Different Types of NFTs: How NFT Businesses Can Use it to be Successful?

You might have heard about NFTs. However, if you are a business owner, you might be confused about whether they are relevant to your business. It enables a business to prove ownership of store value. These can be non-tangible items such as virtual drawings, fine art, or physical ones like real estate.

If you’re a beginner, you might be confused about what NFT is, how you can buy it, and how it can help you succeed in the market.

To help you out, we have explained everything in this article; explore to know what NFT is, how it can help you succeed in business, and more right away.

What is an NFT?

A non-fungible token (NFT) is a virtual asset; it can be anything from artwork, videos, music, or another type of digital asset.

The NFT marketplace and value are speculative and are determined by the community of people who can collect and trade through it.

What Does Non-fungible Mean in NFTs Context?

Let’s explain the context with the example; money is fungible. Twenty-dollar bills can easily be exchanged for two bills of ten dollars as they have the same value. As stated above, NFTs are non-fungible.

For instance, the value of an NFT digital image can be increased or decreased depending on the market demand and other circumstances.

There is no equivalent value for the same; it’s unique and legally owned by the owner (one person).

How Do NFTs Work?

Business owners can easily buy and sell NFTs through cryptocurrency. Cryptocurrency is secured by cryptography, making it impossible to double-spend or counterfeit.

Known examples of this included Ethereum and Bitcoin. When NFTs are made, the process is known as “minting.”

When business owners mint an NFT, the original owner and identities of the NFT can be verified through blockchain ledgers.

A Blockchain is undoubtedly a secure digital transaction system that records data that makes it challenging to scam or hack.

For example, you can have a unique version of images. However, there might be lots of identical content, but the version you own is unique. This is quite similar to reproductions and original paintings.

There might be more than hundreds of identical images, but only one original one. Check the key takeaway to have a quick look over how NFTs work in detail.

• NFTs are cryptocurrency assets that are represented in digital form;
• Unlike Bitcoin, which is fungible, every NFT token is unique from others;
• This enables tangible and intangible assets to be tokenized;
• It’s in stark contrast to fungible tokens that are similar to cash;

The primary concept with NFTs is that you can easily invest in something of value without the need to store or own individual items physically. Buying and selling NFTs in an open marketplace makes it a breeze.

Different Types of NFTs You Can Choose to Invest in!

NFTs and Metaverse are two new concepts that have opened enormous opportunities for entrepreneurs globally.

However, you might have understood what NFTs are and how it works, but do you know how many types of NFTs are available in the market?

Now that we have clarified how NFTs work, we can explore the many different types of non-fungible digital assets in the market. To help you find various kinds of NFTs, we have listed the top ones below, along with examples.

Physical Real Estate

Undoubtedly business transactions have changed to a great extent in recent years due to modern technology like Cryptocurrency, Blockchain, and many others.

Lots of businesses are leveraging the power of NFTs and other technologies, and real estate is not an exceptional one.

Real estate is the most interesting aspect of the NFT marketplace, not because it covers virtual and physical property.

Physical real estate is the right example of an asset that can easily be represented by an NFT token. No properties are the same, which simply means that each condo or house is unique in its own right.

A fresh example of a traditional property selling in conjunction with an NFT took place in Florida. A home in Florida was sold as an NFT in a novel crypto transaction for $653,000; the amount was paid for with Ethereum.

This clearly explains that if NFT owners wish to sell their purchased property, this can be achieved through a wallet-to-wallet transaction.

The bigger use case for NFTs in this industry is part ownership. For example, the property development company is stepping forward to make a luxury hotel in North America.

The developers can turn to traditional financial institutions to raise capital to help fund the project. To open investment opportunities to retail customers, the company can represent ownership through NFTs.

Every NFT can be linked to a percentage of ownership, which can be traded on the open market.

Sporting Moments

One more growing space in the NFT marketplace is “sporting moments.” The majority of sporting brands like ATP, NBA, and more are selling ownership of video clips and more from key in-game events.

