- In 2015, Spells of Genesis became the first blockchain-based game that heavily relied on NFT.
- Music NFT is a distinct digital asset issued on a blockchain network or system linked to an individual song, EP, album or video clip.
- Ethereum co-founder Vitalik Butein inspired the concept of Soulbound tokens.
According to Moores’s law, technology will consistently improve every two years. The exact duration might not be as accurate, but its fundamental principle is sound and applicable. For instance, the web3 ecosystem ushered in a new way of thinking for most industries. Since the development of the crypto coin, NFTs and blockchain-based companies, it has consistently branched out, revealing additional capabilities. This article will focus mainly on the various NFT types that have applied the immutable functionalities of the first NFT into other industries. These categories of NFT have significantly expanded how we apply the concept and have gained much attention within 2023. They include; Sports NFTs, Music NFTs and Soulbound tokens.
We have, however, purposely left out Gaming NFT but have added several links from previous articles.
The age of NFT types
Initially, NFT was the first significant branch that developed right after the success of cryptocurrency. Initially, the success of crypto heavily obscured the notion of NFT, but one man saw its potential beyond currency. Kevin McCoy, the father of all NFT types, developed the first functioning NFT Quantum in 2014.
At the time, Kevin was among the first to attain “true” digital ownership, an out-of-reach concept for Web2. Unfortunately, many merely saw it as a by-product of most exchanges. This later on pre-Ethereum blockchains launched their versions of NFTs. For instance, in 2015, Spells of Genesis became the first blockchain-based game that heavily relied on NFT. The following year Rare Pepes came out, marking the kickstart of the first very crypto art market.
The application and vision of one man appeared as a small stream branching from the main river of the Web3 ecosystem. Fortunately, the practicability of such ingenuity led to the boom of NFT in 2017. The widespread adoption of NFT led to the development of marketplaces dedicated purely to sustaining the several categories of NFT at the time.
The wave of new artists and developers led to the creation of OpenSea, one of the largest NFT marketplaces. In 2021, NFT marketplaces increased from $82 million in 2020 to $17 billion. The sheer volume of its rapid growth outpaced even cryptocurrency. Today countries such as Nigeria, Kenya and South Africa contain major NFT artists with national and global recognition.
Soon enough, innovators and entrepreneurs saw the potential of claiming ownership of digital assets. This led to multiple developers branching into other industries. In fact, in Africa, the concept of NFT has ushered in a new form of identification. Sierra Leon proved the practicability of NFT-based voting and identification systems.
Furthermore, other industries such as gaming, sports, music and even the food industry adopted NFT. This created a ripple effect expanding the various categories of NFT to more complex and practical uses.
The upcoming NFT types in 2023
Today multiple types of NFT have showcased how flexible ts technology is. In previous articles, we highlighted several categories of NFTs that applied within the food and gaming industry. This article will primarily focus on the fastest-growing types of NFTs within the past two years.
Music NFT features at the top of the category due to its rapid growth rate within the web3 ecosystem. It is one of the newest applications of NFT have has already gained much applicability. In a nutshell, music NFT is a distinct digital asset issued on a blockchain network or system linked to an individual song, EP, album or video clip. Another primary reason for its appearance is its vast application. The merger between the Music Industry and the Web3 ecosystem encompasses numerous sectors in which we apply NFT.
Music NFTs can encompass several things aside from representing the audio. Artists can use Music NFTs to represent concert tickets, exclusive merchandise, or even virtual experience. Music NFT also heavily simplifies the supply chain management of any music organization.
This category of NFTs directly shifts ownership of the music from the companies to individuals. This not only reduces the cost for the companies but also increases the pay of most Artists. As a result, within the last year, more artists have shifted to blockchain-based music organizations offering such perks. With the rise of most NFT marketplaces, music NFTs have solidified their position.
Currently, the top five web3 ecosystems that have offering Music NFT are:
Sports NFTs are also an uprising concept for most artists. The junction between the Web3 ecosystem and the sports industry has survived harsh times and remained strong. The idea of sports encompasses a wide array of activities, a majority of which have an ample market.
For instance, in 2022, the global sports industry attained a value of over $500 billion. As a result, the NBA and football franchises have significantly adopted Sports NFT. Essentially they fall under a unique type of NFT that offer fans a more flexible way of collecting cards and memorabilia.
With Sports NFT, traditional trading cards and momentos have gained a digital platform. In addition, Sports NFT can also offer additional perks to its users. For instance, several organizations have offered exclusive meet-and-greet opportunities to users with specific Sports NFTs.
This, not only opens up an opportunity for fans to meet their sports idols but also provides a means for such organizations to earn. Companies such as Rarible, NBA Top Shot and Autograph as some of the NFT marketplaces that heavily distribute Sports NFTs.
Due to the widespread love for spots and the use of NFT, this particular type of NFT has managed to remain afloat even within the trying ies of the Web3 ecosystem. Top platforms such as The Ferrari &Villas Sports Club, the Fanzone Sports Club and the Hockey Heroes, are among the few organizations that demonstrate just how valuable Sports NFTs are.
Ethereum co-founder Vitalik Butein inspired the concept of Soulbound tokens. The idea behind this type of NFT derives its origins from the online fantasy game World of Warcraft’s “soulbound items.” They were digital items that cannot be sold or bought by anyone.
From this uncanny resemblance to NFT, Buterin ushered in a new category of NFT, the Soulbound tokens. Essentially this type of NFT is a non-transferable and publicly verifiable digital identity token. According to the May 2022 Report, Buterin classified soulbound tokens as an NFT that would resent social identity in a decentralized society.
According to the documentation, accounts in a blockchain network will be called a Soul. It would issue individuals a self-certified token functioning like items on a resume. It would identify the specific accomplishments, credentials and previous affiliations.
The Soulbound tokens are an upcoming concept most crypto-based ushers are familiarizing themselves with. Furthermore, as the web3 ecosystem consistently advances, Soulbound tokens are the closest application of immutable identifiers within the ecosystem. Once fully launched, most, if not all blockchain-based organizations will turn to their applications.
It is important to note that Soulbound tokens cannot bring users any financial gain. However, it offers an advanced native security measure implemented on crypto wallets. This category of NFT showcases just how advanced the technology has become in less than a decade.
Music NFTs and Sports NFTs have gained many tractions due to their financial and social gain for artists, sports athletes and users. These two types of NFTs have survived the ongoing crypto winter. Furthermore, they have maintained their operation without little to no adjustments. The Soulbound tokens highlight the next evolution for the web3 ecosystem.
Despite this, it is significant to note that NFTs provide a wide array of useability. Most Metaverses and other decentralized applications heavily benefit from its use. It’s only a matter of an item before we enter a new age of NFT.