NFT directs here. For other uses, see NFT (nonsense).
A fixed token (NFT) is an immutable unit of information stored in a blockchain, a form of digital book, and can be traded and traded.  Types of NFT datagrams can be associated with digital files such as photos, videos and audio. NFTs are different from blockchain cryptocurrencies like Bitcoin because each token can be uniquely identified.
NFT books claim to provide a certificate of authenticity or proof of ownership, but the legal rights transferred by NFT may be uncertain. NFTs do not restrict the sharing or copying of key digital files, do not necessarily transfer the copyright of digital files, and do not prevent the creation of NFTs with the same related files.
NFTs have been used as speculative assets and have been criticized for their energy costs and carbon footprint in connection with the approval of blockchain operations, their frequent use in art scams  and arguments that the structure of the NFT market is Ponzi. . scheme.
3.1 Early history (2014–2017)
3.2 Increasing public awareness (2017-present)
4.1 Commonly associated files
4.1.1 Digital art
4.1.5 Other associated files
4.3 Money laundering
4.4 Other uses
5 Standards in the blockchain
6 Issues and criticism
6.1 Off-chain storage
6.2 Environmental concerns
6.3 Artist and buyer fees
6.4 Plagiarism and fraud
6.6 Pyramid/Ponzi scheme claims
7 in popular culture
8 See also
10 External links
NFT is a unit of information stored in a digital ledger called a blockchain that can be traded and traded.  NFT can be associated with a specific digital or physical asset (such as a file or physical object) and with a license to use the asset for a specific purpose.  NFT (and, if available, a related license to use, copy, or display a fixed asset) can be traded in digital markets.  The illicit nature of NFT trading often results in the informal exchange of ownership over an asset without any legal basis for enforcement,  often yielding little to no use as a status symbol. 
NFTs act as cryptographic tokens, but unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs cannot be exchanged, so they cannot be exchanged. Although all bitcoins are equal, each NFT can represent a different underlying asset and therefore have a different value.  NFTs are created when blockchains compile records of cryptographic hashings, a set of characters describing a data set, on top of previous records, and therefore create a chain of identifiable data blocks.  This cryptographic transaction process validates each digital file by providing a digital signature used to track NFT ownership.  However, information connections that point to details, such as where the art is stored, can be affected by the decay of the connection. 
Ownership of NFT does not transfer copyright or intellectual property rights to a digital asset represented by a trademark.   Although one can sell NFT representing his work, when the ownership of NFT changes, the buyer does not necessarily receive copyright privileges, and therefore the first owner is allowed to create more NFT than the same work.   In this sense, NFT is only proof of ownership other than copyright.   According to lawyer Rebecca Tushnet, “In a sense, the buyer gets everything the art world thinks he has. He does not own the copyright of the main work unless it is made public.” 
Early history (2014–2017)
The first known “NFT” was a video clip created by Quantum  Kevin McCoy and Anil Dash in May 2014 and produced by McCoy’s wife, Jennifer. McCoy recorded the video on the Namecoin blockchain and sold it to Dash for $ 4 during a live presentation of the Seven on Seven conference at the New Museum in New York. McCoy and Dash called the technology “money-making graphics.”  The immutable, marketable blockchain symbol is explicitly linked to the work of art through metadata on the chain (activated by Namecoin). This is in stark contrast to other blockchains and the Opposite’s very uniform, interchangeable, metadata-free “colored coins.” 
The first NFT project, Etheria, was launched in October 2015 and was unveiled at DEVCON 1 in London, Ethereum’s first developer conference, three months after the launch of the Ethereum blockchain. Most of Etheria’s 457 buyable and marketable hexagonal plates have not been sold for more than five years until March 13, 2021, which has caused renewed interest in buying NFTs. Within 24 hours, all tiles of the current version and the previous version, each coded with 1 ETH (initially $ 0.43), were sold for a total of $ 1.4 million. 
The term “NFT” first coined the ERC-721 standard proposed by Ethereum GitHub in 2017, after various NFT projects were launched that year.   Standard Curio Cards coincided with the launch of several NFT projects, including CryptoPunks (a unique cartoon character trading project published by American studio Larva Labs on the Ethereum blockchain)   and rare Pepe trading cards .
