NFTs are the latest trend in the crypto sphere. After the huge success of DEFI, investors are betting on NFT Tokens for higher returns. Let’s understand in detail, what is this hype all about.
What is a Non-Fungible Token Or NFT?
Non-Fungible assets are some of the regular stuff and are the unique digital items managed on blockchain networks. Some of the common examples of the NFT are digital art, collectibles, game items, domain names, and the ownership records of some of the physical assets.
The ERC-721 introduces a standard for NFT, in other words, this type of Token is unique and can have a different value than another Token from the same Smart Contract, maybe due to its age, rarity, or even something else like its visual.
From the very example, we can say that NFTs are not interchangeable.
Brief History of Non-Fungible Tokens
Everything has a history, and the past has an immense potential to manipulate the present, thus the future, up to a certain level. Do, in order to know and understand the currency and future place of where NFT is standing, let’s dig a bit bitter in the past of NFTs.
Experiments in the NFT’s Began with the emergence of the colored coins of the Bitcoin network. On Counterparty Blockchain, illustrations on the Pepe frog character were built on. Some of them are sold on eBay. And the rest of them are sold on the live auction in New York.
The CryptoPunks is the first crypto-based NFT experiment. It comprises 10000 unique collectible punks. Each of which has its unique characteristics. It was built by the larva labs. It was featured on the on-chain marketplace. It could be placed with the wallets with the Meta mask, at the same time lowering the barrier of interacting with NFTs.
In recent days, the limited supply along with a strong brand image among the early adopter community have made CryptoPunks the best of true digital antiques.
Birth of Crypto Kitties
The very first project, Crypto Kitties, was launched in 2007 in order to bring the NFTs into the mainstream. This very incident had taken place at the ETH Waterloo hackathon. This had featured an on-chain primitive game, which allowed the users to breed the cats together in order to generate new cats of varying rarity. Among them, “Generation 0” cats were auctioned with a declined price.
The rest of the new cats also were sold in the market. But a part of the gaming community had labeled Crypto kitties as “not a real game.” The team also tried with some pioneered changes. They also even develop an on-chain breeding algorithm. And lastly, they ended up pioneering a Dutch auction contract. This later became the basic price discovering techniques for Non-Fungible Tokens or NFTs.
How Does NFT Work?
In case you are wondering how non-fungible tokens or NFTs work, then you need to consider the example of Crypto Kitties. When non-fungible tokens are represented on the public blockchain, the developers get the scope to build reusable, common, and inheritable standards that are relevant to all tokens that are non-fungible.
This also includes some basic primitives, like ownership, simple access control, and also transfer. All the non-fungible token standards totally allow all non-fungible tokens to wander all across multiple different ecosystems.
So, whenever any developer creates a new NFT, it will be visible to dozens of wallet providers and will be tradeable on the marketplace. The most important thing that we simply cannot miss is it will be displayable inside of the whole virtual world.
It is the result of an open standard, which offers a reliable, consistent, and clear API, which is at the same time permission also for writing and reading data.
Crypto Collectible Rankings by Sales Volume (All-time)
|1||NBA Top Shot||FLOW||$76,011,029.38||33,206||966,390||66,463|
Top Crypto Collectible Sales (All-time)
|1||CryptoPunk 2890Alien, CapSold: 24 days ago||$ 747,400.09|
|2||Hashmask 9939Mystical, Unique, Mystical Eyes, Mystical Skin, No ItemSold: 14 days ago||$ 640,151.67|
|3||Hashmask 6718Male, Unique, Heterochromatic Eyes, Transparent Skin, BookSold: 13 days ago||$ 497,856.02|
|4||CryptoPunk 6297Zombie, Nerd Glasses, Cigarette, Top HatSold: 9 days ago||$ 361,997.18|
Top 10 NFT Based Cryptocurrency
|#||Name||Blockchain||Marketcap||Price||24h Volume||Blockchain||Change 24h||Change 7d|
|3||Flow (Dapper Labs)FLOW||FLOW||$424.73M||$18.2281||$30,035,161||Own Blockchain||-3.94%||+69.3%|
|7||RedFOX LabsRFOX||REDFOX||$101.32M||$0.07723||$1,959,499||Own Blockchain||+11.31%||+106.8%|
Well, if you want to know about the future of NFT or non-fungible tokens, you need to know the past of it as well. 2020 was all about Defi and Bitcoin. For the most part of 2020, we had gone experiencing the roller coaster ride of Cryptocurrencies.
This increased adoption of DeFi and institutional recognition has made a path for other sectors that are in the same space. More people are developing an interest in favor of DeFi, which is giving reliability to most of the sectors of this space.
According to CoinRank Data, 69000+ NFTs were sold in the last 30 days, and 70 Block Fork were the most expensive deal, which happened at the price of 181472$.
So, by looking at last year’s graph, it is not that hard to say that 2021 will be more reliable for NFTs. We can expect a brighter future for the Non-Fungible tokens along with the projects that are related to this very system.
So, from the above discussion, it is clear that the time of non-fungible tokens has already arrived. The past of NFTs was too interesting and full of adventures. Here the future is also going to be as adventurous as the past. And there are many things related to NFT that are waiting for us to explore and experience.
Author Bio –
Mashum Mollah is a tech entrepreneur by profession and passionate blogger by heart. He is on a mission to help small businesses grow online. He shares his journey, insights, and experiences at BlogStellar ,Social Media Magazine & Search Engine Magazine. If you are an entrepreneur, digital marketing professional, or simply an info-holic, then this blog is for you.
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