles is NBA Topshot – moments of famous NBA basketball players. In addition, other collections from RTFKT, Adidas, and Porsche can be mentioned.
NFT photography has been a boon for artists, allowing them to sell their work more easily than ever. Faced with the NFT boom, photographers are interacting with digital images in a whole new way. Unlike traditional publications that are widely published, NFTs help increase the rarity and value of their works.
An extremely famous example of this type of NFT is the photography work of young Ghozali Ghozalo. In 2021, this Indonesian student uploaded 933 selfies taken from 2017 to 2021 to the NFT platform OpenSea. This unusual collection is worth more than $1 million and has created a boom on the trading floor.
Why are NFTs Valuable?
Why are NFTs so valuable? This is certainly a question that many people are interested in. The essence of NFT is to help users encode their real-world assets, and store and trade them in blockchain token format. This brings a greater attraction to markets that few people are interested in such as fine arts, artwork, rare antiques, etc. NFTs themselves are collectible because each item is unique, they also help bring profits to gamers and investors. Thanks to Blockchain technology, investors and gamers can make money by selling in-game items, in virtual casinos like The Sandbox or virtual amusement park Decentraland.
In addition to art collections, items such as games, music, real estate, and wine… can basically be turned into NFTs. Even financial assets like whole life insurance policies can be converted into NFTs. NFT helps users store their identity data, as well as their ownership rights, on the blockchain. This will help increase the privacy and integrity of user data. Ensuring the asset transfer process in the future has a seemingly absolute level of safety because it is a unique, irreplaceable encryption.
Above are the 7 most prominent types of NFTs that CoinMinutes has compiled and brought to you. Hopefully, the above article has brought useful information and helped you choose the right type of NFTs to participate in.