NFTs are on the rise

One of the most popular discussions in our society right now is NFTs. A lot of people have many questions on what these are and why everyone is talking about them. NFTs are crypto-tokens that use blockchain technology to prove authenticity and ownership of a unique digital asset. The abbreviation, “NFTs,” comes from the name of the tokens: Non-Fungible Tokens.

When an asset is fungible, it makes it interchangeable to other identical assets. This is similar to digital products that we use (songs, pictures, quotes, etc) on an everyday basis. They are able to be easily copied and contracts can help users claim ownership over their products and digital assets. NFTs solve this problem by transforming metadata into a token to represent an asset and can be sold to another person without the use of a contract. NFTs allow users to verify the whole history of their digital assets. The blockchain technology of NFTs lets users record transactions and the enforcement of contracts through networks of computers all without a contract. The steps of a blockchain are sectioned into four steps: First, a new transaction is entered into the system and then transmitted to a network of peer to peer computers all around the world. Next, the computers solve equations to confirm that the transaction is valid. After that, the transaction is clustered together into blocks, and the blocks of transactions create history of all the previous transactions that are permanent. Finally, the transaction of the blockchain is complete.

With the structure of NFTs being similar to Bitcoin, they have recently become the most popular use of blockchain. People have spent over $174 million on NFTs within the rise of the product since 2017. Many have described NFTs as serial numbers for luxury brands that help verify authentication of their products. The rise of NFTs have made marketers feel a sort of excitement due to the way they can be used for their benefit. They provide new possibilities to digital goods, media distribution, and access to management. The value of NFTs will be able to rise through the trading of them; this helps them create scarcity and value for digital goods. The rise of NFTs has caused huge celebrities and business owners to create NFTs for their own companies. Some of these people include Elon Musk, Mark Cuban, and Post Malone. With the Post Malone NFT service, “brands are now able to use NFTs to market themselves. The recent increase in popularity has caused the transactions of NFTs to triple in value within the last few years, making them worth $250 million in total. They have upended the way digital media is distributed amongst people and organizations by starting the argument of making ownership models more creator-centric.
In a quote by Jesse Walden from Variant Fund, they said , “This retains the ownership of digital media without limiting the propagation of files across the internet.”
Digital online communities have contributed to the sale worldwide of NFTs within the past few years, especially throughout the Covid-lockdown period. One of the last things that are said to add to the rise of NFTs is tokenizing access to services and experiences. NFTs add individuality to each ticket beyond the value, allowing them to be tokenized and free to be bought without needing a third party.

While NFTs have a huge effect on businesses, organizations, and ownership of media, the real question is: what effect does it have on the world as a whole? Digital art has made a comeback with the emergence of cryptoart while using NFTs.The rise of this art style has made people see cryptoart on the track to being a mainstream art trend. Artists can create an NFT for their cryptoart, which allows artists to have limitless creativity for themselves. The change of external factors and modifications of their NFTs can help the artist overall and the sales of their work. An example of this in the article, “The Impact and Rise of Non-Fungible Token (NFTs) is The Art World,” is, “…Beeple’s mutating portrait of Donald Trump….originally acquired by art collector Pablo Rodriguez-Fraile for $67,000 in October 2020, the NFT was sold months later for $6.6 million on the secondary market.” NFTs have caused a digital explosion that the world cannot neglect any more. With over 157 million Etherum wallets that can store NFTs, the sale of them will continue to increase.

With NFTs being as unique as they are, we can tell why there has been a sudden rise of them and what it means for us as a society. NFTs are tokens that use blockchain technology to help prove authenticity and authority to digital media all over. The sudden rise of them was caused by the similarity it has to Bitcoin and the marketing influence they have for businesses. Many businesses have invested in their NFTs, and even celebrities, like Post Malone, have made their own NFTs. They have helped the world popularize the cryptoart form. NFTs have been used by artists and the use of them can change the external factors and modifications for their benefit, leading to them making more money. The rise of NFTs has been a good thing for the world so far, and we should hope for the best use and adaptations of NFTs for the future.

Bonaceto, A. (2021, August 2). The Impact and Rise of Non-Fungible Tokens (NFTs) in The Art World. Coruzant Technologies. https://coruzant.com/blockchain/the-impact-and-rise-of-non-fungible-tokens-nfts-in-the-art-world/

Fay, I. E., & Fay, I. E. (2021, March 28). The rise of NFTs and what it could mean for the collaboration economy. MENAbytes. https://www.menabytes.com/rise-of-nfts/

The Incredible Rise of NFTs. (2022, February 8). Walletinvestor – NFT Blog. https://nft.walletinvestor.com/news/the-incredible-rise-of-nfts/#:%7E:text=The%20rise%20of%20NFT%20sales%20worldwide%2C%20particularly%20in,communities.%20These%20communities%20are%20tended%20towards%20NFT%20purchasers.

Yao, R. (2021, December 31). The Rise of NFTs and What It Means for Marketers – IPG Media Lab. Medium. https://medium.com/ipg-media-lab/the-rise-of-nfts-and-what-it-means-for-marketers-628efc68c90#:%7E:text=NFTs%20are%20like%20the%20serial%20numbers%20that%20a,digital%20goods%2C%20digital%20media%20distribution%2C%20and%20access%20management.