What are the Different Types of NFT
https://medium.com/@CedarBNPL/what-are-the-different-types-of-nft-b270752e9e05
Explaining the benefits of NFT utilities
TL;DR
By classifying the mainstream NFTs, we observe that NFT has already gone beyond art/collectables. More and more NFT projects start to empower NFT diverse utilities to bring a better usage experience to the buyers. During the bear market, those NFT projects which are 100% consist of speculation will disappear and those NFTs with a good story, utility and community can live long.
Cedar aims to:
Help NFT lovers access the NFT they want with a lower barrier
Help high-quality NFT projects to expand their community
We classify the NFTs on the market according to their utilities:
Art
The forms of Art have been constantly transforming in the last decades. It is coming to the digital world now. For artists and buyers, there are common concerns about publicity, affordable Cost, and Resell.
NFT is addressing these risks. Despite Instagram and Twitter, OpenSea is another platform for artists to list their NFT artworks and to gain exposure from the public. Additionally, one of the biggest questions when buying art is whether the price is affordable to the buyer. With the creation of NFTs, it allows buyers to give an offer or buy at a listing price through the smart contract. Generally, reselling artwork on the primary market is taboo, but with NFT artwork, this is not a concern. NFT also brings additional benefits in addition to addressing these concerns.
Despite the initial income from the primary sales, NFTs allow artists to receive customisable and continuous royalties for all secondary sales on their artworks — forever.
(First row: Murakami Flowers Seeds, Destiny, Right-click and Save As Guy; Second row: Art Blocks Curated, Hashmask, LetsWalk, Mekaverse)
PFP
PFP is an abbreviation for ‘picture for proof’ or commonly known as a profile picture. NFT PFPs as of now are only commonly used within Twitter. Other social media platforms are planning to adopt NFT PFPs into their application. As of now the primary concerts for NFT PFPs are what if someone copies their profile picture. This is not a problem, Twitter will verify the NFT profile picture and if valid the user will gain a hexagonal outline. This makes it stand out from the rounded (invalid) and enables users to show off the NFTs. In addition to allowing the user to show off, it also allows users to become community members, DAO developers, and early investors for a project with huge potential. Additionally, the owners of the PFP may also gain the opportunity to gain access to games or other products that the community decides to create.
(First row: CryptoPunks, Meebits; Second row: Bored Ape Yacht Club, Mutant Ape Yacht Club)
Virtual Land
NFT virtual land is an ownable area of digital land on a metaverse platform. These pieces of land are similar to Minecraft where the user has the freedom to be creative, except the digital land is completely the users, unlike Minecraft where Microsoft owns users’ creations. When having digital land completely owned by the users the user gains many benefits such as being able to use the NFT land for advertising, socializing, gaming, and work, among other use cases.
1. Advertising: If the user’s plot is in a popular area or district and attracts many visitors, users can charge for advertising space.
2. Socializing: Users can host events on their digital land, including concerts, conferences, and community meetups.
3. Gaming: User’s NFT land also has the opportunity to be used in an NFT video game.
4. Work: Land that can be explored with a 3D avatar can be used as a virtual office space or to provide digital services.
(First row: Decentraland, Sandbox; Second row: NFT Worlds, Worldwide Webb)
Game
NFT represents digital assets such as avatars, game equipment and game cards in crypto games. NFTs in gaming can unlock and add value to gameplay already experienced. These NFT games are a place where the users' time and effort are given real-world value. To show how popular NFT games have become, up to a million Philippines played NFT games daily, which generated more money than their salary during the pandemic period. With the rise in popularity of NFT games, the variety also has increased greatly from games like Axie Infinity(inspired by Pokemon Go) to StepN (an innovative game for fitness).
Membership
The word ‘Membership’ has existed in Web2.0 for a long time. However, users’ privacy, data handling and ownership remain to be the key problems. Membership NFTs can potentially transform the membership experience by solving the mentioned problems. To begin with, we don’t have to remember a bunch of passwords for various platforms but only one seed phrase. In addition, connecting our wallet to the smart contract on the back end allows us to access multifarious functionality. Finally, we are eligible to resell the membership on the secondary market for profit. Some membership NFTs allows users to track the hottest projects, access a private calendar feed and designate a minting wallet.
