Many years ago, the future of NFTs was just a concept that a GIF or a JPEG file would be considered an art collectible was just unthinkable. Unlike today, they are known as NFTs, crypto investment assets with a market that surpassed a whopping 49 billion dollars in 2021. These digital tokens and NFTs are bought and sold on specific marketplaces where many tech investors have seen huge profits.
This idea of a digital marketplace where artists could share their work and sell them off directly without the involvement of auction houses or museums seemed impossible just a few years ago. It has drastically evolved over the past 5-6 years, allowing artists, big companies, and organizations to share their work on the NFT marketplace easily.
How did NFTs come into existence?
The concept of NFTs started to evolve on the surface when Meni Rosenfield introduced the idea of colored coins on paper in 2012. The basic idea was to teach a class of methods for representing and managing real-world assets on the blockchain to provide complete ownership of those assets. The idea wasn’t compatible with the Bitcoin blockchain but later came on to become the foundation of NFTs.
Kevin McCoy, a digital artist, minted the first NFT in 2014. Its name was “Quantum” and it was released on the namecoin blockchain. The Quantum was a digital pixelated octagon image that resembled an octopus in different changing colors. After this, several other NFTs were minted on several blockchains and soon after, Ethereum became the hub for releasing all new NFTs making the future of NFTs quite clear.
How NFTs turned out to be a Colossal Success?
In 2021, it became the year of the NFTs with a massive surge in the demand and supply of NFTs. This happened when famous auction houses like Christie’s and Sotheby’s started selling the NFT art pieces and took their auctions online. Christie’s NFT sale of Beeple’s “Everyday: The First 5000 Days” was sold for a whopping $69 million. Such a massive sale like this one validated the NFT marketplace’s growth and gained new customers’ trust.
After artworks, NFTs entered the music industry and succeeded there. Kings of Leon was the first music band to have had their album released through NFTs. Moving on, merchandise, concert tickets and even song tracks started getting sold as NFTs. The affiliation between the audience and the artist directly was one of the primary reasons behind the success of NFTs in the music industry. The main reason is the no longer involvement of third parties or intermediaries for their interactions.
NFTs today aren’t just limited to art, games, or music but they are also trending for every possible real-world asset. To utilize NFTs to their full potential, companies like LCX have introduced the concept of tokenization of diamonds. Almost all diamonds are unique, making them perfect to be tokenized into NFTs. These Tiamonds were enabled by LCX’s framework and are based on the Ethereum blockchain. Tiamonds provide complete transparency, value and security for your investments.
What’s the future of NFTs?
Despite some ups and downs in the past regarding the success of NFTs, it has survived and has become a huge hit. Considering all the aspects of what NFTs are today, we can confidently say they are here to stay. They have had an enormous impact, specifically in the art world. With many people moving towards the Metaverse, it will also definitely aid in the surge of NFTs.
NFTs are still a new technology, and their further growth largely depends on people’s realization of their impact in different fields. The more people realize its capacity and potential, the more they expand. It might still look blurry to some people about the future of NFTs, but with the recognition they have today, something big will happen for NFTs.
