Types of NFTs You Need to Know: From Art to Real Estate

Non-fungible tokens (NFTs) have transformed the digital world, providing groundbreaking methods to buy, sell, and authenticate ownership of distinct assets through blockchain technology. The growing excitement around NFTs can be attributed to their expanding presence across a wide range of industries.

Although NFTs initially gained attention in the world of digital art, their potential has since expanded to a wide range of industries, including gaming, music, virtual real estate, and much more. In this article, readers will discover the key types of NFTs and explore how they’re reshaping various sectors and providing fresh opportunities for creators, investors, and consumers.

Let’s begin!

An NFT is a digital asset that represents ownership of a unique item or set of rights on a blockchain. Each NFT is verified on the blockchain, ensuring its authenticity.

NFTs go beyond physical assets like art and collectibles. They can represent digital rights, roles within communities, or unique access to services. For example, NFTs in projects like the Ape Collection serve as digital identities, granting membership or privileges within exclusive groups.

Unlike cryptocurrencies, where each token is the same and can be exchanged for another, NFTs are one-of-a-kind and cannot be substituted. For instance, if you borrow $100 from a friend and return a different bill, the transaction works because the currency is fungible. Cryptocurrencies operate the same way. However, if you borrow a signed photo of your favorite actor and later return a signed photo of someone else, the value of the two would be different. 

This illustrates how NFTs function, as each one has its own distinct digital signature, which makes it irreplaceable.

Even if you’re planning to create your own NFT tokens, it’s important to understand the standards. Most dApps are built on Ethereum, among other blockchain platforms. Ethereum platform that offers a variety of features and standards. But why are these standards necessary? 

For instance, if you want to create NFTs for a game and sell them on OpenSea (the popular NFT marketplace), your tokens need to adhere to certain standards. This guarantees their compatibility with the game, other in-game assets, and the platform as a whole.

ERC, or Ethereum Request for Comments, is essentially a set of guidelines or a "white paper" that defines methods, innovations, research, and features for users within the Ethereum ecosystem. Let’s consider the list of NFTs main standards.

ERC-721
The pioneering NFT standard on Ethereum, ERC-721, enables the creation of distinct, non-fungible tokens. Each token has unique data and ownership, often used for virtual goods, digital art, and collectibles.

ERC-721A
An improved version of ERC-721, ERC-721A, cuts down on gas fees when minting multiple NFTs at once. It's ideal for large-scale projects, such as generative art or series of collectibles, by making the minting process more efficient.

ERC-1155
A versatile standard that supports both fungible and NFT tokens within a single contract. ERC-1155 is particularly effective for managing diverse assets like in-game items and allows for batch transfers, reducing transaction costs.

ERC-7765
Focused on improving cross-platform compatibility, ERC-7765 facilitates the easy transfer and usage of NFTs across different blockchains and decentralized applications (dApps).

ERC-6551 (Token Bound Accounts)
This groundbreaking standard gives NFTs their own on-chain wallets, allowing them to hold other digital assets, such as tokens or NFTs, and engage in decentralized finance (DeFi) activities.

ERC-721R
A newer proposal, ERC-721R, introduces the ability for different NFTs to be burned or permanently removed from circulation, offering creators and owners more control over the asset’s lifecycle.

ERC-1726
Designed for gaming ecosystems, ERC-1726 makes it easier to manage in-game assets, enabling features like upgrades or customizations directly through the NFT itself.

These standards enhance the flexibility, functionality, and security of NFTs, allowing them to be applied across a wide range of industries, from gaming and art to real estate and beyond. 

Beyond Ethereum, multiple blockchains have introduced their own NFT standards:

Binance Smart Chain (BEP-721)
Binance Smart Chain utilizes the BEP-721 standard, similar to Ethereum’s ERC-721, enabling the creation of unique tokens. It’s known for faster transactions and lower fees compared to Ethereum.

