Introduction to NFTs

By Joshua Onyirimba

We at UConn FEC have previously introduced readers to the world of cryptocurrency and attempted to explain to the best of our ability blockchain technology. As a refresher, blockchain technology is the record-keeping technology behind Bitcoin. It is a type of database, that collects information together in groups known as blocks, which are chained together in such a way that anything entered on it is permanently recorded and viewable.

NFTs or non-fungible tokens are a part of the Ethereum blockchain, but other blockchains are starting to implement their own versions of NFTs. They are digital assets that can represent anything from images, videos, and GIFs. In some respects, NFTs have been around for most of the last decade, and in 2017, CryptoKitties provided consumers with a market for cartoon cat images using this technology. Since then, NFTs have grown massively in popularity with some selling for millions of dollars.

Mike Winkelmann, also known as the digital artist Beeple has sold over $100 million in digital art through NFTs. (his piece below sold for nearly $69 Million)

NBA Topshot, founded by the same people responsible for CryotoKitties is a marketplace for NFTs representing moments from NBA games. The most expensive moment sold so far was a video of Lebron James posterizing Nemanja Bjelica that went for $208,000

Though NFTs have become increasingly popular, have been presented with a few issues. The anonymity of users has led to issues with theft of intellectual property and trouble enforcing these laws. NFTs are directly linked to cryptocurrency, making the payments earned susceptible to volatility. Similar to cryptocurrencies, many fear that the NFT craze may be a bubble.