In an earlier article, we answered the question, What are NFTs and how are they made? In this article, we will continue exploring more questions about NFTs like, How did NFT become popular, and where did their journey begin? Read on, and find the answers below:
A Short History of NFTs
NFTs first emerged in 2014, according to the World Economic Forum, and were initially embraced by tech enthusiasts. The very first NFT, titled Quantum, was created by artist Kevin McCoy. He collaborated with entrepreneur Anil Dash to explore the idea of linking digital collectible art to the blockchain, making it verifiable and collectible. They originally called these “monetized graphics,” or “monegraphs.” McCoy’s Quantum was initially listed for $100, but years later, it sold for an astonishing $1.5 million at Sotheby’s auction house.
How NFTs Gained Popularity
So how did NFT become popular? NFTs truly broke into the mainstream 2021, when digital artist Beeple sold a piece for over $69 million, sending shockwaves through both the tech and art worlds. This sale, along with others, fueled a buzz that led to “NFT” being named the Word of the Year.
The COVID-19 pandemic also contributed to the rise of NFTs. With more people spending time online, virtual communities—especially on platforms like Twitter—saw an explosion in NFT-related activity. High-profile figures further fueled interest. For example, whistleblower Edward Snowden sold his NFT Stay Free for $5 million, and Twitter co-founder Jack Dorsey sold his first tweet as an NFT for $2.9 million.
Before all of these notable achievements, however, Sarah Meyohas released Bitchcoin, which as considered the first tokenization of art on the blockchain. Since then, many other artists have been inspired by her methods and started creating unique digital artwork on the blockchain.
Benefits and Challenges of NFTs
By 2024, the NFT market is expected to grow to nearly $684 million. Despite this rapid growth, the technology is still in its early stages, and several challenges remain.
One concern is accessibility. Many artists who are less familiar with technology may struggle to enter the NFT space. Legal experts are also grappling with how to adapt copyright laws to protect both artists and buyers in this new digital landscape. Environmentalists, too, have raised alarms about the energy consumption required to maintain the blockchain, which often relies on energy-intensive server farms powered by fossil fuels.
However, progress is being made. Companies like Bitmark have developed systems that allow music producers to retain rights and royalties for their work. This direct connection between creators and consumers eliminates the need for intermediaries and empowers artists to earn more from their creations.
The Future of NFTs
NFTs are still evolving, and as with any new technology, there are growing pains. Laws will need to be adapted or created to protect everyone involved. But despite these challenges, NFTs are already having a major impact on how we buy, sell, and experience art in the digital world—something that will only become more significant as we spend more of our lives online.
