The emergence of Bitcoin introduced the idea of trustless digital scarcity. With the advent of blockchain technology, digital scarcity has become possible and is being used for linking the digital world with the real world. Non-fungible tokens (NFTs) are based on a similar concept. The value of an NFT depends on the quality, scarcity and mainly rarity. It is a type of cryptographic token that depicts a unique asset. Those assets can be either complete digital assets or tokenized versions of real-world assets.
NFT uses Blockchain to link with a digital asset that no one can duplicate. Since they are not interchangeable, they may prove ownership and authenticity within the digital world.
NFTs have become one of the critical building blocks of a new Blockchain-enabled digital economy. Numerous use cases of NFTs in different domains are being developed and tested, such as crypto art, gaming, finance, digital identity, insurance, certificates and licensing.
The increasing popularity of NFT tripled the market size and reached over USD 250 million in just a year, 2020. NFT has started its year 2021 even at a higher pace; the active wallets are more than double now. People have already started buying and selling NFTs online. On February, 8th, 2021, a buyer had purchased an NFT that included nine plots of Genesis land in Axie Infinity virtual world. Its worth was $1.5 million at the time of purchase. The deal was recorded as the most prominent digital land sale. Therefore, in the coming years, virtual economies will be the new normal for an advanced digital world.
jessica W. bergstrom 