What are NFTs? and why are they trending?

Some pixelized images are being sold for millions of dollars on the internet. They only exist digitally and can be accessed by anyone, their only particularity? a unique embedded code called NFT (Non-Fungible Token).

How does it work?

NFT combine both cryptocurrency and blockchain. Thanks to the blockchain system, transactions can be certified, and in the case of NFTs, non-fungible items like art become a transactional entity that grants certified ownerships rights to whoever is interested to buy them (The Verge).

It is important to understand the concept of fungibility to comprehend how NFTs work. The term stands for “the ability of an asset or good to be interchangeable with others from the type”(Oxford Languages). NFTs have the particularity to stand in a special realm where the digital becomes non-fungible and therefore unique and rare. Therefore the difference between any JPG file and an NFT relies solely on property rights! thus, anyone willing to buy a unique NFT will be the only owner. It places NFT in the ranks of rare commodities.

When did it start?

This new trend started in 2010. The precursors being first NFTs representing Rare Pepe (a popular frog). Then in 2017 the Cryptopunks (10000 unique characters), and the Cryptokitties (a video game based on blockchain technology) made their appearances on the market. They started setting up the trend that got bigger gradually. Nowadays NFT’s can be found in many areas including culture, sports, music, and even luxury (Popcorn).

Today NFTs could have a prominent future making the digital unique and giving it more value. It is already expanding at an interesting rate. Speculations about it being a new bubble that wouldn’t last are spreading. However, its unique technology proves that the blockchain system and the cryptocurrency market can be combined. That combination will then create real valuable items that are totally different trackable. This technology also provides more security to valuable assets, that could be copied like luxury bags or even paper money. I believe that NFTs will keep growing bigger and make a big change in the digital world.