Solana (SPL NFTs)
Solana uses the SPL standard for NFTs, offering high-speed processing and low transaction costs. It’s become a popular choice for rapidly growing NFT projects, especially in gaming and collectibles.

Tezos (FA2)
Tezos features the FA2 standard, which is known for its flexibility and low energy consumption. It’s especially favored in eco-friendly NFT projects, such as digital art and gaming.

Polygon (ERC-721 and ERC-1155)
Polygon, a layer-2 solution for Ethereum, supports both ERC-721 and ERC-1155 NFT standards. It offers quicker transactions and lower fees, making it a go-to for creators seeking Ethereum compatibility with added scalability.

Cardano (ERC-721-based)
Cardano, while still expanding its NFT capabilities, has adopted an ERC-721-based standard, focusing on secure, scalable, and energy-efficient transactions for digital assets.

These alternative blockchain standards offer different benefits, from lower fees and faster speeds to improved scalability, giving creators and users more options for NFT development. Now, let’s consider the main field where NFT use has gained popularity. 

So, what is an example of NFT? Below, you will discover the main NFT types of these tokens with examples of an NFT of each of them.

From art and collectibles to gaming and virtual real estate, NFTs have changed the way how creators, collectors, and investors interact with the digital world. In this section, we will explore the different types of NFTs and showcase NFT examples from different sectors.

NFTs have transformed the art and collectibles industries by providing a novel method for confirming ownership, authenticity, and rarity of digital items.

Non-fungible tokens enable artists to digitize their creations, establishing ownership and authenticity via blockchain technology. Artists can mint unique tokens for their digital creations, which can be bought, sold, and traded on platforms like OpenSea, Rarible, or KnownOrigin. 
Iconic NFT art examples include Beeple's "Everydays: The First 5000 Days" which fetched an astonishing $69 million at a Christie's auction. Another NFT example is the CryptoPunks collection, a series of 10,000 unique digital characters.

As established artists and celebrities enter the NFT space, the demand for art NFTs continues to grow.

1. XCOPY
XCOPY, a digital artist from London, is known for his glitch-filled, dystopian art that tackles themes of death and technology, making a significant impact within the NFT community with his dark character NFTs, compelling pieces.

2. Trevor Jones
Trevor Jones merges traditional painting with digital elements to create captivating NFT art, often drawing inspiration from pop culture and iconic figures, making his work relatable and widely admired.

3. Hackatao
The artist duo Hackatao produces detailed and thought-provoking NFTs that explore issues like technology, humanity, and environmental challenges, adding depth and significance to their digital creations.

4. Grimes
As a musician and visual artist, Grimes blends music, surreal visuals, and storytelling in her unique NFT collections, offering immersive and otherworldly experiences that have garnered a loyal following.

5. SlimeSunday (Mike Parisella)
SlimeSunday is renowned for his provocative, often controversial digital art, pushing boundaries and challenging traditional artistic norms in the NFT world.

6. Blake Kathryn
Blake Kathryn, a 3D artist, is celebrated for her vibrant, futuristic landscapes and ethereal characters, establishing herself as an up-and-coming star in the digital art space.

NFTs have also changed the collectibles market, especially with digital trading cards and limited-edition items. Platforms like NBA Top Shot, which features officially licensed NBA highlights, and CryptoKitties, a game centered around collecting, breeding, and trading virtual cats, exemplify how NFTs are reshaping the collectibles market. The blockchain guarantees the authenticity and rarity of collectibles, offering a new form of ownership for collectors.

Such NFTs provide artists with innovative ways to distribute and monetize their work.

These digital assets enable musicians to tokenize everything from songs and albums to concert tickets and exclusive content, giving them greater control over how their work is sold and shared. Fans can purchase, own, and even trade these NFTs. This creates additional opportunities for collectors and creators.

One of the core advantages of music NFTs is the ability to offer exclusive content and limited editions. Artists can release rare versions of tracks or albums, creating scarcity in a way that traditional streaming platforms cannot. Many music NFTs also include additional perks, such as VIP access to concerts, special merchandise, or behind-the-scenes content, adding further value for fans.

