The evolution of NFTs has been remarkable and fascinating. Non-Fungible Tokens (NFTs) have taken the world by storm. It is fair to say that NFTs have revolutionized the way we think about ownership and authenticity in the digital world. From digital art to sports collectibles and utility, isn’t it some evolution? The evolution of NFTs took time as it hasn’t occurred overnight. So, the question is how did we get here? In this blog, we’ll explore the evolution of NFTs, from their origins in cryptocurrency to their current status as a cultural phenomenon.
The Evolution of NFTs
We are witnessing a rapid evolution of NFTs since their inception. There are certain key points that you need to understand to know how NFTs revolutionized over a course of 6 years.
1. Cryptocurrency Roots
NFTs originated from cryptocurrency. Therefore, we must first understand their origins in cryptocurrency to understand NFTs. As you know, cryptocurrency is a digital or virtual currency. It uses cryptography for security. Bitcoin and Ethereum are the most famous examples of cryptocurrencies.
An unknown person using the name of Satoshi Nakamoto created Bitcoin in 2009. Satoshi designed Bitcoin to operate as a decentralized, peer-to-peer electronic cash system. His objectives were to eliminate the need for a central authority by allowing for direct transactions between parties.
In 2015, Vitalik Buterin played a revolutionary role in the rise of cryptocurrency when he created Ethereum. Buterin is a Russian-Canadian programmer and writer. Buterin published the initial white paper outlining the concept of Ethereum in late 2013, and then in 2015, he launched the platform.
Finally, let’s get to the point. The concept of NFTs has been around for several years. However, the concept experienced introduction only after the creation of the Ethereum blockchain. A developer named William Entriken first introduced the concept of NFTs on the Ethereum blockchain in 2017. Entriken and his colleagues created a new standard called ERC-721. In fact, ERC-721 is a unique contract that allows for the creation and trading of unique digital assets, such as artwork, collectibles, and virtual real estate. NFTs have gained substantial popularity since then. Moreover, they have been used for a wide range of applications, including music, sports, and gaming.
2. The Birth of NFTs
As we discussed earlier, the Ethereum blockchain introduced a new type of contract called ERC-721 in 2017. All previous tokens or contracts were fungible. That means each token was interchangeable with every other token. However, ERC-721 tokens were unlike fungible tokens and were non-fungible. That means each token was unique and could not be replaced by another token.
As a result of the ERC-721 introduction, a whole new world of possibilities for digital ownership opened up. Thus, creators could create unique digital assets, such as artwork, music, and video, and sell them to collectors. And collectors of digital assets could then own them in a way that was previously impossible.
3. The Evolution of NFTs
Finally, the day came when the first game was launched on the Ethereum blockchain in 2017. Yes, it was the CryptoKitties game. The game allowed players to buy, sell, and breed unique digital cats, each represented by its own non-fungible token. The game quickly became popular, and some CryptoKitties were sold for tens of thousands of dollars. Thus, the rise of NFTs started with the CryptoKitties game when they first gained mainstream attention in 2017.
The pump of the rise of NFTs occurred in 2017 and their popularity exploded. That in turn brought artists, musicians, and even sports teams getting on board. Here are a couple of examples that will make you realize the evolution of NFTs. Firstly, you would be astonished to know that Beeple, a digital artist, sold a single NFT for $69 million in March 2021. It was the third-highest auction price achieved by a living artist. Secondly, the National Basketball Association has also embraced NFTs, selling virtual basketball cards and other collectibles to fans.
4. The Future of NFTs
The evolution of NFTs has not been without controversy. Critics argue that the high prices of NFTs are a bubble that will eventually burst. Additionally, the environmental impact of NFTs has also been under criticism. This is because it requires significant energy to create and maintain NFTs which is unsustainable. Finally, the legal implications of NFTs have also been a topic for debate.
However, the ever-increasing popularity of NFTs illustrates that NFTs are here to stay. Despite the criticism, we shall see even more innovative uses of NFTs in the future as technology continues to evolve. In fact, the possibilities are endless as from virtual real estate to digital fashion, anything is possible.
Concluding remarks on the evolution of NFTs
You would be agreed with us after reading this blog that the evolution of NFTs has been a fascinating journey. In fact, it is quite astonishing how NFTs evolved from their roots in cryptocurrency to their current status as a cultural phenomenon. It wouldn’t be wrong to state that whether you love them or hate them, NFTs have undeniably changed the way we think about ownership and authenticity in the digital world. They are here to stay for a long time and it will be exciting to see where they go next.