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312 days ago

The Different Types of NFTs


  • NFTs cater to a wide array of digital demands, from art to virtual real estate
  • They revolutionize digital ownership and empower creators through direct monetization
  • NFTs ensure verifiable authenticity and traceable origin
  • Gelato enhances NFT functionalities: automated workflows, dynamic attribute tuning using off-chain data, seamless royalty payouts, interactive time-sensitive challenges, enabling gas-free dApp transactions, and more, ensuring a seamless user experience
  • Discover numerous applications where NFTs utilize Gelato services

NFTs trace back to early innovations like Colored Coins and Counterparty, foundational blocks that led to groundbreaking projects such as CryptoPunks and CryptoKitties.These projects began the popularity of NFT profile pictures and digital collectibles, setting the foundation for the broad range of NFTs we see today, which encapsulate everything from digital art and music to virtual real estate and in-game assets.

NFTs have transformed our understanding of digital ownership and value. They have introduced a new way of looking at what we can buy and sell and what holds value. There's a wide variety of NFT types, each with unique aspects. And with the help of Gelato, their capabilities can be further enhanced.

Gaming NFTs

Gaming NFTs are a unique, blockchain-based digital asset tied to online gaming and the metaverse. They can represent various elements within a game, from in-game items and characters to skins, maps, and collectibles.

Benefits of Gaming NFTs

  • Ownership

Through NFTs, players have genuine ownership over their in-game assets, which aren't just for in-game use, as they can be traded, sold, or even displayed outside the game!

  • Interoperability

NFTs hint at a future where assets from one game could be used in another, breaking down barriers between different gaming universes.

  • Play-to-Earn

In play-to-earn games, players are rewarded with assets ranging from tokens to NFTs for their time, skill, and achievements. Unlike traditional "pay-to-win" games, where in-game progress often requires purchases, these games allow players to earn real-value assets by playing and showcasing their expertise. These assets, especially NFTs, can be traded or sold, offering a potential source of income for dedicated gamers.

  • Longevity

In the traditional gaming ecosystem, in-game items risk becoming obsolete if the game is discontinued. However, with NFTs, these digital assets can persist. They can be retained, sold, or even auctioned years later.

Domain names NFTs

Domain Name NFTs are unique digital identifiers stored on the blockchain, representing ownership and control over domain names in the web3 environment.

The holder has genuine ownership of the said domain, allowing it to be an alternative to their wallet address.

Benefits of Domain Name NFTs

  • Significance of Domain Name NFTs

Domain name NFTs serve as shortcuts to wallet addresses and are stored on the blockchain.

Unlike a traditional DNS which translates website addresses to IP addresses, domain names in web3 translate into wallet addresses. By owning a domain name NFT, users can have direct control over the data on their domain, unlike the centralized nature of web2 domains.

  • Ownership in NFT Domains

Traditional domains are governed by centralized entities, often only providing users with a lease, making them prone to censorship and seizures. NFT domains, built on decentralized networks, offer true ownership, making them resilient against censorship. These domains use unique top-level domains (TLDs) like .crypto or .nft and can host websites or act as crypto wallet addresses.

  • Ethereum Name Service (ENS) Overview

ENS, a decentralized naming system on the Ethereum blockchain, is a prominent player in the domain name NFT space. It provides flexible resolution of names to various identifiers and extends the functionality of traditional DNS for web3 resources.

Music NFTs

Music NFTs are unique digital assets on a blockchain, representing specific musical content such as songs or albums. It can be linked to individual songs, albums, or video clips.

This blockchain-based approach ensures the asset's authenticity and offers artists new avenues for monetization and direct engagement with their fans.

Benefits of Music NFTs

  • Direct Monetization and Empowerment for Artists

Traditional streaming services have become the go-to method for fans to engage with their favorite artists. However, the monetization model of streaming platforms often leaves artists with an unsustainable income. With Spotify paying artists between $0.003 and $0.0084 per stream, averaging at just $0.004, an artist would need a staggering 250,000 streams to earn just $1,000.

But Music NFTs provide artists with a platform to directly monetize their music, bypassing minimal returns from traditional streaming platforms and giving them greater control over their revenue streams.

  • Revolutionizing the Artist-Fan Relationship

Rather than being passive consumers, fans can become active stakeholders by purchasing a music NFT and directly supporting their favorite artists!

With the purchase of a music NFT, fans can potentially gain access to exclusive content, experiences, and even governance rights in certain creative decisions. This fosters community deepens loyalty, and establishes a two-way, collaborative relationship between the artist and their audience.


PFP NFTs, or profile picture NFTs, are digital collectibles that users can adopt as their unique profile pictures on social media, reflecting their online identities. They have gained immense popularity, with many being part of larger collections and often representing characters or personas.

