By classifying mainstream NFTs, we observe that NFTs have covered areas far beyond traditional artwork/collectibles. More and more NFT projects have begun to empower NFT’s diversified utilities and bring a better user experience to holders.During the bear market, those NFTs that are 100% formed by investors are basically completely cool, while those NFTs with stories, utility and communities can continue to develop for a long time.
We classify NFTs on the market according to their utility:
The art form has been constantly changing over the past few decades. It is now entering the digital world, moving from physical to online. For artists and buyers, there are general concerns about publicity costs, resale costs and risks such as circulation, and it is not easy to store collections – just like the recent case of “Mona Lisa” being damaged and maliciously throwing cakes.
The emergence of NFT minimizes these risks. After all, artists’ work can be well exposed online – aside from Instagram and Twitter, OpenSea is another major platform for artists to showcase their NFT work and gain public exposure. In addition, one of the biggest questions when buying art is whether the buyer has the threshold for high spending power on art. With the advent of NFTs, it allows buyers to offer or buy at the listed price through smart contracts.
And generally speaking, reselling art in the primary market is taboo, but for NFT art, this is not a headache. In addition to this, NFTs bring many additional benefits – such as: NFTs allow artists to receive royalties from all secondary sales of their artwork, regardless of how many times they are resold, despite the artist earning from the initial sale The royalty mechanism has always existed, giving incentives.
The art category covers a lot of fields. Anything can be considered art. So, this is why every NFT falls into one of the three categories mentioned above. Because if it doesn’t belong to the other two, it boils down to, “Someone, somewhere, thinks this looks cool and wants to buy it.”
The point is, people see something as a precious luxury. Others may not see them the same way. Everyone likes different things. Let people enjoy things. After all, it’s not your money. Therefore, many types of NFTs can be classified as art.
PFP is short for “profile picture”, or more commonly known as the avatar class. As of now, NFT PFP is only commonly used in a few applications such as Twitter, Discord, etc. Of course, many other social media platforms are also planning to adopt NFT PFP in their applications. At present, the main problem of NFT PFP is that the NFT PFP purchased by the holder can be copied, but obviously the product managers of most applications have considered this problem, such as: Twitter will verify the NFT profile picture, if it is valid, the user will get a hexagonal outline ; This enables users to distinguish whether the holder of the NFT PFP is a holder or not, and the holder also has capital that can be shown off.
In addition to allowing users to show satisfaction, it can also be used as a Pass-like function, allowing users to become community members, DAO developers, and early investors in a project with great potential. In addition, PFP owners may also have the opportunity to access games or other products created by the community, or obtain the ability to hold the same series of NFTs as a celebrity to get closer.
NFT virtual land is a digital land area that can be owned on the Metaverse platform. These lands are similar to Minecraft, where users can create freely, but the digital lands are completely owned by users, unlike Minecraft in which Microsoft owns the creations of users. When users can fully own this digital land, there are many benefits such as the ability to use NFT land for advertising, social, gaming and work, among other use cases.
It may sound vague, so let’s explain it briefly:
1. Advertising: If the user’s virtual land is located in the core (popular) area of the Metaverse and can attract many tourists, the user can charge for advertising space. Previously, users purchased land adjacent to the virtual land under Binance’s name and charged sky-high advertising fees.
2. Social: Users can hold events on their digital land, including concerts, conferences, and community gatherings, or users can build their desired application scenarios on their own land.
3. Games: The user’s NFT land also has the opportunity to be used in NFT games. Some games require users to hold land to participate, or users can create their own NFT games on their own land
4. Work: A land that can be explored with 3D avatars, can be used as a virtual office space, and can also provide digital services.
NFT stands for digital assets such as avatars, game equipment, and game cards in encrypted games. The appeal of NFT lies in its uniqueness, scarcity, provability of ownership, transferability, and indivisibility, which undoubtedly has great significance for enhancing the value of in-game items. It is worth mentioning that NFTs also embed metadata that can be used to prove the authenticity of assets.
In fact, the first application of NFT is also a game. When NFT games were most popular, as many as 1 million people in the Philippines played NFT games every day, and the income generated during this period even exceeded their wages, improving the employment crisis. With the popularity of NFT games, the variety of games has also increased greatly, and games or related applications in various modes from Axie Infinity (inspired by Pokemon Go) to StepN (Move to Earn) are increasing.
