NFTS (Non-Fungible Tokens) are digital tokens which validate the ownership and authenticity of a virtual file. This media can be anything from a single lettered text to complex and intricately coded artworks. They are the verification of the ownership of virtual intellectual property. The transactions take place with the help of blockchain, a composite technology which keeps record of each transaction between users. It is then shared on a public display ledger encrypted by complex codes and algorithms which makes fraudulent transactions difficult as each and every record/block has to be altered making it highly secure from any sort of hacking. NFTs are marketed on sites like OpenSea and Rarible and the most popular form of payment used to sell and buy these is the cryptocurrency Ether (Ethereum).
NFTs were first introduced in 2012 by Bitcoin in the form of coloured coins which were rarer and more expensive than normal bitcoins. From 2015 to 2016, the pepe frog meme NFTs started being traded, boosting the meme economy and bringing some attention to the NFTs.
NFTs started getting the attention of mainstream media once CryptoKitties, an online game which allowed users to collect and breed a variety of images of 2D cats, was released in 2017. In 2017, Matt Hall and John Watkinson also released CryptoPunks. All 10000 of which were given away for free to people who owned Ethereum wallets. Each CryptoPunk now holds a value of 50 ETH OR 135000 USD on average and are seen as a substantial part of the NFT market.
The NBA Topshot, collectable media files of the highlights of multiple NBA games were minted as NFTs and released in July 2019, brought in 338 million USD over a span of just 6 months from October 2020 to March 2021.
With the growing usage of digital electronics in everyday use, many artists are going digital as the variety of canvases, palettes and brushes make it more efficient and easier to put their ideas on the screen. Crypto art and digital art are slowly entering the markets of mainstream art. The auction house Christie’s collaborated with MakersPlace, an online market of NFTs, to auction the sale of Beeple’s 5000-piece collage which sold for 69.3 million USD or 38000 ETH.
Today, the NFTs have created a rapidly expanding market especially for art. A lot of digital and graphic artists are making NFTs, some creating traditional artworks and some creating collectibles like the Monas, Cryptopunks and The Bored Ape. Artworks range from pieces with the traditional detailed pieces like Ocean Front by Beeple and much simpler pieces like Nyan cat by Chris Torres.
Despite criticism that the NFT market is just a bubble economy, more and more artists are going digital every day and a lot of people are looking to invest as this is just the beginning of a new significant market which is paving way to a new renaissance.
Ocean Front by Beeple from artstation.com
Nyan cat by Chris Torres from playtoearn.com
Cryptopunks from news.bitcoin.com