Non-Fungible Tokens (NFTs) are a fascinating phenomenon. Kevin McCoy and Anil Dash are credited with creating the first NFT in 2014 — Quantum. Sotheby’s sold it at auction for $1.472 million. OpenSea, the leading NFT marketplace, moved $5 billion of NFTs in January. The best day was January 31 when they sold 233 million, or over $10 million an hour. After surviving the DotCom bubble of 2000, the housing bubble (2008), and the Bitcoin bubble of 2018 are we witnessing the start of an NFT bubble?
In this article we will cover:
- What is an NFT?
- NFT Sales Are Exploding
- Why Are Some NFTs More Valuable Than Others?
- What Do You Really Own with an NFT?
- The NFT ‘Right-Click’ Problem — Is It Theft?
- Some Crazy NFTs
What is an NFT?
A non-fungible token (NFT) is a non-interchangeable unit of data stored on a blockchain, that can be sold and traded.. NFTs are digital files such as photos, videos, and audio. Because each token is uniquely identifiable, ERC-721 tokens are one of the most popular ways to store NFTs on the Ethereum blockchain. An ERC-721 token consists of a number of functions and methods to define a smart contract that is stored on the blockchain. Smart contracts make it possible to have permanent identification information. They also ensure that NFTs cannot be divided into smaller units to be sold. Also, the smart contract can ensure that the digital assets are one-of-a-kind and non-replicable. This makes the NFTs scarce and rare which is the reason why NFTs have value. Virtually anything can be represented digitally on the blockchain.
NFT Sales Are Exploding
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