Looking at the market, many entrepreneurs are choosing to invest in a video streaming app like Netflix that helps them sell sports-related video clips, assets, and more with ease.

However, such platforms also make it easier for users to purchase the digital assets of their favorite sportsperson or team.

One of the best examples of the same is NFT tokens which are valued at $100,000. NBA star Zion Williamson generated great value for a clip of the player blocking a shot.

One more example is the Australian Open Apes into tennis NFTs. The event sold each item from its tournament in the NFTs form like a center court as well as the umpire’s chair.

The value of these sporting moment NFTs is rising continuously. Lots of sports athletes, stars, and other celebrity icons have backed NFT collections of other types as well.

Gaming NFTs

Few of the best NFT tokens in the market these days are related to gaming titles. There are lots of cases where such games are referred to as “play-to-earn” or P2E.

For example, the P2E Pirate X Pirate is a game based on pirates. The basic concept of releasing this game is to enable users to make their crew and earn digital tokens as they progress through the world that the game has provided.

To grab the chance to maximize earnings, players can purchase unique NFTs that represent virtual ships. A few examples of NFT play-to-earn spaces include the Sandbox, Axie Infinity, and Decentraland.

Game developers are incentivizing players to amuse themselves with their platforms through the tradable NFTs that can be minted when specific tasks are achieved.

Lots of crypto enthusiasts are searching for utility NFTs to invest in. If you’re the one, then you can consider the above types to invest in; it provides you with a great chance to grab lots of opportunities in the market to make money and achieve success.

Virtual Real Estate in the Metaverse

Metaverse and NFTs are often used in the same discussion; modern tech is changing everything in almost all sectors.

Be it marketing, real estate, or any other. For those who are unaware of the term metaverse, it’s a digital representation of the real world, and interest in this digital space is expected to increase in upcoming years.

One of the best examples of this is Decentraland, a 3D gaming world that enables players to purchase virtual land to build real estate.

Every piece of land is represented by a unique NFT token, which can later be sold in the open market.

Let’s explain this with a better example: In 2021, Axis Infinity, a plot of digital land, was sold at $2.3 million.

This heats up the race across the metaverse. Just after one month, the Sandbox platform sold virtual islands for over $4.3 million.

This clearly represents that virtual real estate NFTs now generate millions of dollars per sale; hence many are choosing to keep an eye on this marketplace.

CryptoPunks and Digital Collectables

If you’re in search of NFT tokens, you might have come across CryptoPunks. It represents a collection of about 10,000 digital characters, built-in 2007.

Every CryptoPunk backed by an NFT token is unique. However, each design character looks as if it was created in 1970; CryptoPunks are the most sought-after NFTs in the marketplace.

For example, CryptoPunk NFT was sold for 8,000 Ethereum tokens in 2022. At the time, it was correlated to the crypto-equivalent of $23 million, making it the most expensive NFT out there.

According to the CryptoPunks series, in 2017, Larva Labs was sold for $1,646. Cryptopunks have spurned thousands of NFT collectibles from entering the market; hence the space is getting oversaturated with each passing day.

Wrapping it Up

When you first hear about NFTs, it seems complicated. Moreover, it’s impossible to break into the market without research, creativity, and diligence; it’s more attainable than it looks.

There are lots of reasons why people want to invest in NFT tokens, from millionaires and celebrity NFT owners to regular retail investors.

Lots of market commentators strongly believe that the popularity of NFTs is set to increase more in the upcoming years.

Hence it’s a smart choice to invest in the NFT business as it can provide you with lots of perks that you haven’t imagined before.

About the Author!

Gaurav Kanabar serves as the Chief Technologist for Digital Content and Platforms at Luckymatrix. Alongside his role at Luckymatrix, Gaurav is CEO of Alphanso Technology PHP ticket system open-source development company helping entrepreneurs, independent artists, and more to grow their digital footprints. X/Twitter || Linkedin