What is an NFT? – Confusion to Clarity

Millions of people are searching about nft everyday. I may guess that you are hearing some news on the daily basis about nft like this The Merge has been sold for $91.8Million, The First 5000 Days for $69 Million, Clock for $52.74 Million.

Human One for $28.9 M and many more. But you are still confuse what it is. What is nft? Why everyone is mad for some kind of cartoons. So this is a blog to answer all your questions about nft & give clarity about the nft.

What Is a Non-Fungible Token (NFT)?

Non-fungible tokens, commonly known as NFTs, are unique cryptographic tokens that exist on a blockchain and cannot be replicated—having a unique identification code and metadata.

Now at this moment, I can guess you didn’t get the point what nft is.

Let’s understand in this more simple way...

An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.

Difference Between NFT & Crypto

There are many differences between nft & crypto. The big difference is that the value of cryptocurrency is purely economic — its value comes from its utility as a currency or an investment. NFTs, on the other hand, have both economic and non-economic value. Artists, for example, can use NFTs to distribute, monetize and even autograph their work — work that some investor or collector might then buy using cryptocurrency.

Origin of Non-Fungible Token (NFT)

As it is said that story is the best medium to understand anything. So we are sharing to you ” The story of one of the most buzz topic NFT”.

Let’s start…..

• Worlds first NFT

The first known “NFT”, Quantum was created by Kevin McCoy and Anil Dash in May 2014. It consists of a video clip made by McCoy’s wife, Jennifer. McCoy registered the video on the Namecoin blockchain and sold it to Dash for $4, during a live presentation for the Seven on Seven conference at the New Museum in New York City. McCoy and Dash referred to the technology as “monetized graphics”.

This explicitly linked a non-fungible, tradable blockchain marker to a work of art, via on-chain metadata (enabled by Namecoin). This is in contrast to the multi-unit, fungible, metadata-less “colored coins” of other blockchains and Counterparty.

• The First NFT project

In October 2015, the first NFT project, Etheria, was launched and demonstrated at DEVCON 1 in London, Ethereum’s first developer conference, three months after the launch of the Ethereum blockchain.

Most of Etheria’s 457 purchasable and tradable hexagonal tiles went unsold for more than five years until March 13, 2021, when renewed interest in NFTs sparked a buying frenzy. Within 24 hours, all tiles of the current version and a prior version, each hardcoded to 1 ETH (US$0.43 at the time of launch), were sold for a total of US$1.4 million.

• Entry of the term “NFT”

The term “NFT” only achieved wider usage with the ERC-721 standard, first proposed in 2017 via the Ethereum GitHub, following the launch of various NFT projects that year. The standard coincided with the launch of several NFT projects, including Curio Cards, CryptoPunks (a project to trade unique cartoon characters, released by the American studio Larva Labs on the Ethereum blockchain), and rare Pepe trading cards.

• Cryptokitties

The 2017 online game CryptoKitties was made profitable by selling tradable cat NFTs, and its success brought public attention to NFTs.

The NFT market experienced rapid growth during 2020, with its value tripling to US$250 million. In the first three months of 2021, more than US$200 million were spent on NFTs.

• Trademark of NFTs

In 2020, the U.S Patent and Trademark Office received three trademark applications for NFTs. In 2021, the number of trademark applications jumped to more than 1200. In January 2022, the U.S. Patent and Trademark Office received 450 NFT-related trademark applications.

The growing list of brands being trademarked for NFTs includes the NYSE, Star Trek, Panera, Walmart, Elvis Presley, Sports Illustrated, Ticketmaster, and Yahoo. In the early months of 2021, interest in NFTs increased after a number of high-profile sales and art auctions.

So this was the story of NFT. Now at this moment I would suggest you don’t make any conclusion about NFTs. Please complete the blog.

NFTs Current Status

If we see NFTs current status as a market point of view we can see the data that is given below…

In May 2022, The Wall Street Journal reported that the NFT market was “collapsing”. Daily sales of NFT tokens had declined 92% from September 2021, and the number of active wallets in the NFT market fell 88% from November 2021. While rising interest rates had impacted risky bets across the financial markets, the Journal said “NFTs are among the most speculative.”

Future of Non-Fungible Token (NFT)

There are lots of people who says nft market will grow in future. And there is also lots of people, they says nft market will collapse very badly in the future. But if we think about nft as of Digital art point of view, there is no doubt that new age artists are doing fabulous job. And from this stand point we can say it’s new possibility of enhancing individuals creativity.

Let’s wait & see…

Thank you readers!! If you have any questions related to this blog you can send us an email on the given email id. We would love to answer your questions.

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