A Brief History of NfTs
NFTs, or non-fungible tokens, are a relatively new concept that has quickly captivated the art world, and digital collectibles market.
While NFTs are a more recent development, the technology behind them - The Blockchain - has been around for much longer.
Let’s briefly explore the history of NFTs, including some key innovations and influential projects that have brought this technology to where it is today.
The Beginning
The concept of a non-fungible asset goes back to the earliest days of blockchain technology. Starting from the idea behind blockchain, a decentralized and transparent ledger that can be used to store and track various types of digital assets.
Bitcoin, the first and most well-known cryptocurrency, was created in 2009 and used blockchain technology to enable secure transactions without the need for a centralized authority. In 2012, the first project to use blockchain technology to create non-fungible assets was launched. Called Colored Coins, it was a way to represent different assets, such as stocks or bonds, on the Bitcoin blockchain.
However, it was limited in its use, as the tokens were not unique and could be replicated, leading to issues around ownership and authenticity. So it was really just an early glimpse of what soon could be.
CryptoKitties
It wasn't until 2017 that the first NFT project gained more serious widespread attention. CryptoKitties, an NFT-based game that allowed players to collect and breed digital cats, each with their unique traits and characteristics. CryptoKitties quickly became a viral sensation, with some cats selling for tens of thousands of dollars. This project brought the concept of NFTs, and their possibilities into the mainstream, showing that digital collectibles could have real-world value.
ERC-721
One of the key innovations that made CryptoKitties possible was the creation of the ERC-721 standard, which was developed in 2018. This is a technical standard used for creating non-fungible tokens (NFTs) on the Ethereum blockchain. It enables the creation and ownership of unique digital assets that cannot be replicated or exchanged for another token. This has opened up new possibilities for creators and collectors of digital art, gaming items, and other unique assets, providing a way to monetize and authenticate their creations and allowing for a new level of ownership and control over digital assets. The ERC-721 standard has been instrumental in the growth and development of the NFT ecosystem, and it continues to play a key role in enabling the creation and exchange of unique digital assets on the Ethereum blockchain.
Significant Projects
Since the launch of CryptoKitties and the introduction of the ERC-721 standard, there have been many significant NFT projects that have captured the public's imagination. Here are just a few examples:
Beeple's "Everydays" - In March 2021, digital artist Beeple sold a single NFT for $69 million, making it the most expensive digital artwork ever sold. The artwork is a collage of all the images that Beeple has created over the past 13 years, making it a unique and one-of-a-kind piece.
NBA Top Shot - This project, launched in 2020, allows fans to collect and trade digital basketball collectibles, such as video clips of famous moments in NBA history. The project has been a huge success, growing on the Flow Blockchain with some collectibles selling for hundreds of thousands of dollars.
Art Blocks - This project, launched in 2020, allows artists to create generative art, which is art that is created using an algorithm. Each piece of art is unique and represented as an NFT, with some pieces selling for tens of thousands of dollars.
Crypto Punks - Launched in 2017, CryptoPunks are 10,000 unique 8-bit characters, each with their own distinct traits and characteristics. They were one of the first large pfp based NFT projects and have since become highly collectible, with some selling for millions of dollars.
Bored Ape Yacht Club - Launched in 2021, Bored Ape Yacht Club is a collection of 10,000 unique ape-themed NFTs. Holders of the NFTs are granted access to a members-only club, with benefits such as other exclusive NFT-based experiences, merchandise, community events, and a network of really compelling and influential individuals.
Essentially, NFTs are a fascinating development in the world of digital assets. Enabling unique and valuable collectibles that can be bought, sold, and traded just like physical assets.
While the technology behind NFTs has been around for a few years, the market for NFTs is still in its early stages, and as the popularity of NFTs continues to grow, we can expect to see more significant projects and innovations in the years to come. One area where NFTs continue to have a significant impact is in the art world. Providing a way for artists to monetize their digital creations, which was previously difficult to reliably do.
Another area where NFTs could have a significant impact is gaming. Providing a way for gamers to collect and trade in-game items, which can be a significant and sustainable revenue stream for game developers, and gamers alike.
In conclusion, the history of NFTs is a relatively short one, but it has already had a significant impact on the world of digital assets. From the early days of Colored Coins to the viral sensation of CryptoKitties, and Bored Ape Yacht Club. NFTs have come a long way in just a few years and are showing that they have real-world value and are here to stay.