A slice of virtual pizza for $8,000! Everyone on the web is talking about non-fungible tokens — they are increasingly used in the game industry and art. We will talk about what NFT technology is, how it is used and why tokens bring in millions of dollars.
What is an NFT?
Blockchain is a system in which transactions are recorded so that information about them cannot be deleted or changed. A token is any record in such a system. In an open blockchain, all tokens are fungible. For example, one bitcoin in one user’s wallet is equal to one bitcoin in another user’s wallet. But with Non-Fungible Token (NFT) technology, everything changes: each non-fungible token is unique. This method is suitable to secure your rights to any object of virtual reality — a piece of art, anything in a computer game, or even real estate.
NFT technology was created in 2017 based on Ethereum smart contracts. Over the entire period of its existence, NFT has sold more than $ 517 million tokens.
One of the first NFT projects to gain significant popularity is the 2017 CryptoKitties game. Its purpose is to collect virtual cats and exchange them. Each cat is special and unique: it has age, breed, color, and so on. The game had a significant impact on the popularity of NFT tokens — the demand for the kitties was so great that less than a week after the start of CryptoKitties, it began to consume 11% of the resources of the Ethereum NFT token network instead of the initial 4%.
The very first tweet
In March 2021, Twitter CEO Jack Dorsey posted his first tweet to the Valuables NFT online auction. At first, this tweet cost several hundred thousand dollars, then Hakan Estavi, CEO of Bridge Oracle, offered $ 2.5 million. In March 2021, the tweet sold for $ 2.9 million. Estavi also received a digital certificate autographed by Dorsey — the post itself will stay on Twitter.
Pizza Hut believes that no one can exist without pizza, so the company decided to anchor it in the digital universe. Each week, the company releases a new image of a slice of NFT pizza. The first slice was put up for sale “at a price equal to the price of one bite of a real pizza” — 0.0001 ETH (or 18 cents) but was eventually sold for $8,824. Such a good business!
Injective Protocol (the American blockchain company) has bought one of the certified copies of Morons by Banksy from the Taglialatella gallery in New York. With this work, the artist makes fun of collectors who spend a lot of money on art. Employees of the company burned Morons live and created a non-fungible token tied to it — it was the first time an existing work of art was turned into a virtual asset. Banksy’s NFT painting was later sold at auction for $ 380,000.
Christa Kim (the architect) made a virtual “Mars House” and sold it at SuperRare for $ 515,459. In addition to the rights to a unique digital home on Mars, the buyer receives all the furniture that is made by a real Italian manufacturer. You can watch this house from any computer, but Kim recommends doing it through a virtual reality headset.