The interest in understanding the different NFT types has been growing in recent times.  People are interested in the promising economic potential associated with NFTs apart from a vision for transforming conventional asset management. The gradual growth visible in the domain of non-fungible tokens can ensure prolific opportunities for NFT creators and investors. A clear impression of the different types of non-fungible tokens could help in making better decisions in your NFT journey.

Understanding The Different Types Of NFTs

The foremost classification of NFT types refers to the general categories. The three common types of NFTs include,<ul><li class="ql-align-justify">Original or copy of work, documented on a blockchain network or <a href="https://101blockchains.com/what-is-dlt/">DLT</a></li><li class="ql-align-justify">Digitally native NFTs, which have ownership rights to the work constituting the NFTs</li><li class="ql-align-justify">NFT metadata, which involves the NFT providing representation of ownership for metadata files related to the internet</li></ul>

Common Categories of NFTs

The foremost example of NFTs emerged with the development of Cryptokitties, which are online collectibles. As a matter of fact, Cryptokitties are the first instance of people using NFTs. Interestingly, Cryptokitties became so popular in 2017 that they congested the Ethereum network.Cryptokitties are one of the striking additions to non fungible tokens list in the category of digital collectibles. They are basically digital kittens with distinct traits that make them popular and favorable than others.

Collectibles

Artwork is also another prominent candidate for NFTs. The common types of non-fungible tokens in this domain refer to programmable art, which features the unique concoction of creativity and technology. Currently, there are many limited edition artwork pieces in circulation with the scope for programmability under certain conditions. The use of oracles and smart contracts could help artists in creating images which are represented on blockchain networks. Digital art NFTs have also encouraged possibilities of participation from the legacy arts industry.

Artwork

Another promising addition among the types of NFTs would refer to event tickets. Such types of NFTs allow people attending events such as music festivals and concerts to verify their identity and tickets. Event managers could mint a specific number of NFT tickets on a selected blockchain platform. Customers could purchase the tickets through an auction and store them in their wallets with easy accessibility through mobile devices

Event Tickets

The domain of music and media is also trying out experiments with NFTs, thereby leading to another category of NFTs. It is possible to link music and media files to NFTs, thereby enabling an individual with true ownership claim to access the files. While artists get the advantages of reaching out directly to their followers and new audience, the listeners get a premium experience. The sense of exclusivity in purchasing NFT music is one of the foremost reasons for infusing traits of vintage vinyl records.

Music and Media

The common types of non fungible tokens in the domain of gaming are primarily focused on in-game items. NFTs have evoked profound levels of interest among game developers. They can offer the functionality of ownership records for in-game items, thereby driving the growth of in-game economies. NFTs in the gaming sector also focuses on introducing a wide array of benefits for players.  While in-game collectibles were common requirements for a better experience of the games, NFTs have the potential for changing their value.

Gaming

Even though you cannot find many NFT types serving as tokens for real-world items, the progress in NFT domain can make that happen. For example, many NFT projects are presently focusing on the tokenization of real estate alongside luxury goods. NFTs are basically deeds, and they can introduce the flexibility for purchasing a car or home with an NFT deed. Therefore, NFTs representing real-world assets can capitalize on the opportunities with cryptographic proof of ownership.

Real World Assets

One of the crucial traits of non fungible tokens is scarcity. Every NFT is unique and cannot be interchanged with any other token. In the case of identity NFTs, the working is similar to that of event tickets NFTs. They can serve as unique identifiers, thereby serving as reliable support for identity management systems.  The common applications of identity-based NFTs could be evident in certifications and licensing. Minting certifications and licenses and NFTs for proving and verifying records of an individual could change the identity management sector.

Identity

The most significant advancement in the domain of NFTs in recent times is the sale of memes as NFTs. While being a part of popular culture and an instant favorite among internet users, memes have also been associated with NFTs. The sale of memes as NFTs showcases the potential for unique meme creators to participate in an evolving futuristic ecosystem.

