The creation of digital assets and the growth of NFTs

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We live in a completely different world, ravaged by the pandemic for over two years, a technologically more advanced world, a world where technology has played a huge role in our lives and where we are inclined to use technology for various purposes. . The start-up ecosystem flourished extremely well during the pandemic. There is a new phenomenon in the market which has had a huge impact during its short period of existence. Non-fungible or commonly known as NFT tokens are the talk of the town. NFTs are digital assets stored on a blockchain. A digital asset means it can be anything from an image to a video or animation or a single pixel or even a tweet for that matter. Since the item is not fungible, it means it is one of a kind. There is only one Mona Lisa. We cannot exchange the portrait of the Mona Lisa and recover the same portrait. What he / she will receive will be completely different from the item he / she exchanged. The same principle is applied to NFTs. The NFT in Context is one of a kind like the first tweet from Twitter or the video from Beeple. The person who buys the TVN owns the asset. Ownership is shown on a digital ledger called the Blockchain. The Blockchain network that supports the NFT marketplace records the transaction and since it is a public platform, it ensures the transparency of the sale.

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“Digital ownership has driven tokenization, allowing brands and creators to deliver exclusive and organized services to their communities, which has resulted in exponential growth in engagement and monetization,” said Praphul Chandra, CEO and founder of KoineArth. A colorful coin on the Bitcoin Blockchain was the origin of the idea for NFT. The colored coins were tokens that represented any real world asset ranging from a car to stocks or bonds. The counterpart appeared in 2014, which was a peer-to-peer financial platform that enabled asset creation and had a decentralized exchange that allowed users to create their tradable currencies. Counterparty has become a platform for trading cards and memes. Force of Will collectible cards have become popular on the counterpart, as has the meme frog called “Rare Pepe.” As Rare Pepe’s trade began to pick up steam, Matt Hall and John Watkinson, the creators of Larva Labs, created unique characters that were generated on the Ethereum blockchain. The project was called “Cryptopunks” and no character was alike. It was a hybrid of the ERC721 and ERC20 token standards. After that, Cryptokitties entered the market which led to the boom in the NFT market. Cryptokitties used ERC721 because it was a blockchain-based virtual game that would allow players to adopt, breed, and trade virtual chats using Ethereum. The company that was responsible for Cryptokitties, Axiom Zen went viral as the company spun Cryptokitties into Dapper Labs. 2018-2021 was the period of exponential growth of NFTs as they slowly became aware of the public, which led to their adoption by the general public.

Increasingly popular over the years under the radar, NFTs took the crypto community by surprise and by storm as there was a slow transition in mainstream art. Artist Kevin Abosch partnered with GIFTO for a charity auction for a Crypto artwork called “Forever Rose” in 2018. The partnership raised $ 1 million for the art. The very first NFT would have been created by Kevin McCoy in 2014, called “Quantum”. NFTs can be copied like anything digital. However, there will only be one person who owns that particular asset and can sell it to someone else in exchange for crypto coins or something else. If another person tries to sell a counterfeit original / NFT work, then the person is reported by the NFT community. However, NFT markets have their safety and security measures built in so that the sale of counterfeits can be stopped for good. A rule of thumb for understanding the difference between a genuine NFT and a fake NFT is that if a rare NFT is sold for a relatively cheaper price than it is supposed to be, chances are good that it is. is wrong because the price of NFT is determined by the rule of supply and demand. The rarer it is, the higher its price, ”says Arun Pandey, co-founder of Beyondlife.club. The recent phenomenon had an instant impact across India, with Bollywood megastar Amitabh Bachchan recently becoming the first actor to roll out his NFT collection on Beyondlife.club. “Technology has always fascinated me and the arrival of NFT has opened the doors to a new realm of connectivity and an opportunity to engage with my fans on a whole new level. My fans are an integral part of my journey. and the Beyondlife.club platform, I can help them gain access to some of the most cherished moments and memories of my beautiful trip. “

Actors like Kamal Hassan and Salman Khan are also joining the movement, as large companies have also started to deploy NFTs. Facebook, Nike, NBA, WWE, Twitter are some of the many organizations that have decided to roll out NFTs. The NBA sells videos of its most memorable moments as NFTs. Global stars like Lionel Messi, Gareth Bale have also joined the movement among other prominent sports figures. As NFTs grow and gain popularity across all niches, they have attracted fans, teams, etc. stay ahead and keep pace with innovations in commerce.

NFTs have succeeded in penetrating all sectors and fields which have made them more attractive to audiences around the world. There have been some notable changes with cryptocurrency and NFTs that are coming as everything has gone digital and everything is just a click away. The adoption of cryptocurrency around the world has played a major role in the exponential growth of Blockchain technology. NFTs are seen as an opportunity to monetize art for creators as well as a way to connect with their fans as the collector sees it as a way to gain bragging rights by securing ownership of works of art. authenticated art purchased directly from the artist or creator. which in turn has led to exponential growth in engagement as well as monetization, which is why the market has been inflated with the arrival of non-fungible tokens. New NFT markets are expected to arrive with WazirX, Beyondlife.Club, BollyCoin are among them.

NFTs have created their own market and are now impossible to ignore. Digital art and musical collectibles have paved the way for creators to take advantage of opportunities and grow their portfolios. Since the NFT fraternity does not differentiate between up and coming and established creators, it gives equal opportunity to both. Today, a digital creator would sell their work as an NFT rather than selling it as a GIF or maybe even a sticker. India is a new market for NFT. However, the impact of NFTs has been greater than expected. NFTs are seen as the next big thing in the digital world and that might as well be true with the buzz it has generated. “Global interest in NFTs has grown significantly over the past year. The global NFT market has a market capitalization of $ 43.08 billion as of October 25, 2021. Its trading volume is approximately $ 3.6 billion, “said Vishakha Singh, vice president and co-founder of WazirX NFT Marketplace. NFTs reached $ 150 million on the OpenSea NFT market which sells on the Ethereum blockchain. NFT’s sales also hit an all-time high when they hit a record 1.24 billion in the second quarter of 2021. India is relatively new to the market, so it will take some time for NFT to do so. its place, but NFT’s association with celebrities has already skyrocketed it and it’s only a matter of time that Indians embrace NFTs into the mainstream, much like the whole world.

Sylvia B. Polson