WHAT ARE NFTS? WHY ARE THEY TRENDING IN 2021?



  • What are NFTs?​

    NFT corresponds to the acronym “ non-fungible token”, which we can translate as “non-fungible token” or “non-fungible asset”, or, in other words, the meaning of NFT means that it is an asset that is unique, it cannot be modified and it cannot be exchanged for another of equal value, because there would not be an equal one. And these assets are also digital, that is, they have no correlation in the physical world (although sometimes they may).

    Why are they trending in 2021?

    Although now is when we are hearing about them the most, NFTs have been around since 2017 , when the first NFT, CryptoPunks (from Larva Labs) was launched, followed a little later by CryptoKitties, which went viral and raised more than $ 12 million.

    However, they regained popularity in 2021 because in March of this year, the Christie’s gallery auctioned the digital work Everydays — The First 5000 Days , by the artist Beeple, for $ 69 million. Or because the first tweet ever sold for $ 2.5 million.

    Suddenly, NFTs are on everyone’s lips and there is discussion about them, about their usefulness, about the speculation that is being generated around them, about the environmental impact they have (many energy resources are needed for their creation and transaction) and to what extent they are a legitimate way for artists to sell their digital works and have control over the price they put on them.

    As with Bitcoin at the time, it is happening now with NFTs, they are the hot topic, they are not without controversy and in the world of NFT art or art based on NFTs they are creating quite a stir.

    They are also a trend because they begin to discuss their usefulness beyond collecting, art and economic speculation around them; Can they be a way to certify the origin of physical products? Can they be used as a way to manage identity from anywhere in the world by applying them to passports or identity documents?