Did You Know How NFTs Came About?

Perhaps most (if not all) of us around here have heard of Non-Fungible Tokens or NFTs. Some might even have minted a few of them, been gifted with or have read about them. But did you ever think how it all started? Who invented or created it? Who was the first to mint one and what was it?

I personally got curious as the thoughts came in and could not pass the chance to check and get some answers. Today's post is to share some of the things I have found out.

Brief History & Timeline

According to a cointelegraph article, the inception of Bitcoin-based colored coins in 2012–2013 with the idea that originated from a paper written in 2012 by Meni Rosenfield (Founder of Bitcoil) have paved the way for the evolution of digital tokens on the Bitcoin network because Ethereum was not created yet at that time.

"Colored coins" were introduced as the class of methods for representing and managing real-world assets on Bitcoin. However, the project was pushed to the background when smart contracts and more advanced NFT ideas came around. _(Source)

2014 First NFT was minted

Digital artist Kevin McCoy was said to have minted the very first NFT called Quantum on the 3rd of May 2014. It was a short video clip of his artist wife, Jennifer. He minted the clip on the Namecoin blockchain. The lead image above is the Quantum.

_{(Quantum, the first NFT. Courtesy of MccoySpace)}

The problem at that time was he didn't know how to establish the provenance of a digital piece of art. So he joined forces with Anil Dash, a tech entrepreneur.

McCoy and Dash were paired at Seven on Seven conference where 7 leading artists get partnered with 7 influential technologists in teams of two and they were challenged to create something in the course of one day. The pairs stayed up all night to create a working prototype that they then show to an audience.

Kevin and Anil made their demo and called it "monetized graphics" where Mccoy sold a digital GIF NFT to Dash for $4 onstage. _(Source)

• Click here for the video of their live demo. Fast forward to 20:36 if you want to watch the selling and paying act.

2015

The first NFT project and virtual world game called Etheria was launched and was displayed in DEVCON London, three months after the launch of Ethereum Mainnet. _(Nofu)

Etheria is composed of hexagonal tiles, and players can buy and sell land, build structures, and interact with other players. Most of Etheria's 457 purchasable and tradable hexagonal tiles went unsold for more than five years until March 13, 2021, when renewed interest in NFTs sparked a buying frenzy. _(Wikipedia)

2016

Spells of Genesis, a blockchain-based mobile game launched in September 2016 and stands as the first-ever blockchain-based game. It combined Trading Card Game (TCG) functionalities with the point-and-shoot aspects of arcade games.

Also, in September 2016, Rare Pepes which are digital collectible cards, came out. "They stand as one of the first art experiments on the blockchain, helping spawn the early crypto art movement." _(Quoted)

_(src)

2017

The term NFT gained momentum when the blockchain protocols introduced an ERC-21 standard that promoted the issuance of NFTs on Ethereum blockchain where the first NFT collections were launched which enabled token creation, programming, storage, and trading built directly into the blockchain itself. _(NFTNow)

On the same year, CryptoKitties were launched by Dapper Labs. This was the first widely-recognized implementation of NFTs. _(Web3)

In June of 2017, CryptoPunks launched by Larva Labs founders, Matt Hall and John Watkinson. The collection is one of the most popular NFTs of today and many of its pieces had been sold by millions of dollars.

_(src)

2018

In October 2018, Axie Infinity, the NFT-based battle game was released. It set the ball rolling for play-to-earn (P2E) games, which enabled gamers to earn in-game rewards while playing. It’s a pioneering video game on the Ethereum blockchain involving Axies, rare NFTs with unique attributes. _(Source)

2019

Binance issued a limited edition NFT called "Exchange the World 2019 NFT" as part of its Collectibles Series 1. This was given away as a prize to 10 lucky winners on a Twitter or Facebook activity in December 2019.

2020

Then NFT gaming and metaverse projects came around. A major project during this time was Ethereum-based Decentraland, a virtual world that allows players to explore games and build and collect assets. _(Source)

_(src)

In October 2020, NBA Top Shot launched and Art Blocks followed a month later.

According to Decrypt, NFTs gained mainstream attention and popularity, with many high-profile sales and auctions, including the sale of Beeple's artwork for $6.6 million. The NFT market cap grew nearly ten times between the years 2018 and 2020.

2021

Bored Ape Yacht, a collection of 10k unique NFTs came out. On the same year, sales of NFT is still massive and auction houses including Christie’s and Sotheby’s joined the party. NFTs were selling in millions of dollars.

_(src)

2022

Accordingly, 2022 was a year of exploration for NFTs, with new projects and uses emerging to test how transformative the technology can be. From the proliferation of new profile picture (PFP) collections to exploratory forays in fashion, music, entertainment, gaming, and metaverse experiences, these new ideas and experiments saw numerous successes and failures. _{(Quoted from Forbes)}

Big names and brands such as Starbucks, Instagram, Nike and Reddit, along with luxury marks like Burberry, Gucci, Louis Vuitton, Dolce & Gabbana and Salvatore Ferragamo also joined the craze.

At present, Non-Fungible Tokens (NFTs) are still seen as a viable investment option despite the decline in sales. Apparently, the number of NFT-focused investment companies that buy and sell NFTs on a large scale is growing.

In Summary

I have not been able to find who came up with the term NFT but it's amazing how it came to be. They may have been unimaginable years or decades ago but look at how they have evolved over time!

There's Ordinal Inscriptions (digital assets inscribed on the Bitcoin network), then there is Ethscriptions which have just recently launched on Ethereum. NFT is still at its infancy and it will surely grow and more of its potentials will be discovered and it may even go beyond the fields of art and collectibles.

As the NFT market continues to mature, I believe more use cases and applications will emerge. The possibilities are endless and there's a lot more room for growth, opportunities and innovation.

_{Disclaimer: For infotainment only.}

_{Images sourced as acknowledged. Lead photo edited on Canva. 27062023/09:20ph}

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