The word NFT can simply be pronounced as N-F-T or instead pluralized. NFTs are known as Non-fungible tokens.

What are Non-fungible tokens? Before diving straight into explaining what a non-fungible token is, be rest assured that in this article, you’ll get to know more about the types of Nfts, Nfts and their real-life cases, and platforms that you could navigate to get familiar with Nfts.



What are Non-fungible tokens(NFTs)?

Non-fungible tokens are tokens that are not mutually interchangeable but are built on different blockchains likewise the same way cryptocurrencies are built.


Here’s a better concept for the understanding of Nft; Let’s say you have a $100 note and a friend decides to exchange two $50 notes for your $100 dollar note. This can be made possible and accepted as they can both purchase the same amount of items. Hence, the value of the two $50 notes and the single $100 note is the same despite the fact that they may be differences in note denomination, issuance date, and even year of note circulation.


The key determinant of the two different sets of tokens depends on their value. This can likewise be possible when trading cryptocurrencies. Again, let’s say you have $50 worth of BTC(Bitcoin) and a friend exchanges his $50 worth of ETH(Ethereum) with you, this can be made possible as they both serve the same purpose hence what can be done with the BTC can likewise be done with the ETH.


But this is quite different from NFTs as there are non-fungible tokens, they possess an intrinsic value that makes it impossible to trade two NFTs the same way you’ll trade two cryptocurrencies. This is the underlying difference between fungibility and non-fungibility.

Non-fungible tokens serve different purposes and hence two NFTs are used for two different use cases. One might be created as an exclusive pass to an auditorium and the other can serve as a golden ticket to play with a major football star(just like that which was minted on the Binance marketplace).


This exclusiveness gives NFTs their major characteristic of rarity.



NFTs can then be created and crafted out of different concepts so as to serve different purposes. NFTs are hence of different types;



Types of NFTs

Nfts can be made of these different types ranging from so as to serve its sole function. They include;

  1. Arts.
  2. Music.
  3. Collectibles.
  4. Gaming.
  5. Sports.
  6. Metaverse.

ART

Since the introduction of Nfts, one of its main aims is to fetch and introduce digitalization. The concept whereby art can be used digitally can only be leveraged by creators. Creators range from artists to painters, and even photographers.

Through this type of NFT, these creators can easily mint their self-made art and list it on Nft marketplaces and hence make their sales. 

This type of art also includes digitalizing GIFs and Videos to make sales without the need for middlemen.


MUSIC

Music has received a higher level of adoption right from the point of fuji, down to blues and even dispersing to afro beats. Artists/ musicians can create Nfts exclusively for their audience/fanbase. These NFTs can be a pass to their shows or as well proof of participation in the shows of these musicians.




Collectibles 

Collectibles are known forms of Nfts that are not created single-handedly. Just as the name implies, they are created such that a particular Nft of the same structure can exist in different forms. Just like the popular CyberPunks, the 2D models of these Nfts all look alike although they might be differences in hair type, the color of skin, and even the color of face although there are similar structures in its creation.

This is how collectibles are made unique and Nft sellers can buy all of these in either groups or better still at once. Another popular example of Collectibles is the BAYCs and Bored Apes. 

Gaming


Traditional models of games have been improved such that users can now play blockchain-related games simply known as play-to-earn games(P2E). These P2E games are built with a structure such that users are incentivized to play these games.

Asides from the incentivization, the use of NFTs is introduced into these games such that users can be rewarded with NFTs as they scale through the game.


This particular type of NFts is mostly used as even characters and avatars in these blockchain games.

Sports

Just the same way music has gained digital adoption. Sports-related NFTs are created and even made for athletes to build bonds with their fans as well as make these fans show support to their favorite athletes.

These Nfts can be used for participation in events, getting to meet with these athletes one-on-one as well as even competing against other fans through fantasy-based games.

A popular example is the 7 limited NFTs created by Binance for Cristiano Ronaldo’s fans such that when bought. Holders of these NFTs can get to meet with him and have a real-life training session with him.  

Metaverse


The Metaverse is a new iteration whereby real-world users are given virtual reality experience. This virtual reality experience works more like a physical experience where users can buy virtual clothes for their avatars, go shopping, and as well play games. Nfts can as well be created by certain metaverse structures such as Decentraland and SandBox to give users perks while using their platform.

Platforms where NFTs can be listed, bought, and sold. 

A platform where NFTs can be bought, listed, and sold are called NFT marketplaces. There are over 30 NFT marketplace and each has different networks on which they are built.

One of the key determinants when listing an NFT or having an interest in trading an NFT is looking at the blockchain it supports. Due to cases when it comes to minting, gas fees would be required. Take for instance an NFT marketplace that is built on the Ethereum blockchain, you’ll need higher gas fees compared to using a blockchain that supports Polygon or even Solana.

Asides from the gas fees issues, certain NFT marketplaces have a stronger transaction volume in sales compared to others hence, listing on this platform with a larger volume can increase your chances of your NFT getting sold. 

NFT MarketplaceBlockchain Supported
OpenSeaEthereum
RaribleEthereum
SuperRareEthereum
MakersPlaceEthereum
Nifty GatewayEthereum
SolanartSolana
Binance NFTBinance Smart Chain
ArtionFanthom
BlurEthereum

Talking about the real-life use cases of NFTs the types of NFTs are clear examples of how the use of NFTs can be applied to real life. In cases such as sports, you can get to play one on one with your favorite athlete. For static art, users can make photographs, mint their photographs and make sales and even in music, giving out VIPs to fans through these NFTs can be made possible. 

Different use cases can be made in the long run, more  NFT aggregators would be developed as well to facilitate the purchase process of NFT collectors as well. 

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