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    The History NFTs

    When normal life is disrupted, such as during a crisis, creativity is frequently sparked. Big banks knowingly gambled with their customers’ money in high-risk businesses in 2008, pushing the United States into a financial crisis. Blockchain was created as a result of this disruption, and it has since become a huge enabler of change in a dysfunctional system. All cryptocurrencies and NFTs are built on the blockchain engine, which is a system. All transactions on the blockchain are recorded in such a way that changing, hacking, or cheating the system is difficult (if not impossible). It is also decentralized, meaning control and decision-making are transferred from a centralized entity (person, organization, or group thereof) to a distributed network (group of people).

    The Goal

    The idea was to create a new monetary system that didn’t put power in the hands of a few people who made choices behind closed doors, but rather a system that worked for everyone involved and could be easily monitored. Bitcoin was the first big blockchain innovation. It was also the first global money, a currency that can be easily traded between countries without the need for exchange rates. As we become a more globalized society, this becomes increasingly important. Getting crypto cash is similar to getting foreign currency by exchanging your country’s dollars. The only difference is that instead of going to a bank, you use a highly secure site like Coinbase, Robinhood, or Metamask to swap your money.

    Ethereum

    Ethereum was the next step in the blockchain evolution. Ethereum is a cryptocurrency that also serves as a platform for developers to create “smart contracts.” These smart contracts are coded packets that are linked to a digital asset and confirm that the asset is uniquely identifiable, traceable, and verifiable. These contracts are unhackable and uncopiable and can be used on anything digital. Smart contracts are attached to all NFTs (non-fungible tokens). NFTs are merely goods that can be obtained in exchange for cryptocurrency, most commonly Ethereum. To put it another way, crypto is the new money, and NFTs are the digital commodities you can buy with it.

    Rise of NFTs

    When Beeple’s “Everydays: The First 5000 Days” digital artwork was sold for $69 million in partnership with Christies, NFTs gained mainstream attention. For the time being, NFTs are associated with the art world, but they can be used in a variety of ways. A piece of digital art (or data) can traditionally be replicated multiple times, leaving the author or purchaser with little control over the duplication or method to confirm the original work. Michael John Peters, a fine art professionally for over a decade, explains the significance of NFTs in the art world, “Faking certificates of authenticity or replicating art is very simple. Some paintings with identical dimensions and composition sell for vastly different prices depending on whether or not they have provenance (a documented history) and a certificate of authenticity. A Picasso picture with provenance and authenticity, for example, sold for 2.2 million dollars. A different Picasso painting, with the same size, composition, and sale date, but no provenance, sold for only 158 thousand dollars. NFT delivers indestructible proof of ownership as well as unbreakable provenance that will last forever. Every painting, both digital and physical, will have an NFT attached to it in the future.”

    Integration of NFTs everywhere

    It’ll only be a matter of time before the relevance of NFTs is no longer a topic of debate. Major corporations are aware of this and are constructing in this area:

    • NFTs are being integrated into Twitter.
    • Facebook is contributing to the creation of a metaverse.
    • Nike is working on an NFT verification system for shoes.
    • Coinbase is developing an NFT exchange.
    • Warner Bros. has already released Space Jam NFTs and plans to release music NFTs in the future.

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