From Cryptokitties to Digital Assets: The Evolution of NFTs

NFTs are completely revolutionizing the digital economy, bringing blockchain to the fore even more in this new web3 age. The origins of NFT started in 2014 when Kevin McCoy minted Quantum on the Namecoin blockchain. However, over the next few years, many other NFTs were established on pre-Ethereum blockchains. For instance, Spells of Genesis became the first-ever blockchain-based trading card game when it was introduced in 2015. Rare Pepes emerged in 2016, pioneering the crypto art market.

Unlike Mr Bet, these NFT projects didn’t gain widespread popularity as anticipated. They remained virtually anonymous to people except those familiar with blockchain and cryptocurrencies. The world only started to become more aware of NFTs in 2017. The first batch of NFTs was introduced on the Ethereum network around this time. Before then, blockchains made it incredibly difficult to trade and transfer ownership. The Ethereum blockchain, with its smart contracts feature, allowed token creation, storage, trading, and programming built into the network itself. The new features made the onboarding process easier and enhanced access.

Origins of NFTs

When blockchain technology started to emerge in the early 2000s, the first NFTs came out. In 2015, the creators of the Ethereum blockchain first proposed the concept of non-fungible coins as a way of creating exclusive and untransferable digital assets on the network. A smart contract called the ERC-721 standard was used to launch the first NFTs. It allowed the establishment and ownership of unique digital assets that people could buy, sell, and exchange on Ethereum. 

At first, NFTs were mainly adopted by blockchain developers and followers who saw the opportunities in developing valuable and distinctive digital assets on the Ethereum blockchain. Creating gaming objects, works of art, and digital artifacts that people could buy, sell, and trade on Ethereum was one of the original purposes of NFTs. The release of the Cryptokitties video game in 2017 made it one of the earliest and most popular examples of an NFT. Featuring a bunch of cats representing NFTs on Ethereum, Crypokitties allowed users to buy, breed, and exchange exclusive digital cats. The game gained a large community of followers, with some of the most exclusive Crytokitties going for tens of thousands of coins.

Today’s NFTs

In recent years, NFTs have become immensely popular, inspiring a variety of celebrities, creators, and artists to create their own unique digital assets. Here are some prominent cases of NFTs in recent times:

• In February 2021, the “WarNymp Collection” digital artwork created by Grimes was auctioned for $6 million.
• In March 2021, Beeple’s “Everydays: The First 5000 Days” was sold as an NFT for a record-breaking $69 million at a Christie’s sale. 

• In March 2021, The initial Twitter NFT by Jack Dorsey was sold for $2.9 million.
• On the “Top Shot” app by the NBA, fans can buy and trade special digital basketball memorabilia. 

Like a casino app, NFTs have ignited criticism and controversy thanks to their rapid rise to fame. Since creating and trading NFTs on the Ethereum blockchain can require substantial energy, some have raised concerns about NFTs’ impact on the environment. Others are concerned that unscrupulous people could use NFTs for illegal activities, including money laundering. Despite these worries, NFTs can potentially be a game-changer for the digital art field and society in general. NFTs are creating intriguing new opportunities for collectors, creators, and artists by facilitating the creation of unique, valuable digital assets that may be bought, sold, and traded on the Ethereum blockchain.

Key Timeline of Popular NFTs

Here’s a brief overview of innovative and most well-known NFTs:

• Quantum (2014). Widely considered to be the first-ever NFT created in the world.
• Spells of Genesis (2015). Marked the beginning of blockchain gaming.
• Rare Pepes (2016). Collectible cards that pioneered the crypto art market.
• CryptoPunks (2017. CryptoPunks was one of the earliest, most popular generative art projects that inspired the ERC-721 standard.
• Cryptokitties (2017). Cryptokitties was one of the original games built on the Ethereum blockchain that received mainstream media coverage.
• Axie Infinity (2018). One of the first Ethereum-based NFT games and one of the pioneers of the “play-to-earn” model.
• Decentraland (2020). The first-ever virtual world users own. Players can purchase parcels of land, and you can trade everything in-game.
• NBA Top Shot (2020). The NBA is one of the first top organizations to sell NFTs and turn memorable moments (sports clips) into digital collectibles. 
• Art Blocks (2020). Streamlined the production of generative art pieces, allowing many people access.
• Bored Ape Yacht Club (2021). Known to have started the avatar fad and cemented NFTs as a symbol of pop culture. 

The evolution of NFTs over the years has been an intriguing one, from their establishment on the Ethereum blockchain to their worldwide popularity today. Looking to the future, it’s clear that NFTs have the potential to transform the digital art world and society. We should anticipate seeing even more interesting cases of use in the coming years with the ongoing developments and innovations in the NFT world. The NFT sector is undoubtedly one to keep an eye on in the future, whether you’re a player, collector, artist, or simply into the latest, most advanced form of digital technology.