1. Kings of Leon
This band made history by launching their album When You See Yourself as an NFT, offering limited edition artwork, exclusive bonuses, and VIP concert tickets for fans.

2. 3LAU
Sold his album as NFTs, providing buyers with personalized experiences, exclusive content, and the opportunity to own unique rights tied to the music.

3. Snoop Dogg
A major advocate for NFTs in music, Snoop Dogg has released multiple NFT collections, including exclusive tracks, artwork, and experiences, and is actively involved in the NFT community.

4. Eminem
He released his own NFT collection that included digital art, exclusive music, and autographed items, marking his entrance into the NFT space with a highly anticipated drop.

These tokens are transforming the gaming world by enabling players to have real ownership of in-game assets, allowing them to trade, sell, and collect one-of-a-kind digital items.

These NFTs can represent various elements of a game, such as characters, weapons, skins, land, and entire virtual worlds, allowing players to have verifiable ownership of items that are not bound to a specific platform. Through blockchain technology, NFTs give players the ability to engage in decentralized markets where they can exchange their in-game assets freely.

Gaming NFTs also create new economic models within games, allowing players to earn, trade, and sell rare items or achievements. This concept has led to the rise of "play-to-earn" (P2E) games, for example, Telegram games. There, players can obtain real-world value thanks to their in-game activities, making gaming a potential revenue stream.

1. Axie Infinity
A popular play-to-earn game where players collect and battle creatures called Axies. Each Axie is an NFT that can be traded, and rare Axies have sold for significant sums, creating a virtual economy.

2. Decentraland
A virtual world where players can purchase, trade the parts, and build on virtual land, all represented as NFTs. It allows users to develop and monetize their own digital spaces, with land ownership being a valuable asset.

3. The Sandbox
It is one of the top examples of NFT games. decentralized gaming platform that allows players to design and profit from virtual experiences. Players can purchase and sell land and other assets as NFTs, allowing for a fully user-driven economy.

Virtual real estate NFTs represent ownership of digital properties and land within virtual worlds,  also known as the metaverse.

These NFTs are blockchain-based assets that allow users to buy, trade, and craft virtual land. Ownership is verified on the blockchain, offering proof of authenticity and security. Just like physical property, the value of virtual real estate can rise over time, influenced by factors such as location and demand.

Two major platforms for virtual real estate are Decentraland and The Sandbox, built on the Ethereum blockchain:

• Decentraland: Users can purchase and build on virtual land, creating experiences such as art galleries, stores, or events. The platform offers a marketplace where users can purchase and sell online assets.
• The Sandbox: This platform focuses on user-generated content, allowing players to buy land and create custom avatars, items, and experiences. The Sandbox encourages a strong community-driven economy where players can gain profit from their creations.

Both platforms are shaping the metaverse, where virtual properties are becoming valuable assets for creative and business ventures.

These non-fungible tokens offer a great decentralized alternative to traditional domain registration. 

Such domains represent ownership of a website or domain on the blockchain. They are unique, allowing users to buy, sell, and transfer them directly without relying on centralized authorities. Domain name NFTs can serve as both digital identities and website addresses, providing users with full ownership and control.

Unlike traditional domains, which are leased from centralized providers, domain name NFTs grant permanent ownership. Users have complete control, and ownership is secured on the blockchain, lowering the risk of theft, fraud, or suspension. These domains also offer added security and can be easily transferred or traded.

Several platforms specialize in domain name NFTs, including:

• 1. Unstoppable Domains: Offers blockchain-based domains like .crypto and .zil, which can be used for websites, wallets, and digital profiles.
• 2. Handshake: A decentralized protocol that lets users buy and sell top-level domain names (TLDs) as NFTs, providing true ownership independent of traditional domain systems.
• 3. Ethereum Name Service (ENS): Focuses on .eth domains for the Ethereum ecosystem, linking domain names to Ethereum wallets and simplifying transactions.

