The initials NFTs stand for Non Fungible Tokens, which are non-replicable digital assets. NFTs have become popular, attracting artists and brands. Artists such as Beeple, XCopy, and Edward Snowden have made mind-boggling amounts by trading their NFTs. Brands and celebrities have joined the bandwagon using digital art and collectibles to connect and engage their audiences. Here, we dive deep into the History of NFT and the types of digital artwork in the market.
What are Non Fungible Tokens?
One can easily copy digital content and share it online. However, it’s impossible to perform the same act to an NFT. In other words, Non Fungible Tokens are unique existing as one-of-a-kind. Here are the main features of Non Fungible Tokens:
- Rarity: Each NFT is unique and has distinct qualities captured on the token’s description.
- Scarcity: NFTs exist in limited numbers with a certificate of ownership available in various decentralized environments. The certificate of ownership lets users know the owners of the digital assets.
- Indivisibility: you can only distribute an NFT as a whole unit, as it’s impossible to subdivide the digital item.
- Ownership: NFTs are regulated by owners and safeguarded through secret keys. Furthermore, the tokens aren’t prone to any server hitches. Owners are free to share their collections with other accounts.
- Interoperability: Non Fungible Tokens are shareable across different decentralized networks. This feature is especially crucial when sharing in-game items.
The History of NFT
NFTs have become famous and are at the forefront of reorganizing the metaverse world. The concept of NFT emerged in 2014 when Kevin McCoy developed a digital asset on Namecoin. Many other NFTs, like Spells of Genesis and Rare Pepes, appeared in the market in the subsequent years. However, these initial projects didn’t capture and remained largely dormant.
NFTs started attracting attention in 2017, with the Ethereum network seeing many collections. Ethereum simplified the process of creating, storing, transferring, and selling NFTs. The network’s digital agreements disrupted the NFT sector by automating the process.
Among the initial Ethereum-based NFTs was CryptoPunks. The collections became popular within no time and attracted massive sales.
In 2021, the demand for digital art increased. This happened because of the pandemic and the high interest in digital collections. As a result of the pandemic, many people became virtually native. They interacted via various platforms, such as Clubhouse and Twitter. These are the channels where many NFT fans hang out.
Beeple was the second artist to trade his NFT with Christie’s auction house. His ‘Everydays-The First 5000 Days’ artwork attracted $69 million. The colossal amount further fuelled the popularity of NFTs. For example, Edward Snowden’s work attracted $5 million, while Cryptopunks #7523 was sold at $11 million.
Although virtual art and collectibles fundamentally fuelled the market in 2021, there was also an extra application of Non Fungible Tokens that became popular. There arose NFT-based digital worlds and digital games based on Non Fungible Tokens. Popular metaverses like Decentraland and CryptoVoxels are now famous NFT-based digital worlds. Games like Axie Infinity also use the concept of NFTs.
The adoption rate of NFTs is high as popular brands like Adidas, Gucci, and Coca-Cola join the market.
Types of Non-Fungible Tokens
The popularity of NFTs cuts across multiple sectors; there are numerous applications and possibilities of what one can do with digital art. Here are the major categories of Non-Fungible Tokens:
1. PFPs and Avatars
PFP stands for profile picture, a generative avatar associated with many NFT projects. PFPs exist as a collection, although some artists create 1/1 or limited edition projects. The first The History of NFT avatars starts with CryptoPunks, a group of 10,000 PFPs. The avatars come as a collection of different PFPs, each with unique attributes. Here are the Top NFTs under the PFP category:
Larva Labs launched the CryptoPunks project in 2017. The project is unique because it was the first to appear on the Ethereum network. It comprises zombies, persons, and gorillas.
Bored Ape Yacht Club
The BAYC project is another popular PFP comprising 10,000 NFTs. Although the project had a sluggish beginning, its demand increased over the months. It became one of the best digital collections in the NFT sector.
Doodles is an NFT project by Evan Keast, Scott Martin, and Jordan Castro. The project features 10,000 generative digital pieces, each with unique traits.
2. One-of-one (1/1)
These are Non-Fungible Tokens that were created as a single issue. This means that a one-of-one NFT project has a single certificate and can be owned by one person at any given time. Popular 1/1 NFT projects have high value because of their uniqueness.
3. Generative art
Computer algorithms or real robots develop generative art. The emergence of NFTs has exploded the demand for generative art, and many projects have come to the limelight. Notable projects in this category include Art Blocks and Braindrops.
Anything can be transformed into a digital collectible. For example, you can change your audio file into a virtual collectible. Collectibles derive their uniqueness from the certificate of ownership that exists as a non-fungible token. Some unique collectibles include domain names, artwork, and music. NBA Top Shot stands out as one of the popular collectibles.
5. Gamified digital collections
The game field NFTs allow gamers to possess in-game items, such as armory, skins, virtual accessories, and digital plots, in the metaverse. Axie Infinity and Gods Unchained are some Top NFTs in the gaming category.
Photography has become a famous NFT category, attracting top-notch photographers like Julie Pacino and J.N. Silva. Photography NFTs can check various parameters, such as possession and rarity. Also, creators can receive rewards for their efforts.
For far too long, music has been a reproducible element as it can be recorded and sold as cassettes, records, and other multimedia. Consequently, artists lack decent payment for their works. Thanks to NFTs, things are now changing as musicians are assured of proper compensation.
What is the future of NFT development?
With multiple use cases, the future of NFT development looks bright. It’s now possible to conduct transactions in the metaverse thanks to the NFTs. Furthermore, you can easily prove that you own an asset through a digital certificate. Also, businesses and artists can use NFTs to engage their followers in the virtual world.
You can only reap the fruits of NFTs if you understand how to create your digital art and mint it on a decentralized network. If you lack time or skills, it is better to hire an experienced Non-Fungible Tokens development agency.
Non-Fungible Tokens use blockchain technology that provides accurate ownership information. Also, NFTs are limited, boosting their rarity and value. There are various categories of NFTs, and creators are free to focus on the class they’re passionate about. Here, we’ve explored the history and the types of NFTs available in the market.