The idea for nonfungible tokens originated in the early 2000s, when a pair of “creative technologists” came up with a unique way to generate crypto-currency. Using the Ethereum blockchain, they were able to create unique characters, limited to 10,000 per character. The project was called the Cryptopunks and quickly caught on. Its success led to the creation of the Ethereum Classic cryptocurrency.
The concept of NFT is not new. It is not unlike the Mona Lisa, a painting by Leonardo Da Vinci that’s kept in the Louvre Museum in Paris. It is regarded as a work of art, but it has been a popular investment option. Since it is so flexible, it’s easy to create NFTs for artwork, real estate, and other materials. The NFT is more like a license, not copyright.
Since its creation in 2012, NFTs have attracted high-profile collectors and affluent consumers. Snoop Dogg sells his own source code for $5.4 million, while professor George Church sold a pixelated octagon filled with different shapes, in a hypnotic way. Some artists have even started to use NFTs to sell their virtual cats. The popularity of NFTs has been such that the idea has reached the mainstream market.
What exactly is an NFT? An NFT is a piece of digital content that is linked to the blockchain, the digital database that powers cryptocurrencies. A fungible asset can be replaced with an identical one of the same value. A non-fungible asset cannot be interchanged with another of the same value. This makes them highly desirable for investors and consumers. However, this is not the case with NFTs, which are not only dumb but also highly sought-after.
As with many things in life, NFTs have become extremely popular. Today, it is difficult to find NFTs without knowing the history of the market. A single NFT can be worth $69 million, but in the past, it could be worth millions of dollars. Then, in 2021, there will be an even higher value. Currently, this type of cryptocurrency is a form of a crypto-currency, which means that it allows a creator to sell their work.
Today, NFTs are used for everything digital. For example, Sir Tim Berners-Lee’s source code for the World Wide Web was sold for $5.4 million, and an artist named George Church’s “high-resolution artistic representation” of DNA sequences sold for almost $1. Then, in October, Tom Brady’s NFT platform launched a music vertical, which led to the signing of The Weeknd.
The concept of the Colored Coin failed to take off, but its promise was too good to be ignored. With the NFTs, companies can easily use the cryptocurrency as a digital “deed” and make it usable in physical settings. For example, it can be used to store digital assets and resell them. And while NFTs are not yet the right choice for every application, they can be an excellent way to make an investment.
The concept of the Colored Coin was never realized, but it laid the foundation for further NFT experiments in the future. In March 2018, the CryptoPunks’ “Rare Pepe” launched a similar online game with NFTs. This was a huge success, with the first sale of a pixelated octagon for $1.4 million. The art piece is still one of the most expensive NFT collections ever.
The concept of NFTs is a new way to collect and trade items. Rather than allowing people to buy and sell them, NFTs have the same value as physical products. In fact, the Mona Lisa is considered an NFT, which is like an ownership certificate for a material. An NFT is a virtual version of a paper product. In contrast, a digital product is only valid when used with the actual product.
The NFT market grew by over 50% last year and is expected to double by 2021. The technology is already changing the art world. Read more about how NFTs can impact the future of the art world. You can also join the NFT community. You’ll be able to participate in the NFT community! The first tweet you make is an instant celebrity! And while it may be unrelated to the original work, it is still worth bragging about.