A token is the equivalent of security within the digital world. Many tokens are interchangeable, like $one hundred notes. They can be used as currency.

There are also half-interchangeable tokens. They’re related to each other but have their own distinctive feature. An instance is cinema tickets. Their worth is the same, but the seats in the cinema are indicated differently.

One other type of token is non-interchangeable tokens or NFTs.

In broader terms, NFT is a technology that permits you to secure ownership of any digital art object: digital artwork, a music album, a tweet with good jokes, virtual cats, animated stickers, your own game universes, domains, digital land and real estate for big sums of money. That said, every NFT token is unique. It can’t be reproduced.

By the way, the last record sale of NFT tokens was in March 2021. At the moment, the NFT-linked JPG file of artist Mike Winkelmann, Beeple’s Everyday: The First 5000 Days, sold for 69.3 million.

How did it all begin?

In 2014, the world’s first non-interchangeable token was created by artist Kevin McCoy together with programmer Anil Dash. It was a novel and indivisible coin that could not be replicated.

Kevin McCoy tied his animated Quantum art to NFT and sold it in 2021 for $1.4m at a Sotheby’s auction.

In 2017, the CryptoPunks project emerged.

CryptoPunks are one of the first examples of ‘non-interchangeable tokens’ in Ethereum. CryptoPunks was the inspiration for the ERC-721 standard. It’s the one which supports most digital artwork and gatherables.

In truth, every graphic image of a face was linked to a piece of pc code in the blockchain platform. That is, it had a unique token the place information about the owner of the image was stored. And while anybody could download the image, the owner was the particular person whose Ethereum wallet was listed within the image NFT.

It’s possible you’ll ask: what is the level of owning an image that anyone can download from the Internet, print or ship to anybody? You may understand this by looking at artworkworks in museums.

Let’s take a visit to the Louvre in Paris, one of the most visited museums in the world. When I was in Paris, I visited it too.

Let’s take a look at the “Mona Lisa” by Leonardo da Vinci.

Anyone should buy a reproduction of “Gioconda” and hold it in their room. But there may be an unique which is kept in the Louvre. It has an owner. And the more well-liked the painting, the more of its replicas are created, the more often it is replicated, and the higher the worth of the original. And the more the owner wins.

By the way, the worth of this explicit image ranges from 850 to 2.5 billion U.S. dollars. In this case, the insured value, in response to records in the registers of the Louvre, is a hundred million euros. Not quite a bit?

The situation is just like NFT tokens. Digital and virtual objects may also be valuable, rare and trendy. They may well turn into a collector’s item and a terrific investment. The same applies to gaming: gamers can collect virtual artefacts from completely different games and trade them for something valuable, too.

Who sells and buys NFTs?

Anyone can sell and purchase digital art and different objects. However when the hype started, and the demand for NFT tokens increased, big players — world-well-known galleries, public sale houses, production corporations and individual museums — stepped in to purchase and sell.

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