NFTs have been gaining masses in popularity over the course of 2021 from CryptoPunks to BoredApes selling for crazy prices of up to $500 million, what are they and what do they do?
NFT stands for Non-Fungible Token, and this means that it is unique and cannot be replaced by something else. For example, it is like a one-of-a-kind trading card. They can be anything digital, such as art, music, videos, photos, gaming items and even tweets. They work by being part of a blockchain such as Ethereum or Solana for example. These blockchains allow for extra information to be stored in the shape of NFTs, which makes them work differently from their respective tokens eg ETH, SOL. Blockchain technology is used to establish the uniqueness and ownership of a piece of digital art, which is then sold via a platform.
NFTs are nothing new, in fact, they have been around since 2014. However, their popularity has skyrocketed during 2021 seeing over $2.5 billion sales in the first half of 2021 alone. Major brands such as McDonalds, Coca-Cola and Nike have all began to jump on the NFT bandwagon which is helping to exponentially grow the space.
NFTs give artists a way to sell work that there may not otherwise be much of a market for. Also, NFTs have a feature that you can enable that will pay you a percentage every time the NFT is sold or changes hands, making sure that if your work gets super popular and increases in value, you’ll see some of that benefit. One of the benefits of buying art is it lets you financially support artists you like and give a great opportunity to make investments into NFT projects that can give you a great return on your money.
In conclusion, NFTs have a huge range of possibilities for the future. These digital assets have a great capacity to represent real world items and can become game changers in the gaming, music, sports, and fashion industries. In the future, other platforms within the crypto space and the real world will begin to adopt and support NFTs as they continue to grow in popularity. They already provide considerable promise for the future as they give creators and users huge benefits that have never been seen before which is why NFTs will see more and more artists eagerly enter the sector.