Benefits of PFP NFTs

  • Origin of PFP NFTs

The journey of PFP NFTs began in 2017 with the creation of CryptoPunks from Larva Labs with a collection of 10,000 distinct 8-bit-style digital art pieces represented as NFTs. They use the ERC-20 token standard but were modified to be unique and non-fungible. This innovation paved the way for the development of the ERC-721 token standard. Fast forward to 2021, the Bored Ape Yacht Club (BAYC) emerged as a prominent PFP NFT project.

  • Utility Beyond Just Display

While the primary function of a PFP NFT is to serve as a profile picture, many projects are introducing broader utilities. Owners often become part of exclusive communities, have voting rights, and might gain access to real-world perks or virtual worlds, thereby offering more than just a digital image.

Additionally, possessing a rare PFP NFT can act as a status symbol within the crypto sphere, while other NFTs provide valuable rewards and versatile cross-platform functionality.

NFT Tickets

NFT tickets are unique digital tokens that represent ownership or access to an experience or event, such as concerts, sporting events, or theme parks. These tokens are secured on the blockchain, ensuring each ticket is distinct and authentic, thus redefining the conventional ticketing system.

Benefits of NFT Tickets

  • Unique NFT Experiences

Beyond just granting access, NFT tickets can offer holders exclusive experiences. Think backstage passes, merchandise, or even digital interactions that blend the event with the metaverse. This is a pivotal shift from traditional ticketing, which often ends at the event entrance.

  • NFT vs Traditional Ticketing

The current ticketing industry faces several challenges, including fraud, counterfeiting, and ticket scalping. Traditional ticketing systems often lack sufficient security measures, allowing for the creation of fake tickets and enabling scalpers to exploit high-demand events by reselling tickets at exorbitant prices.

NFT tickets offer a solution to these problems by leveraging blockchain technology, which ensures a transparent and immutable record of ownership. This makes it virtually impossible to create counterfeit tickets. Moreover, NFT tickets can incorporate customizable restrictions, such as limits on resale prices, to combat ticket scalping effectively.

Fractionalized NFTs

Fractional NFTs are a form of digital asset that allows multiple individuals to own a share of a single non-fungible token. This approach democratizes ownership, making high-value NFT assets more accessible and enhancing their liquidity in the market.

Benefits of Fractionalized NFTs

  • Price Discovery and Liquidity

The fractionalization of NFTs has significantly improved the ease of price discovery. Unique assets, whether they're singular artworks or individual NFTs, usually have illiquid markets given their rare nature and high value. By breaking these assets into fractional parts, their trading volume is amplified, making the process of determining the asset's true market value more transparent and efficient.

  • Real-world Applications of Fractional NFTs

Fractional NFTs are finding relevance beyond just digital art and collectibles. They're making waves in diverse sectors like real estate, traditional art, the burgeoning metaverse, and the gaming industry.

For example, a rare virtual land parcel in a popular metaverse could be divided into fractions, enabling multiple people to invest and collectively own the property. Fractional NFTs solve the issue of high prices in the NFT market, which often makes sought-after assets unaffordable for many potential buyers.

How Gelato Enhances NFT Functionality

  • Dynamic attributes and rarity adjustments

Gelato can enable dynamic adjustments to NFT attributes or rarity based on external factors or data, such as market trends or user preferences. This can be particularly useful for gamified NFTs and PFP NFTs, allowing creators to introduce unique and engaging experiences for their users. You can use Gelato Web3 Functions to fetch off-chain data and whenever your set condition is met then automatically NFT attributes will be changed.

  • Royalty distribution

Gelato can automate royalty distribution to artists, collaborators, or rights holders whenever an NFT is bought, sold, or traded. This ensures fair and efficient revenue sharing among stakeholders.

  • Time-sensitive events and challenges

Gelato can be used to create and automate time-sensitive events or challenges within the NFT ecosystem. This can be applied to various types of NFTs, such as gamified NFTs or NFT tickets, where users may need to complete tasks within a certain timeframe to earn rewards or access exclusive experiences.

  • Monitoring and alerts

Gelato can monitor various NFT-related events or changes, such as price fluctuations, auction activity, or domain expirations. This can enable automatic notifications or actions based on predefined conditions, enhancing the overall user experience and ensuring timely updates for NFT owners and interested parties.

About Gelato

Gelato is web3’s decentralized backend empowering builders to create augmented smart contracts that are automated, gasless & off-chain aware on all major EVM-compatible blockchains including Ethereum, Arbitrum, Polygon, Optimism, zkSync, and many more. Over 400+ web3 projects rely on Gelato for years to power the execution of millions of transactions across DeFi, NFT, and Gaming.

Gelato currently offers four services:

  • Web3 Functions: Connect your smart contracts to off-chain data & computation by running decentralized cloud functions.

  • Automate: Automate your smart contracts by executing transactions automatically in a reliable, developer-friendly & decentralized manner

  • Relay: Give your users access to reliable, robust, and scalable gasless transactions via a simple-to-use API

  • Gasless Wallet: A powerful SDK that enables developers to provide a world-class UX by combining Gelato Relay + Safe's Smart Contract Wallet, enabling Account Abstraction

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