Non-fungible tokens or NFTs - products that function as digital assets - have grown to a $250 million (€207 million) market, according to a 2020 report from L'Atelier BNP Paribas and nonfungible.com.
According to the report, investment in NFTs grew by 299 percent in 2020.
NFTs are a special category of digital assets that cannot be traded with each other for equal value or broken down into smaller values like most digital currencies.
No two NFTs are the same, they are characterized by their unique qualities, as well as their authenticity. They often function as a kind of collectible and cannot be duplicated.
Nike, Louis Vuitton, as well as the NBA (American basketball league) have already started producing goods and services based on NFT technology.
The most popular NFT platform - NBA Top Shot - has sold nearly $270 million (€224 million) worth of unique NBA videos.
Tokens are easily verifiable and can always be traced back to the original creator. Thus, NFT token owners are able to fully own these individual digital assets knowing that they own the only token of its kind.
The value of NFTs is also based on the immutability of the product. NFTs cannot be destroyed, deleted or duplicated. The token exists only on its native platform, stored on the blockchain. Items on one platform cannot be moved to another.
Nonfungeable.com found that the number of NFT buyers increased by 66% in 2020, while the value of transactions increased from about $63 million to $250 million (€52 million to €207 million).
In 2018, major investors invested $12 million (€9.9 million) in the digital equivalent of American Beanie Babies, CryptoKitties.
source: businessinsider.com Translated with www.DeepL.com/Translator (free version)
Comments