Non Fungible Tokens:
According to a report, the sales of Non-Fungible Tokens (NFTs) surged USD 25 billion in 2021 as the crypto asset exploded in popularity. However, some experts believe NFTs are a bubble that might pop.
- NFTs are Anything that can be converted into a digital form can be an NFT.
- Everything from drawings, photos, videos, GIFs, music, in-game items, selfies, and even a tweet can be turned into an NFT, which can then be traded online using cryptocurrency.
- If anyone converts its digital asset to an NFT, he/she will get proof of ownership, powered by Blockchain.
- There is a need for a cryptocurrency wallet and an NFT marketplace where one can buy and sell NFTs.
- Some of the NFT marketplaces are OpenSea.io, Rarible, Foundation.
- NFTs are different from other digital forms in that they are backed by Blockchain technology.
- NFTs can have only one owner at a time.
- Apart from exclusive ownership, NFT owners can also digitally sign their artwork and store specific information in their NFTs metadata.
- This will be only viewable to the individual who bought the NFT.
- Terra Nulius was the first NFT(started in 2015) on Ethereum Blockchain, although this project was merely an idea that only allowed to customise a short message which was then recorded on the blockchain.
- Then came Curio Cards, CryptoPunks and CryptoCats in 2017, before NFTS slowly moved into public awareness, then expanding into mainstream adoption in early 2021.