The word “membership” has been around for a long time in Web 2.0. However, user privacy, data handling and ownership remain key issues. Membership NFTs (Pass Cards) can potentially change the membership experience by addressing the above issues. First of all, we don’t have to remember a bunch of passwords for various platforms, but only need to remember a wallet mnemonic – after all, the verification logic of different platforms is to verify the NFT in the wallet by linking the wallet. Additionally, the smart contracts that connect our wallet to the backend allow us to access multiple functions. Finally, we can also be eligible to resell members on the secondary market for profit, which is much more convenient than traditional member resale. Some members also have access to features such as trending project tracking, Smart Money, resource communities, and more.
NFTs with social attributes can provide holders with many benefits, including participating in online and face-to-face social gatherings. As NFTs become more popular, many social networking applications are planning to use NFTs as a medium. A successful social NFT project requires an influencer ( Kol ) and his active community. Example: VeeFriends NFT was created by Gary Vaynerchuk, an influential YouTuber and entrepreneur. By owning a VeeFriend NFT, owners instantly become part of the VeeFriends community and gain access to VeeCon. NFT holders of different VeeFriends can participate in different social events organized by Gary Vaynerchuk.
and governance. NFTs can be used to open up artistic and business decisions to fans and customer groups, and are currently mostly used in the entertainment sector. For example, NFTs can be issued to fans who purchase NFTs to support theatrical performances in pre-production. In exchange for buying NFTs, all holders of the asset can get votes on things like the color of the protagonist’s t-shirt, the character’s name, and even the show’s title.
This is the future of fans. Fan bases have a say in the projects of their favorite creators. Just like someone built a Wang Xinling DAO a while ago, and the NFT issued was quickly robbed. The fun and applications will continue.
The rapidly growing ecosystem of music NFTs is also notable. Fan rewards and royalties are two significant differences between Web2.0 and Web3.0 music collections. Many platforms aim to create a more collaborative music marketplace or streaming platform. For example: despite ownership of music NFTs, sound.xyz also grants holders public comments on songs; artists can divide their music into 4 scarcity levels on Pianity, making unique releases more valuable. As for royalties, platforms like http://Royal.io and http://Rocki.com allow collectors to invest in streaming royalties in the form of NFTs. In other words, the revenue generated by streaming will be divided according to royalties, and NFT holders can get according to their holding ratio.
NFT has the potential as a future digital asset, and the popularity of this field has caused major brands to flock to the NFT field. Among these brands, Adidas and Nike are the standouts. Nike entered the NFT field by acquiring RTFKT (RTFKT is a Metaverse digital sneaker asset company), they use the latest game engine and NFT technology to create a digital sneaker, such as: RTFKT designed many cool 3D Nike shoes NFT, Owners are allowed to “wear” and display on social media like “Snapchat”.
Adidas, on the other hand, launched its own NFT through a partnership with BAYC. An interesting use for Adidas NFTs is that Adidas NFT owners can not only access the virtual world of digital Adidas, but also get physical Adidas products such as tracksuits, hoodies, and beanies.
NFTs can also be used for domain name services similar to .com domain names, but the difference is that domain name NFTs are based on decentralized technology. The Ethereum Name Service (ENS) maps human-readable names to machine-recognizable identifiers for blockchain and non-blockchain resources, such as Ethereum addresses. Simply put, ENS resolves the .eth domain name to an Ethereum address. ENS can make Ethereum addresses easier to remember, and ENS domain names can be bought and sold on the secondary market.
At the same time, blockchain applications can also be linked with domain names (such as: Mirror), and there will be other additional functions after linking the domain name.
On Uniswap V3, Liquidity Provider (LP) positions are represented as NFTs (non-fungible ERC-721 tokens) instead of the homogenized ERC-20 tokens on Uniswap V1 and V2.
Depending on the pool and parameters selected on the liquidity provision interface, a unique NFT can be minted representing a position in a specific pool. Uniswap NFT displays the most important information about a user’s liquidity position, including trading pairs, selected tiers, token symbols, and pool addresses. NFT owners can modify, redeem and even sell positions in Uniswap V3.
If we had the most detailed classification of NFTs, there might be dozens. Here we select the ten most representative categories at the current stage. Maybe looking back after a few cycles, NFT will have more classifications and applications that are unimaginable at the current stage.
Sometimes too much subjective emotion can stifle the imagination, so when I was working on this article, I also thought of a lot of possible use cases. These use cases that may appear in the future and their better forms will also be sorted out and shared with you on the official account/community.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/break-down-the-top-ten-categories-of-nfts-pfp-art-games/
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