(PROOF Collective, PREMINT Collector Pass)
Social
By owning a social NFT, it gives holders the benefits including joining online and in-person social gatherings. As NFTs become more popular, social networks are planning to use NFT as a medium of choice. A successful social NFT project requires influential personnel along with his active community. VeeFriends NFT was created by Gary Vaynerchuk, who is an influential YouTuber and entrepreneur. By owning a VeeFriend NFT, owners immediately become part of the VeeFriends community and get access to VeeCon. The different VeeFriends’ NFT holders can participate in different social events held by Gary Vaynerchuk.
(VeeFriends, VeeFriends Series 2, VeeCon Tickets)
Music
The fast-growing ecosystem in the music NFTs is also noticeable. Fan rewards and royalties are two significant differences between Web2.0 and Web3.0 musical collectables. Many platforms aim to create a more collaborative music marketplace or streaming platform. Despite the ownership of the music NFT, sound.xyz also grants the holders to make a public comment on the song. Alternatively, artists are able to fractionize their music up to 4 levels of scarcities on Pianity, making the unique edition more valuable. As for royalties, platforms such as Royal.io and Rocki.com allows collectors to invest in streaming royalties in the form of NFT. In other words, the income generated by streaming will be split according to the royalties and is claimable for NFT holders.
(First row: sound.xyz; Second row: royal.io, pianity.com)
Brand
NFT’s boom caused Brands to rush into the NFT area because of the potential of NFT as digital assets in the future. Among these brands, Adidas and Nike are the top players. Nike entered the NFT space by acquiring RTFKT which is a digital sneaker asset company for the metaverse as mentioned in our previous article (The top 11 moments in the NFT chronicle). They use the latest in-game engines and NFT technology to create one of a kind sneakers and digital artifacts.
RTFKT designed lots of cool 3D Nike shoe NFTs which allow owners to “wear” and show that on social media such as “Snapchat”.
On the other side, Adidas launched their own NFTs by working with Bored Ape Yacht Club. The interesting utilities of Adidas NFT are that the Adidas NFT owners can not only access the digital Adidas metaverse land but also claim the physical Adidas products such as tracksuits, hoodies and beanies.
(Adidas Originals: Into the Metaverse, RTFKT x Nike Dunk Genesis CRYPTOKICKS)
Domain
In Web2.0, a traditional account is not owned by users themself. For example, Twitter owns all account information and is authorized to recall or delete accounts at any time.
Domain NFT is a blockchain-based, open-source decentralized account system. ENS domain name enables users to create a human-readable wallet address and link it to the original wallet address.
Domains NFT can be used in the following scenarios:
Transfer Tokens/NFT/Message with domain
Human-readable username in different DApps
Spread sub-accounts to community members
Show Web3.0 data in Web2.0 platform if connect with a domain.
(ENS: Ethereum Name Service, Unstoppable Domain)
Defi
On Uniswap V3, liquidity provider (LP) positions are represented as NFTs (ERC-721 tokens) as opposed to the fungible ERC-20 tokens on Uniswap V1 and V2.
Based on a pool and parameters selected on the liquidity providing interface, a unique NFT will be minted representing the position in the specific pool. The Uniswap NFT shows the most important information about your liquidity position including pair symbols, the selected free tier, the token symbols and the pool’s address. The NFT owner can modify, redeem and even sell the position in Uniswap V3.
About Cedar
Cedar will help these NFT communities build and expand by supporting their NFT enthusiasts who can’t afford it. Cedar is building a Buy NFT pay later protocol, which can truly help these NFT enthusiasts enjoy both the appreciation and utility of the NFTs. It gives the right of non-wealthy people to join in those high-quality NFT projects and avoid the excessive concentration of wealth.
Official Website: ced.ar
Official Twitter: @CedarBNPL
Official Discord: discord.gg/cedar