Evolved just a few years ago, non-fungible tokens or commonly referred to as NFTs are one of today’s ultra-modern innovations in the field of technology. These digital tokens are now booming around the world and have given rise to a whole new and lucrative industry. From passionate collectors all over the world to those who think it is the next big thing, everyone is rapidly taking interest in it and try to make the most out of this unique opportunity. For those who have no idea about it, the real deal is to find out what these NFTs are, where they came from, and what they mean in today’s world?
Let Us Define Non-Fungible Tokens (NFTs)
Non-Fungible Tokens or NFTs are unique units of data that are based on a digital ledger, commonly known as Blockchain. Each of these tokens is inimitable and can never be interchanged. Therefore, they tend to have unimaginable values. They are created as a result of blockchains string records of a cryptographic hash.
The purpose of these tokens is to reflect the real owner of the object in the case and represent it as Proof of Ownership. Non-fungible tokens are made through the same technology used for making cryptocurrencies like Bitcoins. From videos, music albums, and paintings to all other sorts of digital artifacts, NFTs cover this and much more.
Within a few years, NFTs have bombarded the entire world and people from every corner are eager to take full advantage of this technology. According to the current industry insights, it has evolved into a multi-million industry.
How NFTs Came into Existence?
It was May 2014 when Kevin McCoy and Anil Dash first non-fungible token. It was the first-ever attempt to link a series of blockchain hash with a real piece of artwork. It was a real tradable blockchain marker that stunned the entire world. Right after a year, a final version of NFT named Etheria was revealed.
After three months, 457 purchasable Etheria NFTs were presented in the first developer conference where all of them were sold for a total of $1.4 million. For a few more years, the industry kept on thriving along with improvements and advancements. It was 2017 when Blockchain started gaining fame and considerable public awareness emerged.
Since then, it took the world by storm and millions of dollars have been spent on unique digital artworks. From NBA highlights and music albums to digitally created paintings and other pieces of art, everything has been purchased as a non-fungible token. It clearly shows that those who love to collect objects have already owned several unique artifacts in the world.
Today’s Buying Surge in Non-Fungible Tokens
The year 2021 marks real-time demand for NFTs all over the world. People from all over the world have rapidly started taking interest in this new era of technology. Along with that, digital artists have found a new way to not only gain respect but earn unimaginable amounts of money.
It was March 2021, when a renowned American digital artist Beeple presented an artwork titled ‘Everydays: The First 5000 Days’ in Christie’s auction house and sold it for a staggering $69.3 million. Within a few days, Jack Dorsey, the founder of Twitter came up with his first-ever tweet and sold it for $2.5 million. And that’s how the surge started which is still on a never-ending journey.
Yes, there are no doubts that the market is way speculative but it is also one of the core reasons due to which investors from all over the world can trade at greater rates and volumes. The total NFT sales by the end of March 2021 totaled $220 million which was almost half of the overall sales being recorded since it NFTs were introduced.
Nowadays, everything from music and videos to costumes and paintings has considerable worth and a ‘Proof of Ownership’ that belongs to only a single person in the world. Today, investors and capitalists such as Mark Cuban, David Pakman, and many others are claiming the importance and growing demand for NFTs in the world.
Growing Concern and Criticism
So far, the industry has received some criticism as well. Some critics believe that the piece of art is just a link rot which is a phenomenon that disappoints when a link has been changed or moved to another address. It may happen because blockchain doesn’t store the image of the artwork but a token that functions as Proof of Ownership and points to a specific web link.
Next to this technicality, there is more related to mother nature and that’s all about the carbon footprint of these non-fungible tokens. As explained earlier in the post, NFTs are made through crypto mining which is the same process to create bitcoins. This gives rise to both increased consumption of energy and increased carbon emissions in the global environment. One of the recent examples that highlight severe criticism and resistance against this technology is the latest steps taken by the Chinese government.
The rising concern of greenhouse gas emissions has given rise to a huge debate all over the world. Along with that, it has also started to impact the industry to some extent but those who have a huge interest, are still satisfied and believe that it is just another effort to discriminate NFTs based on cryptocurrencies that are fungible tokens and noted to severely impact the global money market.
Strengths and Opportunities
Not only that there are threats and weaknesses but countless opportunities and strengths as well. Digital artists from all over the world have found a new way to make significant amounts of money while enjoying considerable fame and respect. It is a reality only if someone devotes true dedication towards bringing a unique and eye-catching piece of work to the world.
That was all about the untold story of this rapidly rising world of non-fungible tokens. If you think it is an opportunity of a lifetime then don’t wait anymore and start reaping the enviable benefits that are just a few steps away from you.
About the Writer
Salman Sabir is a writer and an NFT enthusiast from Pakistan who tirelessly promotes his knowledge and interests in the NFT market opportunity.