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Sujit Kumar
Dec 1, 2022
by Sujit Kumar

3 Types of NFTs You Should Be Familiar With

Types of NFTs

Table of contents

  1. 1. Digital and Physical Works of Art
  2. 2. Social Media Avatars
  3. 3. Collectibles of All Kinds
  4. And That’s Just the Beginning!
Doesn’t it seem as though everywhere you turn you are seeing that acronym, NFT, in everything but neon lights? However, that day is probably coming! Do you know what NFT even stands for and how they are used? Perhaps the easiest way to explain those three letters you keep seeing would be to say that they are an acronym for non-fungible tokens, NFT. They are, in the most basic sense, digital proof of ownership. They can be attached to any underlying asset in either the digital or physical world and they are absolute proof of ownership that is immutable. While ownership can be transferred from person to person or organization to organization, there can only be one verifiable owner at a time.

1. Digital and Physical Works of Art

NFT art has exploded in recent months. In fact, there are so many digital works of art that are selling for what equates to millions of dollars in US fiat that there really is an amazing amount of money to earn in trading NFT works of art. To get an idea of just how popular an NFT marketplace truly is, check out OKX.com where you can buy, sell or create your own NFT works of art.

2. Social Media Avatars

Who doesn’t want a unique social media avatar? They are fun to see on our friends’ pages and even more fun if we create our own NFT avatar that someone wants to buy. If the price is right, sell it! You can always go back to that NFT creation tool mentioned above to make yourself a new one. If you get good at it, you might even be able to set yourself up in business creating social media avatars.

3. Collectibles of All Kinds

While you would think of collectibles as such things as baseball cards, thimbles (yes, we said thimbles!), Hummel figurines or even the gun that killed Lincoln, NFTs actually fall into the realm of being collectibles as well. For each of these objects, a non-fungible token is created and is recorded in ledgers on a global network of computers. Unless someone has access to your private key and two-factor authentication, there is no way to fraudulently steal ownership.

They work much like certificates of ownership but exist only in the digital realm. Consider for just a moment what this would have meant back in the day when those Cabbage Patch Kids were all the rage. Each came with a birth certificate authenticating their date of ‘birth.’ These dolls are worth a small fortune today, if the birth certificate is intact, but what if the child lost it or destroyed it along the way? Wouldn’t an NFT have been wonderful had they been developed then? Even so, this is just one illustration as to how NFTs correspond to an underlying asset.

And That’s Just the Beginning!

An NFT can be created for anything from original pieces of music to real estate holdings. Proof of ownership is indisputable and as such, is the safest way to ensure cyber theft or fraud doesn’t leave you in a position to duke it out in court. Actually, you should become familiar with all types of NFTs, but these three will get you headed in the right direction.

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Types of NFTs
3 Types of NFTs You Should Be Familiar With
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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