#01. Can you believe a single paper card with a sports player printed on it sold for $2.7MM?
#02. Why do people go wild for a piece of paper? The value of a limited product is very attractive.
#03. Recently, the digital market also began to reflect this collection trend.
#04. In the center of this paradigm shift is the NFT. Here are more details about NFTs.
#05. NFT stands for non-fungible token. It is a unique token that is non-exchangeable in any form.
#06. NFT implementation attaches an invisible barcode to digital content such as images, videos, music, and games.
#07. The barcode records information about the creators, owners, and transaction histories in real time, via blockchain.
#08. That’s the reason NBA TopShot, a digital card with video highlights of NBA players, is a steady seller in the United States.
#09. Besides benefiting from a durable nature, with unlimited accessibility via smartphones, NFT-implemented digital cards also grant owners certified authenticity.
#10. Digital products previously had no such value of authenticity, since they were easily copied without limit. It was very different from owning an original artwork by Leonardo da Vinci or Pablo Picasso.
#11. But let’s say, for example, that a digital cat image has an initial NFT.
#12. We can easily generate copies of the cat image by simply copying and pasting, and we can even implement new NFTs with them.
#13. The innovation of the NFT is in recording the abovementioned information. People can find that information and distinguish the original from a copied image.
#14. NFTs have gained value as people demand more scarce products.
#15. Larva Labs’ CryptoPunks NFT in 2017 is a case study.
#16. CryptoPunks are avatar images of random genders, species, appearance, outfits, and so forth.
#17. The scarcity and value of these avatars increased as a number of celebrities and influencers shared their avatar images on Twitter and other social media platforms.
#18. An alien avatar of which only nine out of 10,000 avatars existed sold for $23.7MM.
#19. This proves the value of NFTs as an investment asset, thanks to the consumption and bragging trend.
#20. This trend recently encroached into broader fields beyond digital art, especially online sports and in-game item trading.
#21. Only in 2021 did NFTs move into the global spotlight. That means we are only familiar with one aspect.
#22. Its strong influence reflects the dynamics of our society, and it seems the sky will be the limit.
#23. NFT data research firm NonFungible reported that NFT asset size quadrupled, from $62MM in 2019 to $250MM in 2020. In 2021, it exceeded $10B.
#24. NFT now leads the digital market industry, and we all are looking forward to what’s coming next in NFTs.
COPYRIGHT ⓒ 2019 KOREA DEVELOPMENT INSTITUTE. ALL RIGHTS RESERVED.