Non Fungible Tokens (NFTs) are certificates of authenticity, used for digital trade activities as an alternative for normal cash, or bitcoins.
Just like physical certificates, NFTs are used to represent ownership of items, with the added benefit of easy verification.
Since the storage of these digital documents is based on blockchain technology, security is guaranteed, because it is almost impossible to manipulate them, hence eliminating the risk of fraud or double ownership. The most popular NFT blockchain is Ethereum.
NFT technology can be traced as far back as 2012 when Yoni Assia created Coloured Coins.
Although the coins ran on bitcoin technology, their purpose was to serve as ownership certificates.
Although Coloured Coins were short-lived, they set experts on the right path towards stabilizing the NFT platform.
In 2014, Counterparty, a platform following in the footsteps of Coloured Coins was launched, still based on the bitcoins system.
It was, however, better modified and served as the exchange platform for ownership of Pepe the Frog memes.
After three years, developers shifted system focus from Bitcoin to Ethereum, which is where NFTs, as we know them today, emerged.
The tokens are popular in the trade of digital collectibles such as images, GIFs, music, videos, and other forms of artwork.
Examples of such digital products that have thrived in the NFT market space include cryptopunks, with the highest selling one so far hitting the 7.6$ mark (Sh833M), as well Cryptokitties.
Twitter CEO Jack Dorsey’s ongoing auction of his first-ever tweet has once again put NFTs in the spotlight.
As we speak, the highest bidder for the tweet “just setting up my twttr” has offered $2.5M (Sh274M), and whoever bids the highest will get an NFT for the tweet’s ownership.
