NFTs (non-fungible tokens) have exploded in popularity recently, especially for digital art. But what are the origins of this new crypto asset? When and why were NFTs first created? Let’s dive into the amazing origins and evolution of NFTs.
Born From Blockchain
NFTs stem from blockchain technology, which emerged after the 2008 financial crisis. Blockchain aimed to decentralize control away from big institutions through an immutable public ledger.
Purpose-Built Scarcity
The first major blockchain innovation was Bitcoin in 2009 – a decentralized global cryptocurrency. Ethereum, launched in 2015, built on this by allowing customizable “smart contracts” to be added to blockchain tokens.
These advancements enabled the creation of NFTs. Unlike bitcoin and other “fungible” crypto coins, NFTs are unique tokens that prove ownership of a digital asset like art.
NFTs intentionally introduce verifiable scarcity to infinitely duplicatable items like jpegs. This provides clear property rights for digital works, allowing markets to develop.
Related: “Top 7 Reasons Why NFT Art Increases in Value“
Gradual Adoption
The first NFTs emerged around 2017, often representing digital collectibles like CryptoKitties. But it took a few years for NFT art and their market potential to grab mainstream attention.
A $69 million NFT sale in 2021 served as a breakout moment. NFT markets accelerated dramatically, as did use cases spanning gaming, sports, fashion, and more. But the core vision started years earlier.
Ongoing Progress
Like any new tech, NFTs continue to evolve. Issues around environmental impact (a weak argument in my opinion), fraud, and market volatility persist. But the core promise of digital ownership shows great potential across industries.
We’re still in the early days of exploring what NFTs enable. The years ahead will further reveal how NFTs can empower artists, creators, and communities. The origin story continues. We hope this article has helped you dive into the amazing origins and evolution of NFTs.
