Comprehensive Guide to NFT Categories

Abstract

• NFT stands for "non-fungible token", which is a unique digital asset that represents the ownership, authenticity and origin of a specific project or content on the blockchain.

• NFTs can be classified based on their use cases, interactivity, token standards, licensing and rights.

• The industry will also classify NFTs based on their rarity, underlying blockchain network, interoperability, and their creators.

• The NFT field is currently developing rapidly, and new use cases will emerge from time to time. As NFTs become more popular, more types of new NFTs may become available.

What is a non-fungible token (NFT)?

NFT stands for "Non-Fungible Token", which is a unique digital asset that represents the ownership or authenticity of a unique item or virtual commodity. Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible and have the same value, each NFT is unique.

NFT is created using blockchain technology, with Ethereum being the most common platform for its creation. They can be bought, sold and traded in various markets.

NFT is popular in various fields because it provides a new way for both creators and collectors to exchange and own digital content. These digital assets come in a wide variety of categories, including art, virtual real estate, game items, and collectibles.

Common classification methods of NFT

NFT can be classified according to various standards. Some common ways to classify NFTs include:

1. Classification by use case

The most common way to classify NFTs is based on their use cases, which include digital art, music, collectibles, games, and virtual real estate.

2. Classification by Token Standard

NFT can be classified according to the token standard in which it was created, such as ERC-721 or ERC-1155.

3. Classification by Platform or Blockchain

NFT can be classified according to the underlying blockchain network or the market where the NFT is created or listed.

4. Classification by interactivity

NFT can also be roughly classified according to its interactivity, including static presentation, highly dynamic and interactive digital collectibles.

The industry will also classify NFTs based on their rarity, interoperability and their creators. Let’s take a look at some of the most commonly used NFT classification methods in detail.

NFT Categories Based on Use Cases

Based on different use cases, NFT can be divided into many categories:

1. Personal Profile Avatar (PFP)

In 2017, with the advent of CryptoPunks created by Larva Labs, using NFT as profile avatar It became a trend for the first time. The Boring Ape Yacht Club (BAYC) is another widely recognized such collectible, which extends the utility of NFT far beyond PFP to include physical goods and offline club memberships.

2. Digital Art

This is one of the most popular NFT categories. It includes digital painting, illustration, animation and other forms of digital visual art. Artists can tokenize their digital art, thereby proving ownership. Digital art NFTs enable artists to monetize their work in new ways.

3. Music

Musicians can tokenize their music, albums and even exclusive behind-the-scenes content to create NFTs. This enables musicians to sell their work directly to fans, provide exclusive content, and earn royalties on secondary sales.

4. In-game items

In-game items are one of the most popular forms of game NFTs, including virtual assets such as weapons, armor, or other equipment that can be used in a specific game. For example, Decentraland wearables provide clothing or accessories that can be worn in Decentraland, the Ethereum-powered virtual world. These NFTs allow players to personalize their characters and enhance their gaming experience.

5. Virtual Real Estate

This category includes virtual land, properties and spaces in virtual worlds and metaverses. Users can buy, sell and trade virtual real estate in the form of NFTs.

6. Utility

Utility NFTs are associated with various services and goods, including both digital and physical forms. For example, utility NFTs can grant holders access to physical goods, special trading tools, ticketing services, exclusive online content, and memberships. The possibilities for utility NFTs are huge and can be freely customized by the creativity of the issuer.

In the rapidly expanding world of NFTs, many NFTs have a certain degree of utility and can bring innovative uses. For example, the gaming industry can benefit from utility NFTs by monetizing and distributing game content in novel ways and granting ownership and exclusivity to players.

7. Identity

Identity NFTs are specifically designed to represent and verify unique digital identities. They eliminate reliance on centralized authorities for identity verification, enhance user privacy, and give individuals more control over their personal data.

Other use case-based NFT categories include videos and movies, domain names, fashion, photography, literature and sports-related products. This list is only a small selection, as the NFT space is evolving rapidly and new use cases are emerging frequently.

NFT categories based on interactivity

NFTs can also be classified based on their interactivity, including static presentation, highly dynamic and interactive digital collectibles.

1. Static NFT

Static NFT represents digital assets with immutable characteristics, such as images, artworks and collectibles. These assets remain in their original form throughout their lifetime. CryptoPunks is a prominent example.

