What Is An NFT?
Non-Fungible Tokens (NFTs) are digital assets based on a blockchain and are linked with distinctive codes and metadata to separate them from other tokens on the blockchain. These types of tokens can be used to create unique artworks, memorabilia, trading cards, and tickets for certain events.
As these tokens are non-fungible, they cannot be traded like for like. Therefore they cannot use the other standards like ERC-20 which allow for one token to trade exactly the same as another token. A new token standard was drafted, the Ethereum Request for Comments 721 (ERC-721) is the set of rules that allow these unique assets to come to life.
What Are ERC-721 Tokens?
ERC-721 is an Ethereum-based Non-Fungible Token standard that implements an API for smart contracts[1]https://ethereum.org/en/developers/docs/standards/tokens/erc-721/ allowing for defining features in an asset to be preserved. This feature would allow for the transfer of NFTs while being able to trace them back to their original smart contract address to ensure their legitimacy.[2]https://eips.ethereum.org/EIPS/eip-721
The Origins Of NFTs
The first NFT was sold for $4 in May of 2014 from Kevin McCoy to Anil Dash at Seven on Seven in NYC. [3]Seven on Seven 2014: Kevin McCoy & Anil Dash McCoy and Dash described the technology as “monetized graphics”.[4]The Atlantic, Anil Dash – NFTs Weren’t Supposed to End Like This
NFTs were widely adopted after “ERC: Non-fungible Token Standard #721” was published on GitHub on September 23rd, 2017. From there Ethereum Improvement Proposal 721 proposed by William Entriken, Dieter Shirley, Jacob Evans, and Nastassia Sachs on January 1st, 2018 evolved and brought to life the first NFTs on the Ethereum blockchain.
ERC-20 tokens were inadequate for NFTs as each asset uses this standard because they are fungible (like-for-like).[5]https://eips.ethereum.org/EIPS/eip-721 So a new standard able to support NFTs was suggested. It wasn’t until the 28th of November 2017 that the first ERC-721 Non-Fungible Token Contract was launched by Axiom Zen called CryptoKitties.
ERC-721 Tokens
There are currently 68,308 ERC-721 NFT contracts according to Etherscan. Popular ERC-721 NFT Contracts according to Etherscans NFT Tracker are:
References
