Uprise of Non-Fungible Tokens (NFTs) and its impacts on the world.
Non-Fungible Tokens (NFTs) have been around since 2014. But they made it to the mainstream only in 2021, as a means to buy and sell digital artwork. Ever since NFTs have been selling like Dutch tulips during what came to be known as “tulip mania” in the 17th century—some of the NFTs were sold for millions of dollars!
If you are looking to make the best of the new-found popularity of NFTs, CoinSwitch can help you find the tokens you need to buy them. But before you get into any of that, it’s always a good idea to understand what’s happening and what’s driving the boom.
What is an NFT?
To start with, here’s a quick refresher on what an NFT is. NFTs are digital assets that represent real-world objects like art, music, gaming items, and videos. They are built on blockchains, encoded with the same underlying software as many other cryptos. Each NFT has unique identification codes and metadata to distinguish them from one another.
Popular NFT spaces responsible for the boom
A variety of factors have contributed to the rise of NFTs, including the connection with the metaverse and celebrities jumping on the NFT bandwagon. And NFT sales have soared, with many well-known ones raking in millions of dollars. The Bored Ape Yacht Club (BAYC), The Sandbox, and CryptoPunks are just a few of the projects that have revolutionized the NFT industry, both creatively and financially.
- BAYC is a collection of 10,000 Bored Ape NFTs on the Ethereum blockchain. Yuga Labs, the company behind the BAYC, has amassed $450 million in a fundraising round led by venture capital firm Andreessen Horowitz, bringing the value of the company up to $4 billion. According to the team, the money will go toward the metaverse project called the Otherside.
- Popularly known as the OG NFT collection, CryptoPunks is a collection of 10,000 algorithmically generated tokenized and pixelated art images. Standing strong at the forefront of the crypto art movement, this project has drawn a number of high-profile investors to the NFT space, and, in just four years, the value of one Punk has risen from practically nothing to several million dollars.
- Built on the Ethereum blockchain, The Sandbox offers a virtual world for players to build, own, and monetize their gaming experiences. The Sandbox allows players to upload, publish, and sell their NFT creations made with VoxEdit. It gives creators ownership and tools to create assets on the platform.
NFT trends that could change the world
Whether you are onboard the NFT bandwagon or not, some of these upcoming trends in this space have the potential to change the way we use the internet.
- Digital art collectibles: Any artist can broadcast their work or sell it directly to interested buyers through NFTs. This gives them the opportunity to get the right price for their art. Artists can also gain profits from royalty payments in NFTs through smart contracts.
- NFTs and the metaverse: The metaverse buzz is everywhere, even though they have not fully taken off. When metaverses do finally gather some more steam, though, NFTs will be at the heart of their immersive technology. And the exceeding potential and utility of NFTs, along with blockchain technology and cryptos, will be realized within them.
- Play-to-earn games: The gaming industry is already vibrant, and online gaming has given NFTs a new lease of life. With the two coming together, players can buy and own in-game assets, in the form of NFTs, in crypto-powered play-to-earn games. Such assets can later also be sold at NFT marketplaces for profit.
- Fundraising: NFTs have proven that fundraising can be hassle-free and decentralized. People can use smart contracts to create NFTs that donate money with the security of blockchain technology. The upside is that they are transparent, publicly traceable, and ensure funds reach designated charity organizations.
NFTs have come a long way since Quantum, the first NFT, was minted in 2014. In just seven years, artist Beeple’s NFT titled EVERYDAYS: THE FIRST 5000 DAYS was sold for $69.3 million in 2021, making it the most expensive NFT ever sold. The NFT industry is intertwined with some of the biggest and fastest-growing industries in the digital arena, like gaming, metaverse, and Web3.
If you want to be a part of this next phase of this digital and financial revolution, the first step is getting your hands on the relevant crypto coins and tokens, and CoinSwitch is one of the most easy-to-use apps you can find them on.
Disclaimer : The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to the same. TIL does not guarantee, vouch for or necessarily endorse any of the above content, nor is it responsible for them in any manner whatsoever. The article does not constitute investment advice. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
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