Non-Fungible Tokens (NFTs) – Redefining Digital Scarcity
The cryptocurrency space is always brimming with new technological advances, whether that be with token projects or blockchain applications. The latest buzz comes in the form of Non-Fungible Tokens (NFTs). Celebrities, artists, billionaire entrepreneurs, and athletes are seemingly tweeting about the excitement of NFTs, but what exactly are they?
While the recent hype surrounds art or collectible NFTs, like NBA player Stephen Curry’s purchase of a zombie-eyed Bored Ape, their application and usability reach far beyond static art or collectibles. NFTs are tokens that have introduced a new way to verifiably prove ownership of virtually anything through the blockchain. While a majority of the current NFTs come in the form of a JPEG or GIF, the sector is evolving such that the NFT itself becomes a means to an end. In other words, the ownership of a NFT can grant the owner the right and avenue to access data or a community directly.
NFTs reportedly recorded over $56M in sales in 2020 and over $927M in 1H2021 alone. This marks a 5,404% growth year-over-year when compared to 1H2020. While NFTs may sound foreign to many, the concept is fairly aged and rooted in the history of the crypto industry. For a fuller understanding of NFTs, in this report we outline their purpose, background, current developments, and how they can be game-changing for those who believe in their application and potential.
We also show how to participate in this sector, by including examples of where you can buy or mint a NFT. While we do provide examples, please note that it is not an endorsement of any specific NFT platform or the buying, minting, or selling of NFTs. As always, we strongly urge you to do thorough research before jumping in.