Already, the metaverse platform is closely related to the lives of teenagers and those in their 20s. NFT stands for ‘non-fungible token’ and refers to a token that represents a digital asset with scarcity. NFTs utilize blockchain technology, but unlike existing virtual assets, a separate and unique recognition value is assigned to digital assets, making them impossible to exchange.
The beginning of NFT is ‘CryptoKitties,’ which was developed by startup Dapper Labs in 2017. It is a game in which users create their rare cats by breeding cats with NFT attributes. In particular, at the end of 2017, the game’s digital cat was traded for 110,000 dollars (about 120 million won), and it was a topic of discussion. From 2020, Dapper Labs has partnered with the National Basketball Association (NBA) to provide an NFT trading platform, called ‘NBA Top Shot,’ where users can upload short edited videos of famous players’ highlights. Can trade Dapper Labs has a licensing deal with the NBA and is making and selling NFTs in limited numbers to maintain scarcity.
NFTs are virtual assets with the value of scarcity and uniqueness. That is why, in recent years, it has gradually expanded its influence in the trading of digital artwork, online sports, and game items. Representatively, a 10-second video clip created by digital artist ‘Bible’ can be viewed online for free at any time but was sold for $6.6 million on the NFT exchange in February 2021. Additionally, in March 2021, Tesla CEO Elon Musk’s wife and singer Grimes auctioned off a collection of 10 digital paintings, entitled ‘War Nymphs,’ with NFT technology, for $5.8 million in 20 minutes. The bid was a big topic.
As such, many companies and organizations are trying to commercialize NFTs in various environments. Of course, it is a principle that works as a cryptographic token like a cryptocurrency, but it is not interchangeable. However, the NFT cryptographic transaction process can guarantee the authenticity of each digital file by providing digital signatures that are used to track an NFT’s ownership.
In conclusion, digital art, collectibles, in-game goods, and online products, such as music, will be used. However, NFTs have the potential to be used in many areas. If they are combined with new ideas in many businesses, they are dotted with smart assets that will play their role as digital assets in our life.
The introduction of new technology will not change the standard of currency or assets that have been traditionally used. However, the new environment in which we live or the birth of new goods in the process of evolution can be wisdom for us to live in the future.
Humans are always good at inventing new things and adapting to them.
Reference list
Ante, L. (2021). The non-fungible token (NFT) market and its relationship with Bitcoin and Ethereum. SSRN Electronic Journal, 10-230(30).
Chris, C. (2021). NFT art and collectibles for beginners : the must have guide for understanding non fungible tokens (NFTs). Publishing Forte.
Clark, M. (2021). People are spending millions on NFTs. What? Why? [online] The Verge. Available at: https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq.
constantino (2022). NFL Looks to Kick Off NFT and Metaverse Partnerships With New Job Post. [online] The Motley Fool. Available at: https://www.fool.com/the-ascent/cryptocurrency/articles/nfl-looks-to-kick-off-nft-and-metaverse-partnerships-with-new-job-post/ [Accessed 3 Feb. 2022].
Sharma, R. (2021). Non-Fungible Token Definition: Understanding NFTs. [online] Investopedia. Available at: https://www.investopedia.com/non-fungible-tokens-nft-5115211.