2. Dynamic NFTs

Dynamic NFTs are digital assets that exhibit mutable properties or change over time, often affected by external factors or data sources. Examples include Chainlink’s VRF NFT, which integrates verifiable randomness generation methods to enable programmatic properties; and the Ethereum world’s encrypted collectible creatures, which have evolutionary properties and will evolve based on the user’s interaction with them and a dynamic vary depending on the breeding system.

3. Interactive NFT

An interactive NFT is a digital asset designed to enable direct interaction with the asset or its properties, usually in a game or virtual environment. Examples include Axie Infinity’s collectible creatures, which can be fought and bred within the game’s ecosystem, and Decentraland’s virtual tiles, which owners can develop and customize to create immersive digital experiences.

NFT categories based on token standards

NFTs can also be classified by token standards.

1.ERC-721

ERC-721 is a widely adopted Ethereum token standard designed specifically for the creation of NFTs. This standard represents unique and scarce digital assets, enabling the secure ownership, transfer, and management of all forms of digital and physical items.

Examples of ERC-721 NFTs include Cryptokitties, a virtual collecting and breeding game where each CryptoKitty represents a digital cat with exclusive characteristics and visual appearance.

2.ERC-1155

ERC-1155 is an Ethereum token standard designed for the creation of NFTs and fungible tokens. ERC-1155 is able to support multiple token types in a single smart contract, so various digital assets can be managed efficiently. It simplifies transactions and reduces the complexity of deploying and managing multiple token standards.

Examples of ERC-1155 tokens include The Sandbox (SAND), a virtual world where users can create, own and profit from digital assets and gaming experiences.

3. Other Blockchains

In addition to Ethereum, many blockchains have adopted their own NFT standards to provide alternatives for innovative use cases or solve scalability and cost issues.

Some popular blockchains worth noting include Flow Blockchain, Binance Smart Chain, and Polkadot.

NFT categories based on rights and permissions

NFT can also be divided into several types based on different rights and permissions.

1. Open License

Open license NFT can grant its holders extensive rights and permissions, allowing them to display, copy, modify or redistribute the underlying digital assets under various circumstances. Key features include the ability to freely create derivative works, share with others, and reuse content on a variety of platforms without worrying about significant restrictions or copyright-related legal consequences.

Open licensing promotes a collaborative and co-creative approach, hoping to cultivate creativity within the NFT ecosystem. Examples include CryptoPunks and Bored Ape Yacht Club.

2. Closed License

Closed license imposes strict restrictions on the use, distribution and modification of NFT. Most of them will retain the rights of the original creator or copyright owner of the NFT, aiming to prevent unauthorized copying, commercial exploitation, or modification of the content without explicit permission.

Closed licenses are designed to protect intellectual property and maintain exclusive control over NFT rights, distribution and modifications. Dapper Labs’ NBA Top Shot is a well-known closed-licensed NFT project. The owners of the series can only trade within the ecosystem of the platform and cannot use them for commercial purposes.

3. Partial License

Partially licensed NFTs provide a balanced approach, granting specific rights and usage permissions to NFT holders while retaining certain exclusive rights of the original creator or copyright owner. Its main features include allowing limited use and distribution, granting licenses for specific commercial exploitation, or allowing certain types of modifications but prohibiting others.

Such licenses are designed to meet the various needs and preferences of creators and collectors, promoting collaboration without compromising original rights.

Conclusion

NFT has discovered groundbreaking applications in all walks of life, redefining digital ownership and value creation in the digital age. NFTs can be classified based on a number of factors, such as use case, interactivity, token standards, and licensing.

이러한 다양한 유형의 NFT는 창의적인 표현을 지속적으로 보호하고 디지털 소유권을 재정의할 수 있는 수많은 새로운 방법을 제공합니다. NFT의 끊임없이 변화하는 환경은 NFT의 혁신적인 잠재력을 드러내고 디지털 세계를 재편하는 데 있어 NFT가 갖고 있는 힘을 보여줍니다.

그러나 우리는 이 기술에 잠재적인 위험이 있으며 아직 초기 단계라는 점도 인식해야 합니다. 우리는 NFT의 기이한 세계를 계속 탐색하면서 NFT의 고유한 잠재력을 탐색하고 가능한 위험을 줄이기 위해 경계하고 주의해야 합니다.

The above is the detailed content of Comprehensive Guide to NFT Categories. For more information, please follow other related articles on the PHP Chinese website!