Non-fungible tokens (NFTs) are unique, irreplaceable, distinguishable, and tradeable physical as well as digital assets. These gained real hype on the sale of digital artworks like ‘The Merge' and ‘Beeple.' In June 2022, Bill Gates expressed skepticism regarding NFTs, likening them to the 'Greater Fool Theory' and indirectly disregarding the unnecessary hype for an overvalued asset that is being sold at a price that is more than its intrinsic value. This chapter aims to analyze if NFTs are just a matter of unnecessary hype or a real opportunity for businesses. It is based on exploratory research that justifies the real aim of NFTs, like whether it is just hype, a valuable opportunity for business houses, or a combination of both. It can be concluded that NFT being an extraordinary asset is likely to gather hype, which is capable of being turned into a business opportunity. The scope of the study is wider in the sense that it is wholly based on secondary data, which can ultimately be scope for academicians, and researchers to further implement it with primary research.
Top1. Genesis Of Nfts
In the worlds of digital art and society, non-fungible tokens (NFTs) have attracted a lot of attention recently (Lee & Kwon, 2022), but they have a much older history than most people are aware of. We will review the history of NFTs from its inception to the present and look at how this novel new technology has grown and improved over time. NFTs originally arose in the early 2000s, at the same time that blockchain technology was developing. In order to produce exclusive and non-transferable digital assets on the blockchain, the developers of the Ethereum network originally suggested the concept of a non-fungible coin in 2015. Smart contracts enabled the creation and ownership of unique digital asset, i.e., NFTs, which could be bought, sold, and traded on the blockchain (Ali et al., 2023; Okonkwo, 2021; Taherdoost, 2022).
Blockchain enthusiasts and developers who saw the potential for creating unique and valuable digital assets on the blockchain were the key early users of NFTs (Kugler, 2021; Park et al.,2022; Wang et al., 2021) . One of the initial use cases for NFTs was the creation of digital artefacts, works of art, and gaming items that could be bought, sold, and traded on the blockchain (Lamba & Malik, 2022; Nadini et al., 2021; Park et al., 2022; Trautman, 2021). One of the first and best-known examples of an NFT is the video game CryptoKitties, which was released in 2017. With CryptoKitties, a blockchain game created by the Canadian studio Dapper Labs, players could purchase, breed, and trade exclusive digital kittens because each cat was represented as an NFT on the Ethereum network. A community grew up around the game, and some of the rarest CryptoKitties sold for thousands of dollars.
Since NFTs have become so well known in recent years, many artists, creators, and public figures have hopped on board to create their own unique digital assets. Some of the more notable NFT examples include Beeple's “Everydays: The First 5000 Days” at Christie's auction, which set a record-breaking auction worth $69 million in March (2021), Grimes' “WarNymph Collection” of digital art, which sold at auction for $6 million in February (2021), and the first Twitter created by Jack Dorsey, which sold for $2.9 million in March (2021).
On the NBA's “Top Shot” NFT app, fans can buy and exchange one-of-a-kind digital basketball artefacts. In response to their sudden surge to renown, NFTs have drawn criticism and some discussion. Some people are concerned about how NFTs will affect the environment because of the significant energy required to create and exchange them on the blockchain. Some people worry that NFTs will be used for money laundering or other illegal activities. Despite these concerns, NFTs have the potential to be a revolutionary new technology for both society and the world of digital art. For artists, makers, and collectors alike, NFTs are enabling the creation of distinctive and valuable digital items that can be purchased, sold, and transferred on the blockchain.