The NFTs provide holders with special privileges, offering access to exclusive content, members-only events, or unique experiences. 

These ticketing NFTs act as digital passes, unlocking benefits like private concerts, exclusive webinars, limited releases, or VIP events. By holding these NFTs, users gain access to premium offerings that are typically reserved for a select group, making them highly desirable in the digital world.

Utility NFTs have become an innovative tool for brands and creators to enhance customer engagement and loyalty. They offer more than just digital ownership; they serve as access points to exclusive rewards, early product releases, or members-only content. These NFTs are also integrated into marketing campaigns, often used to promote limited-edition products or incentivize customer interaction, such as attending events or making purchases. 

Through utility NFTs, brands can offer tiered access to content or special privileges, creating a sense of scarcity and exclusivity. These NFTs can be used to reward customers for specific actions or as part of loyalty programs, helping brands connect with their audiences in novel ways.

Several companies and creators have effectively used utility NFTs in their campaigns:

1. Nike and RTFKT
It is one great example of NFT utility projects. Nike's acquisition of RTFKT, a digital sneaker brand, introduced limited-edition NFT sneakers that provide access to both virtual and physical perks, blending the digital and physical worlds for an enhanced consumer experience.

2. Gary Vaynerchuk's VeeFriends
Gary Vaynerchuk (American speaker and internet influencer) launched VeeFriends. It is a great NFT example of a collection of non-fungible tokens that serve as access passes to exclusive events, including conferences and seminars. This combination of collectible art and access has been a successful way to build a loyal community.

3. Bored Ape Yacht Club (BAYC)
BAYC has made a name for itself by offering NFT holders entry to private events, exclusive parties, and community benefits. The sense of belonging and privilege associated with owning a Bored Ape has created a thriving ecosystem of collectors.

As a trusted blockchain development firm, we are committed to delivering advanced solutions for businesses and creators in the ever-growing NFT market. Our team can help you with NFT token creation, NFT marketplace development, and launching security token offerings (STOs). Turn to us if you need expert assistance with any other Web3 development services. We also offer customized blockchain solutions tailored to your specific needs, ensuring your project is innovative and secure.

A recent example of our expertise is a non-custodial multi-currency cryptocurrency wallet project we completed. The client’s initial request was for a wallet that could support both EVM (Ethereum Virtual Machine) and non-EVM networks, complete with seamless cross-chain swap functionality.

After evaluating the provided design, our team identified areas for improvement and worked to refine the wallet’s user interface and overall functionality. We managed the entire development process, integrating essential third-party services and improving both security and user experience.

Our approach focused on optimizing the wallet's performance, ensuring smooth cryptocurrency transactions, and achieving compatibility with multiple networks. We also concentrated on refining the user interface to make it visually engaging and intuitive to use. 

Utilizing technologies like Laravel, Node.js, and React Native, we developed a highly efficient backend and ensured a seamless experience across both iOS and Android platforms. In the end, we delivered a robust multi-currency crypto wallet that was both secure and easy to use.

Outcomes achieved:

• Created a non-custodial, multi-currency cryptocurrency wallet
• Integrated seamless cross-chain swap functionality
• Ensured top-tier security with KYC/AML compliance and biometric authentication
• Enabled multi-wallet support within a single user account
• Optimized the wallet’s performance for speed and responsiveness

Partner with us to kickstart your next project with our expert blockchain development team!

Now, we have to consider what NFT is, which types exist, and discover top example of NFTs.

From revolutionizing art and gaming to transforming virtual real estate and domain names, NFTs are continuously evolving and unlocking innovative ways to interact with digital assets. As the space grows, more cutting-edge use cases are emerging, making NFTs a key area of interest for the future.

If you’re looking for quality blockchain development services to enter the world of NFTs with a top project, the Peiko team is here to help. Whether it’s NFT token development, marketplace creation, or any other blockchain solution, we have the expertise to bring your vision to life. Contact us today, and let's start building your NFT project!