That NFTs are one of the hottest news in the finance world everybody knows, but when did NFTs were released? Although this topic has been in all finance conversations, few people truly know what an NFT is and how it is so valuable. Let’s understand what NFTs are, which are already a major revolution in the investment world.
What is an NFT?
The non-fungible tokens (NFTs) are digital cryptographic assets on a blockchain with specific and unique identification codes and metadata. Therefore, no code can be repeated. That way, each NFT is unique. That’s what non-fungible means, really. Something unique and singular that can’t be replaced or copied.
NFTs can represent many things but usually represent real-world items such as artwork, real estate, and more.
When did NFTs launch in finance?
These tokens are older than most people think. What we consider the first NFT was created in May 2014 by Kevin McCoy and Anil Dash. Its name was Quantum, a video registered on the Namecoin blockchain. The product was sold in the same year for only 4 dollars, but it changed the history of the financial world.
Of course, NFTs became popular only six years after their creation, in 2020. The pandemic helped a lot since everyone started to spend more time online than offline, but many factors are important to understand why NFTs became a hot trend almost overnight.
The first NFT project was launched in 2015, called Etheria. It was registered in the Ethereum blockchain, which was released only three months earlier than this project. That’s why so many NFTs nowadays are being released and registered in this blockchain, although some new blockchains have been created because of NFTs, such as Solana NFT.
Why are NFTs so valuable?
There are multiple reasons why NFTs are so valuable, but the most important factors are their rarity and singularity. The whole point about NFTs is them being unique. There can’t be a copied NFT because the code is exclusive to each. Even though you can duplicate the content, you can’t duplicate the token, which makes them valuable.
NFTs aren’t about their content, really. They are about their unicity. People who invest in traditional art have a problem: any painting can be duplicated. Although there’s only one original, people really don’t care if the painting they have is fake or not. However, that doesn’t happen with NFT because its value isn’t the painting but the whole.
How can I buy an NFT?
It is quite easy to buy and sell NFTs. First, you need to have a wallet where you keep your coins from diverse cryptocurrencies. Your wallet is one of the most important things you have, so make sure to create one securely and to keep its code somewhere safe. Some sites allow you to buy NFTs with credit cards, but most use cryptocurrencies since they are based on blockchains.
After you have created your wallet, all you have to do is to use a secure Solana NFT launchpad. In case you don’t know, Solana is a famous NFT blockchain that most people use these days. The launchpad is where you can check the available NFTs and make your transactions.