Useful Background Information
NFT’s are a type of cryptographic token, but unlike cryptocurrencies that are primarily in the ERC-20 format, majority of NFT’s running on ERC-721 is not interchangeable. This means that the currencies are coded by unique identifiers that makes them different. An example might be the serial codes on the printed fiat currency that defines each bill that is different from the other even though the denomination is the same.
Classification of NFTs
NFTs can be classified into 3 main categories which has evolved in recent times, each category is built on the base layer of DLTs: 
- Distributed ledger based NFTS (DLTs) 
- Digitally native NFT
- NFT Metadata
1.The features of DLTs are that they are:
A. Immutable – Cryptography is created to create secure storage that cannot be altered in any manner.
B. Append Only – Ledgers only allow add on data and not modification to previous data.
C. Distributed – No single place of storage of data.
D. Shared – The ledger does not have a single entity. Data is shared throughout a network to record or process information
2. Digital Native NFTs, a variation of DLTs
- Digitally Native NFTs are generally assets that allow multiple people to have ownership rights to the same asset.
3. Metadata NFTs are an adaptation of DLTs. Currently, it is the most common type of NFT in the market. Its links are given to the person that purchased the NFT. However, does not acquire the ownership rights or copyrights of the NFT. Metadata NFTs are comparable to a more traditional transaction like a sale of an artwork whereby the piece of art is obtained by the buyer, without granting him/her the aforementioned. 
NFT Use Cases
Event tickets are basically NFTs that allows participants to take part in events in the metaverse mainly, where verification and authentication would pose less of a problem as compared to traditional checks.
Short clips, such as NBA Topshot also serves as a type of collectible, whereby fans around the globe are able to collect and hold onto specific game highlights by certain players.
One of the popular adaptations of a NFT is to have a customized domain name, powered by services such as Ethereum Name Service (ENS) or Unstoppable Domains. It translates user addresses of cryptographed wallets to simple and user-friendly addresses.
Cryptokitties got popularised in 2017, so much so that they congested the Ethereum network.
Think digital Picasso, except that it is traded with the usage of smart contracts.
While it is possible to link music files to cryptography, the distribution and royalties remain a hurdle for labels to cross. However, once the issues are ironed out, we do see huge potential growth of the scene as it addresses the concerns of piracy and intermediaries.
Real world assets could be minted as NFT to represent real world assets, as it provides proof of ownership.
In game items are one of the most common types of NFT currently. The future awaits in the gaming metaverse as it provides one of the most direct usage and storage value which is accepted by majority of gamers at large, which explains the surge of prices in Sandbox (SAND) and Decentraland (MANA) over the past month.
Valuation of NFTs
Many people ask about “How do I determine if an NFT (artwork/collectible) project is valuable and a good investment?”
Here are a few aspects to look out for:
- Real-world utilities
Which is one of the main driving forces at the moment. Such examples would be Play-to-Earn games, exclusive events, or even community givebacks.
- Team behind NFT projects.
You basically want to know who is the mastermind behind the project and to see if they can be trusted. A founder/team with a good track record or social standing would tend to have their collections perform better.
- Community (Hyped & active).
An engaging community that is excited and believes in the future of the project provides a safe haven for investors and collectors, which in turn assures their investors the value of their piece. The following are good evaluation metrics of an engaged community:
- Active interaction within social media community platforms (Discord, twitter, etc)
- Active participation from team members
- Active discussions about the project’s future/roadmaps and NFT utilities
- Regular updates on the progression of the project
- BONUS: Efforts to help NFT newbies understand the concept of NFTs and its terminologies.
It allows users to transfer their unique tokens to a platform that protects their assets, while creating an income stream, which has an annualised yield (APR) eventually given to the delegators (Staker). The level of staking would be determined by multiple factors, just very much so like normal cryptocurrencies, with the underlying theory of supply and demand. The process of staking is a 2-way win whereby it provides liquidity for the team for development and stakers gain APR
Scarcity Principle 
NFTs and the surrounding architecture
As NFTs are relatively new, there is no singular unified platform at the moment which owns the entire market. However, there are some noteworthy traits of each platform:
- OpenSea: The largest marketplace for Ethereum, but also offers listings for NFTs on the Polygon (MATIC) and Klaytn (KLAY) network. It is in fact the most widely used and accepted by most cryptocurrency investors.
- Magic Eden: A similar marketplace to Opensea, for Solana based NFTs
- NFTs Solana Arts: OpenSea equivalent for Solana related utility.
- MetaMask: It is a chrome-based crypto wallet for Ethereum transactions. This web linked wallet does not store your actual assets, but keys to your assets instead.
- Phantom: A metamask for the SOLANA network.
Alternate Coins that are not listed in exchanges yet
UniSwap: Most popular exchange platform for coins, especially new and unique tokens that have not been listed on majority of the Centralized Exchanges (CEX) yet.