Let's Fathom

Being an avid internet user, you must have heard a lot about NFTs for the past several months. After all, what is this thing that has swayed in the internet world? This curiosity inspired me to investigate more about NFTs, and hope you too, that's the reason of you being here.

History

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The first known "NFT", Quantum was created by Kevin McCoy and Anil Dash in May 2014, consisting of a video clip made by McCoy's wife, Jennifer. McCoy registered the video on the Namecoin blockchain and sold it to Dash for $4, during a live presentation for the Seven on Seven conference at the New Museum in New York City. McCoy and Dash referred to the technology as "monetized graphics".

A non-fungible, tradable blockchain marker was explicitly linked to a work of art, via on-chain metadata (enabled by Namecoin). This is in contrast to the multi-unit, fungible, metadata-less "colored coins" of other blockchains and Counterparty.

In October 2015, the first NFT project, Etheria, was launched and demonstrated at DEVCON 1 in London, Ethereum's first developer conference, three months after the launch of the Ethereum blockchain.

Understanding the meaning

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“Non-Fungible Tokens” is the expanded form of this hype. Anything that cannot be replaced or is only one of its kind is known as “Non-Fungible.”

Now let’s talk about tokens; you and I are pretty familiar with this. It can simply be a piece of paper, metal, or anything that is sometimes used instead of money, but not everyone has it like money. If we understand it in a simple language, then with money, we can buy anything sellable, but with a token, we can buy only that thing for which the token is made.

NFT gives us a way to have clear ownership over a digital item: an image file, a tweet, a song, a text posted on a website, a physical item, and any other digital format.

A tweet? Yes! Twitter CEO Jack Dorsey’s first tweet NFT sells for $2.9 Million!

Although they are not new and have been around since 2014, these tokens are gaining popularity as they are becoming an increasingly popular way to buy and sell digital artwork.

NFTs are digital birth certificate
                                 -Dane        

Difference between Cryptocurrency and NFTS:

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These tokens are cryptographic assets on blockchain that have unique identification codes and metadata which distinguish them from each other. However, they are different from cryptocurrencies.

Cryptocurrencies are fungible(replaceable by another identical thing) which means that they can be traded or exchanged, one for another. For example, the value of one Bitcoin is always equal to another Bitcoin. On the other hand, these tokens are non-fungible.

Non-fungible tokens are an evolution version of cryptocurrencies. As they can be used for digital representations, the main benefit of NFTs is market efficiency.

As the physical asset can be converted into a digital one, this Token helps remove intermediaries. Instead, they allow artists to connect directly with their audiences.

The other benefit of NFT is that it can help us in improving business processes.Well, that's enough for today!

Have a great day and see you next time around :))