Memes

The growing interest in discovering the value of NFTs and their variants are clearly evident among blockchain enthusiasts. Learn more about different NFT types now.

Stashed ideas

Understanding the Different Types of NFTs

<ul><li>NFT's  (non-fungible tokens) are digital tokens that are stored on a blockchain.</li><li>In cryptocurrencies, each coin is the same, whereas, each NFT is unique. NFTs can be sold as a way to prove ownership of a digital file.</li><li>The files are not stored on the blockchain. Instead, a link to the file is stored along with the token that acts as proof of ownership.</li><li>You can have two or more NFTs for the same file. For example, an NFT can be rare because there are only 10 copies or it can be common because there are hundreds of the same NFT that have been "minted."</li></ul>

Quick overview of an NFT

<ul><li>Transaction fees. Some platforms will let you create NFTs for free, but selling them has other demands.</li><li>Most NFTs are sold on the Ethereum blockchain, and every transaction on the Ethereum blockchain costs fees.</li><li>The fees, called "gas", are paid to the miners. Nearly everything you do on the blockchain will cost gas. While most transactions will go through, paying gas does not always guarantee your transfer will go through. </li><li>The most popular NFT marketplaces mostly run on the Ethereum blockchain, which uses an energy-intensive "proof of work" system.</li></ul>

Considerations when deciding to sell an NFT

Many platforms allow you to sell NFTs across a variety of blockchains. Two of the more popular marketplaces are OpenSea and Rarible.  Both allow you to create NFTs on Ethereum without paying fees, using "lazy minting" systems. Lazy minting lets you create an NFT and put it up for sale without writing to the blockchain. When someone buys it, the fees for writing your NFT to the blockchain are added to the sale. Fees are 2.5 % The catch:<ul><li>With OpenSea, you have to initialize your account ($300 to $400 range).</li><li>With Rarible, trying to remove your NFT from sale will cost a fee ($20 to $30).</li></ul>

Choose a platform to sell your NFT on

<ul><li>Rarible lets you sell NFTs using the Flow blockchain if you sign up for it using the Blocto wallet. However, choosing to use Flow on Rarible will limit you to single edition NFTs. You can't sell them with an auction.</li><li>OpenSea will let you sell using the Polygon blockchain.</li></ul>When you use non-Ethereum blockchains like Flow or Polygon, people can't use Ethereum to purchase your NFTs without added gas fees. This may put some collectors off.

Alternatives to Ethereum

Wallets are applications you use to store your cryptocurrencies and any NFTs you end up minting or buying. Use a wallet that is compatible with the blockchain you're using.<ul><li>MetaMask's wallet is widely supported by Ethereum-based applications like OpenSea, Foundation, etc. </li><li>Coinbase has its own wallet you can use as an extension or an app and is supported by most platforms.</li></ul>Once you have the browser extension or app installed, click on "create new wallet", then create a username and password. They will give you a "seed phrase", which is 12 random words. Without it, you can't recover your account.

Set up a wallet

Once you have a wallet set up, connect it with the NFT marketplace you want to use. <ul><li>With OpenSea and Rarible, click the create button in the top left which will ask you to connect your wallet. You will be presented with a list of compatible wallets you can choose from.</li><li>If you installed a Metamark or Coinbase extension, a popup will ask you if you want to connect your wallet.</li></ul> Caution: Think twice if an unknown site asks to connect to your wallet, as many scammers could try to access your funds or NFTs.

Connect your wallet

<ol><li>Click the Create button in the upper right-hand corner.</li><li>Click the box with an image icon in it to upload the file you'll be selling as an NFT.</li><li>Give it a title. Add a URL in the External Link field that points to your website or Twitter account. Use the Description field to explain to potential buyers what your NFT is.</li><li>You can add text that acts as unlockable content, which the buyer of the NFT will be able to see.</li><li>Select which blockchain you're minting your NFT to.</li><li>Click the Create button.</li><li>Click the Sell button and add the amount and other information.</li><li>Click the "Complete listing" button.</li></ol>

