Types of NFTs
Owning art isn’t a foreign concept. NFTs have empowered artists from all over the world with an internet connection to have the ability to monetize their craft. NFTs allow the artists to access a global supply of customers as well as art investors. NFTs can be listed on a number of permissionless online marketplaces such as Rarible, SuperRare, OpenSea, Nifty Gateway, and Foundation.
A few notable NFT sales in recent history by an artist Beeple - Ocean Front ($6m), Crossroad ($6.6m), and Everydays: the First 5000 Days ($69.3m). All of these examples showcase the power ERC721 tokens have in establishing cryptographic proof of unique digital property combined with global distribution and accessibility.
In game NFTs have given rise to a concept coined “Play-to-earn,” although it has been around for over a decade in the gaming world. As of recent, companies such as Axie Infiinity have built in-game economies where players earn rewards in the form of tokens in exchange for game play. Given the openness and crossplatform capabilities of NFTs, in-game assets are no longer constricted to one game. They can live and breathe in an outside economy and provide value to the owner of the asset.
This type of NFT is probably the most well known. Popularized by CryptoPunk avatars and Bored Ape Yacht Club (BAYC). The PFP NFTs represent an allegiance to a community, a group of like minded invidviduals working towards a unified mission.
NFTs increasingly are representing real-world assets such as real estate. The tokenization of income producing assets allow for a more efficient distribution. People on the internet can gather via a DAO and collectively deploy capital at scale and own real-world assets. The real-world assets are not limited to real-estate, they can include sports teams, businesses, foundations, and etc.
As with art, NFTs have given music artist a new model of ownership and distribution. Once again tapping into the fervor of community ownership and empowerment. An artist can invigorate a community of fans and allow them to listen, own, and distribute the content they love.
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