NFT is the new buzzword in the cryptocurrency space as well as collectible items space. It stands for Non-Fungible Tokens. Fungible means replaceable. For example, say, you have a cookie. If I borrow that from you, and give you another one, it is all the same you. You have one cookie. That’s it. It doesn’t make any difference. Unlike cookies, NFTs are non-fungible, meaning they cannot be replaced. That is to say, they are like the Mona Lisa painting or the Kohinoor diamond – Authentic and rare. To top it all of, it is digitalized and its authenticity is guaranteed by a Blockchain! How cool is that?
NFTs are are based on blockchain. There are many cryptos offering NFT platforms. The most popular among them is Ethereum. The standard for NFTs based on Ethereum is called ERC-721(Ethereum Request for Comments 721).
The standard provides functionalities like to transfer tokens from one account to another, to get the current token balance of an account, to get the owner of a specific token and also the total supply of the token available on the network. Etherscan NFT Tracker lists the top NFT on Ethereum by tranfers volume.
NFTs can represent either digital or physical items.
There are many instances of NFTs being sold for ridiculous amounts. Some of the popular ones are: –
- The digital artist Beeple sold $3.5 million worth artwork over a single weekend drop through Nifty Gateway last year.
- A digital artwork by Beeple – titled CROSSROADS was sold at a whopping $6.5 million at Nifty Gateway mid-February.
- The electronic musician 3LAU reportedly made more than $11 million from album sales and digital goods last week.
- Musicians like Mike Shinoda of Linkin Park and Fort Minor has released NFTs as a part of their strategy for his new single “Happy Endings” featuring popstar Iann Dior.
- A popular GIF named Nyan Cat was sold for 300.00 ETH($468,126.00) on Feb. 19.
- One fake Banksy, by an artist calling themselves Pest Supply, sold for more than 60 ETH, or about $100,000. The artwork featured a stencil saying “I can’t believe you morons actually buy this NFT shit.”(Axios)
- A short clip of a LeBron James dunk from 2019 sold for $208,000, on a day when more than 20,000 buyers spent more than $45 million in total buying NBA TopShot clips(Axios).