The hype around NFT continues to grow: new projects and record deals appear every day. The news that the pixel art of a kitten has been sold for N million dollars is not particularly surprising anymore.
Let’s try to figure out what is happening: do NFTs have any value behind them or is it just another bubble that will deflate and cause losses.
NFT (Non-Fungible Token) – Non-fungible token. A type of cryptographic tokens, each instance of which is unique.
The token cannot be substituted or exchanged for another similar token, although the tokens themselves are most often fungible.
Let’s deal with fungible tokens. What can be interchangeable? Well, for example, most products are manufactured: Iphone of a certain model and color is interchangeable, consumer goods, like a carton of milk, too.
The same will be applicable for fiat money: 100 rubles or dollars can be easily replaced.
The first NFTs began to appear back in 2013, although these were rather isolated experiments on the Bitcoin blockchain. The first high-profile project was made on the Ethereum blockchain – a game where you could buy a piece of land in the form of a pixel TON blockchain.
In 2016, the high-profile PixelMap project appeared , a distinctive feature was that the images were stored directly on the blockchain. The logic of the project was the same – buying pixels and placing images on them.