What Are NFTs Explains Ido Fishman​

As of today the market capitalization of NFTs is over and above US$ 50 Billion although the market is still quite a fresh market considering its full-fledge launch in 2019. So what is this NFT and what is the purpose of it.

Finding True Meaning of NFTs

NFTs are called ‘Non-Fungible Tokens’ which comprise audio or visual salable content and the content therein represents assets having all the properties as any other conventional asset has. This means that since NFT is an asset therefore it can be transferred, sold, purchased, traded and perhaps can be mortgaged like an ordinary asset. However, the difference between a conventional asset and NFT asset is that an ordinary asset could be both, movable and/or immovable, but it would have physical form. In the case of NFT, an asset is non-physical and contained in digital form like image, audio, video, codex, binary etc. You can own an NFT asset but cannot touch it. For storing them you would need a virtual space like a computer storage etc.

NFTs Place In the World Market

The online financial world was taken by surprise when NFTs were launched initially, although the concept took longer than expected to launch. However, the official launch of NFTs made its way into the market in 2019 and since then NFT market is booming without ever pausing for a second. The technology of NFT is a produce coming out of blockchain and cryptocurrencies. This is why it has strong connection with both as for running an NFT, the issuer needs a blockchain network. Similarly, for an NFT item to be sold, the currency used is the digital currency like cryptocurrencies. Currently, second largest cryptocurrency of the world, Ethereum, has been dominating NFT economy.

What Uniqueness Has To Do With NFTs?

All NFTs are inherently and by default unique and distinct, explains Ido Fishman. According to Ido Fishman, generally, an NFT is supposed to give proprietary rights to a digital artwork or collectibles to the owner of the NFT. For instance, Muhammad Ali Clay was the best fighter boxing field had ever seen. He was a living legend who died few years back. His family and team managers are running foundations on behalf of the departed legend and they own certain unseen content belonging to the deceased Ali. So the team came up with an idea of converting those unseen objects into digital collectibles and sell it in the public for revenue generation. While at the same time enabling Ali’s fans to own collectibles visually which no one had ever seen before nor would they ever would be. This is the sole intent and purpose of NFTs i.e. allowing people own certain things virtually which they could never own physically. For instance, the value of an unseen photo cover of Ali would be into several millions. So only the rich are going to buy that unique photo cover. We and you would simply bypass because not everyone in the world is so rich.

When Came The Boom?

As explained before, NFTs initially earned global recognition in 2019 but the real boom came 2 years after its launch in 2021. In that year, NFTs market singlehandedly generated funds exceeding 25 billion dollars i.e. the highest momentum ever. Fortunately, the momentum never ended for NFTs and it is existing even to this day. As of today, the market of NFTs has doubled since 2021 by crossing market capital above US$ 50 billion dollars. What then was the reason of the boom? Whether it was the increased sales or some other factors contributing in the massive growth of NFTs? The answer is simple and two-fold. Firstly, of course the boom came because of the increased sales but that wasn’t alone the reason. The second and most astonishing reason for the boom was significant NFT project which sold single NFTs against millions of dollars. So far the most expensive single NFT sale was sold at a whooping price of US$ 69.3 Million.

End Thoughts

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