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What are NFT’s and why have they become so popular?
NFT’s (Non-fungible tokens), one of the most exciting technologies ever invented. In recent years, (NFTs) have become increasingly popular in the world of digital art and collectibles. But what are NFTs and why have they become so popular?
NFTs are unique digital assets that are verified on blockchain network, which makes them scarce and gives them value. They have been used to sell everything from digital art to virtual real estate and even tweets. Everything can be tokenized through this technology.
The first NFTs were created in 2014 using the he Mastercoin protocol (now known as Omni), which was built on top of the Bitcoin blockchain, these NFTs were used to represent virtual assets in the online game CryptoCollectibles, but they didn’t gain widespread attention until 2017 when the Ethereum blockchain was used to mint the first NFTs back then. In 2017, the Ethereum blockchain was used to mint the first widely-recognized NFTs. This was made possible by the creation of the ERC-721 standard, which defined a set of rules for creating and managing NFTs on the Ethereum blockchain. More on ERC standards: https://medium.com/coinmonks/a-guide-to-ethereum-erc-token-standards-37a5e95a5893
The popularity of NFTs exploded in 2017 and 2018, with millions of dollars worth of NFTs being sold every month. This was driven in part by the success of the online game CryptoKitties, which allowed players to breed and trade virtual cats as NFTs.
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In recent years, the use of NFTs has continued to grow, with more and more artists, collectors, and investors buying and selling NFTs. In March 2021, a digital artwork by the artist Beeple sold for a record $69 million as an NFT, and other high-profile sales have also made headlines.
Since then, the use of NFTs has exploded, with millions of dollars worth of NFTs being sold every month.
So how do NFTs work? Essentially, they are stored on a blockchain, similar to how cryptocurrencies like are stored. They can be bought and sold using cryptocurrency, and their ownership can be easily verified using the blockchain. Lately their are platforms accepting more traditional methods of payment’s but this is highly centralized.
One of the key benefits of NFTs is the ability to prove ownership and authenticity. With a traditional digital asset, it can be difficult to prove that you are the rightful owner, as digital files can be easily copied and distributed. With an NFT, the ownership is verified on the blockchain, making it impossible to counterfeit.
NFTs have also gained popularity because of their potential for increased value over time. Just like traditional art or collectibles, NFTs can become more valuable as they become more scarce or in demand.
Examples of things that have been turned into NFTs include digital art, virtual real estate, and even tweets. In March 2021, a digital artwork by the artist Beeple sold for a record $69 million as an NFT. And in December 2017, a virtual plot of land in the online game CryptoKitties sold for nearly $60,000.
I cannot imagine a future world without every ticket being an NFT. This is because it offers great distribution potentials and easy access through blockchain. Every industry can be disrupted through this technology.
While NFTs have many benefits, they have also faced criticism. One of the main concern is their environmental impact, as the process of minting NFTs requires a significant amount of energy. There are also concerns about their potential for use as a means of speculative investment rather than as a way to support artists. Also there are many scams especially in markets like this where founders abandons their projects for quick profits.
Overall, personally, it’s clear that NFTs are here to stay and will likely continue to play a significant role in the art and collectibles world.
The real potentials will show up once time passes and only then will be able to tell what the future holds for NFTs, but one thing is certain: they have revolutionized the way we think about digital ownership and the value of digital assets.
What is your opinion on NFT’s? Feel free to write in the comments!
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