Create an NFT on OpenSea

<ol><li>You will be asked whether you want to create a single- or a multiple-edition NFT.</li><li>Next, upload the digital file using the Choose File button. It will eventually end up on the InterPlanetary File System (IPFS),  a decentralised way to store media.</li><li>Set your selling options - "fixed price", "open for bids", or "timed auction."</li><li>Add unlockable content (optional).</li><li>Choose your collection.</li><li>Decide if you want the Free Minting option. If you turn it off and use Ethereum, you'll have to pay a gas fee.</li><li>Give your NFT a title and description.</li><li>Click the Create button, and complete the next series of actions.</li></ol>

Listing an NFT on Rarible

This article explains the basics of NFTs and then explores how to create an NFT using two of the most popular marketplaces. It is meant to be a brief guide to help you get started.

NFTs are the latest craze (or fad?) on the internet, and it seems like everyone’s getting into them. Here’s how you can create and sell your own using marketplaces like Rarible or OpenSea.

How to create an NFT — and why you may not want to

A digital coin is an asset native to its own blockchain. For example, Bitcoin exists on the Bitcoin blockchain, Ether operates and functions on the Ethereum blockchain, etc. Digital coins don't move physically when you send and receive them. They exist as data on a database (or blockchain) and are tracked and verified by computers around the world. Coinmarketcap lists over 900 different examples of coins, such as Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH), Ripple (XRP), and Cardano (ADA).

Digital coin definition and examples

Digital coins are generally used the same way as real-life money in your wallet. For example, Bitcoin can be used to pay for goods and services all over the internet and often in real-world places too. You can store it for a long time or swap it for something of equal value. Other digital coins, such as Ether, NEO, and DASH, can be used in different ways than just as a form of money. For example, Ether (ETH) is used for transactions on the Ethereum network. It is needed to send a token and fund the mining costs.

Digital coin uses

Token are not digital coins. Tokens are created on existing blockchains. The most common blockchain token platform is Ethereum and tokens from this platform are known as ERC-20 tokens.There are also other tokens such as NEO, Waves, Lisk, and Stratis. NEO uses tokens known as NEP-5 tokens.

Tokens

Creating a token takes little technical ability, but it requires the developer to spend some native coins to the blockchain on which the token is being created. For example, a creator will need to spend some Ether to create a token on Ethereum. This is used to get the miners to validate the token transaction.

How tokens are created

Most tokens are used with decentralised applications (dApps). When developers create their tokens, they can be used to activate features of the application they were designed for. Some tokens are created to represent a physical thing. If you want to sell your house using a smart contract, you can't physically put your house into the smart contract, but you can use a token that represents your house. For example, WePower (WPR) uses a token that represents electricity. Users can buy and sell electricity on the blockchain using smart contracts.

The purpose of tokens

Tokens are used to interact with decentralised applications that are built on top of different blockchains. For example, Civic (CVC) is an application that keeps track of encrypted identities on the Ethereum blockchain. If you were to go on a foreign holiday, you'd need to confirm your identity repeatedly along the way, such as the airline, hotel, etc. If they are a partner of Civic, they can quickly identify you at various points. The CVC token is used for the transaction.

Understanding how tokens work

<ul><li>Security Tokens. Most tokens issued by Initial Coin Offerings (ICO) are security tokens. This is because the buyer invests their money in the ICO expecting a profit.</li><li>Equity Tokens. It represents some stock or equity in the company that issues it.</li><li>Utility Tokens are also known as application tokens. They are used to give people access to either a product or service. They are rare as most tokens are expected to gain in value.</li><li>Payment Tokens only serves to pay for goods and services.</li></ul>

Security Token, Equity Token, or Utility Token

People who are new to cryptocurrency often confuse the term "token" and "coin". This guide defines the two terms and provides some examples for a better understanding.

Token vs Coin: learn the token and coin definitions & the differences between security token, utility token & equity token in this Token vs Coin guide.

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Understanding the Different Types of NFTs

How to create an NFT — and why you may not want to

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Token vs Coin: What's the Difference?

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to upgrade
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