Understanding the different types of NFTs: Part Two

In Part One of Understanding the different types of NFTs we explained the use cases and benefits for some of the more widespread types of NFT. In Part Two, we’ll take a look at some of the lesser known or emerging types of NFTs.

Domain Name NFTs

Domain name NFTs offer unique digital addresses on decentralised networks. These NFTs serve as a representation of ownership and control over specific domain names on blockchain platforms. Domain name NFTs enable individuals and businesses to establish their online presence and secure valuable digital addresses. These tokens add a layer of scarcity and tradability to the domain name industry.

Utility NFTs

Utility NFTs provide access to certain services or exclusive benefits. For instance, a utility NFT could grant membership to a specific online community, access to a premium content library, or even provide voting rights for decentralised governance. These tokens enable creators and organisations to offer unique perks to their supporters and incentivize community engagement.

Rentable NFTs

Rentable NFTs introduce a new concept where digital assets can be temporarily leased or rented to other users. This innovative approach unlocks the potential of shared ownership and enables creators and collectors to monetise their NFTs on an ongoing basis. Rentable NFTs have applications across various industries, including art, virtual real estate, and virtual goods.

Time-Based NFTs

Time-Based NFTs introduce the concept of time as a critical element in the ownership experience. These tokens incorporate time-limited features, including countdowns, time-locked content, or limited-duration access.

Intellectual Property NFTs

Intellectual property NFTs enable creators to protect and monetise their intellectual creations, such as patents, trademarks, or copyrights. By tokenising intellectual property rights, creators can prove ownership, track the usage of their creations, and sell or license them in a transparent and secure manner.

Intelligent NFTs

Intelligent NFTs, also known as Smart NFTs, are tokens that incorporate programmable features or embedded intelligence. They go beyond traditional static digital assets by interacting with external data sources, executing smart contracts, and responding to real-world events.

Intelligent NFTs can also be programmed to execute actions based on specific conditions. This programmability and flexibility enable dynamic and interactive experiences for both creators and collectors, expanding the possibilities and functionality.

Fractional NFTs

Fractional NFTs allow for the division of ownership of a single NFT into multiple fractional shares. This means that multiple individuals can collectively own a portion of the NFT, with each fractional owner holding a percentage stake.

Fractional NFTs provide an opportunity for broader access to high-value assets and collectibles, as the cost of acquiring a fraction of an NFT is lower than purchasing the entire token. Fractional ownership also allows for shared benefits, such as proportional revenue from resale or shared decision-making.

Dynamic NFTs

Dynamic NFTs introduce the concept of NFTs that can change and evolve over time. Unlike traditional NFTs, which represent static assets, dynamic NFTs can be updated, modified, or influenced by external factors. This evolution allows for new possibilities in storytelling, gamification, and personalisation.

While the explanations covered here, and in Part One of Understanding different types of NFTs, provide a solid foundation for some of the best known and emerging types of NFTs, the space is constantly changing, with the use cases for NFTs expanding all the time.