You’ve probably heard of NFTs by now – but what are they, exactly? And who invented them? In this post, we’ll answer those questions and more, so that you can be up to date on all things NFT!
What is an NFT?
NFTs, or non-fungible tokens, are a type of cryptocurrency that represents a unique asset. Unlike Bitcoin or other fungible tokens, which are interchangeable and can be divided into smaller units, NFTs cannot be divided or exchanged. This means that each NFT is like a fingerprint – completely unique and unable to be replicated.
When were NFTs invented?
The first ever NFT is Quantum, by Kevin McCoy and was created in 2014. Quantum was created on the Namecoin blockchain, before Ethereum, the now leading NFT blockchain, was even created. McCoys NFt featured a video clip created by his wife. It was later sold for $4.
The NFT was sold again in early 2021 for $1.4 Million.
In October 2015, the first NFT collection, Etheria, was created. The collection was presented at DEVCON 1 in London, the first Ethereum developer conference.
In 2017, CryptoKitties became one of the first games to use NFTs. In CryptoKitties, players can purchase, trade, and breed digital cats. While the game itself is fairly simple, it proved that NFTs could be used to represent real-world assets in a digital space. And since then, the use of NFTs has exploded. Today, you can find NFTs representing everything from art and music to sports highlights and tweets!
How Do NFTs Work?
NFTs are built on top of blockchain technology – specifically Ethereum’s blockchain first. When you purchase an NFT, you’re actually purchasing a token that lives on Ethereum’s blockchain. This token is what gives you ownership of the asset represented by the NFT.
Because they’re built on Ethereum’s blockchain, NFT transactions are public and transparent. This means that anyone can see when an NFT is created or sold – but the identity of the buyer or seller remains anonymous. Ethereum’s blockchain also makes NFTs tamper-proof and secure – meaning that they can’t be counterfeit or stolen.
Why Are People Buying NFTs?
People buy NFTs for a variety of reasons. Some people see them as investments, betting that the assets they represent will increase in value over time. Others simply enjoy collecting unique digital items. And some people see buying NFTS as a way to support their favorite artists or creators by giving them direct financial compensation for their work.
Whatever the reason may be, there’s no denying that people are buying NFTS in droves – and that the market for them is only going to continue to grow. If you’re thinking about buying an NFT, there are a few things you should keep in mind. First, make sure you understand what you’re buying – and why you’re buying it. Second, research the seller to make sure they’re reputable. And finally, don’t invest more than you’re willing to lose!
Conclusion
NFTs are a hot commodity right now – but their history is one that has spanned nearly a decade with them being first created by Kevin McCoy in 2015. Throughout 2015 and 2020, strong but slow updates were made to the NFT ecosystem. In early 2021, the finance and art world was hit by a huge explosion of interest in NFTs which still persist to this day despite a small NFT market crash in 2022.