Raising public awareness (2017-present)
The 2017 online game CryptoKitties made money by selling marketable cat NFTs, and its success drew public attention to NFTs. 
The oil market experienced rapid growth in 2020, and its value tripled to $ 250 million.  In the first three months of 2021, more than $ 200 million was spent on oil. 
In 2020, the US Patent and Trademark Office received three trademark applications for NFTs.  In 2021, the number of trademark applications exceeded 1,200.  In January 2022, the US Patent and Trademark Office received 450 trademark applications related to NFT.  The growing list of brands that are trademarks of NFT includes NYSE, Star Trek, Panera, Walmart, Elvis Presley, Sports Illustrated, Ticketmaster and Yahoo. 
In the first months of 2021, interest in NFTs increased after a series of high-level sales and art auctions. 
4.1 Commonly associated files
NFTs have been used as a means of exchanging digital tokens associated with a digital file. Ownership of NFT is usually associated with a license to use the underlying digital asset, but generally does not give the buyer copyright. Some agreements only license for personal, non-commercial purposes, while other licenses allow the commercial use of a major digital asset. 
Some digital art NFTs, such as these pixel art symbols, are examples of generative art.
Digital art is a common use for NFTs.  The high-profile auctions of NFTs related to digital art have aroused great public interest; artist Pak’s “Merge” became the most expensive NFT in 2021 with $ 91.8 million  and Everydays: First 5000 Days, artist Mike Winkelmann (professionally known as Beeple), $ 69.3 million.   ]
Some NFT collections, including EtherRocks and CryptoPunks, are examples of generative art that can create many different images by combining different simple image components in different combinations. 
In March 2021, the blockchain company Injective Protocol purchased a $ 95,000 original silkscreen called Morons (White) from British graffiti artist Banksy, filmed someone burning it with a lighter, videotaped it, and sold it as NFT.   An artist destroyer calling himself “Burnt Banksy” described the move as a way to transfer a work of physical art to the NFT field. 
Tina Rivers Ryan, an American curator and art historian who specializes in digital art, said she was not entirely convinced that art museums represented the “sustainable cultural relevance” of NFTs.   Although auction houses such as Sotheby’s and Christie’s and various museums and galleries around the world have collaborated with digital artists such as Refik Anadol, Dangiuz and Sarah Zucker, no central identity has been established to prevent sales. like NFT of stolen and counterfeit digital works. verification tool not available. NFTs associated with digital works of art (via NFT platforms) and NFTs that display these works of art (related to relevant NFTs) both in virtual galleries and on real-life screens, monitors, and television.   
Main article: Blockchain game
NFTs can be used to represent in-game assets, such as digital land plots, which some commentators say are more “user-driven” than the game developer . permission of the game developer. 
CryptoKitties was an early successful blockchain online game in which players adopted and traded virtual cats. The NFT’s in-game earnings increased its investment by $ 12.5 million, with some cats being sold for more than $ 100,000 each.    Following its success, CryptoKitties was added to the ERC-721 standard, created in January 2018 (and completed in June).   A similar NFT-based online game, Axie Infinity, was released in March 2018.
In October 2021, developer Valve banned applications using blockchain technology or NFTs from Steam platforms to exchange value or game artifacts. 
In December 2021, Ubisoft announced Ubisoft Quartz, an “NFT initiative that allows people to buy artificially scarce digital items using cryptocurrency.” The ad received significant criticism with a 96% disapproval rate compared to the YouTube ad video, which has not been listed since.   Some Ubisoft developers have also expressed concern about the announcement.    The 2022 annual report of the Game Developers Conference states that 70 percent of developers surveyed said they were not interested in integrating their studios’ NFT or cryptocurrencies into their games.  
Some luxury brands have released NFT for online video game cosmetics.  In November 2021, Morgan Stanley published a memo proposing that this use could become a multi-billion dollar market by 2030. 
In February 2021, NFTs reportedly earned about $ 25 million in the music industry, with artists selling works of art and music as NFT trademarks.  On February 28, 2021, the electronic dance musician sold 33 NFT collections for a total of $ 11.7 million to celebrate the three-year anniversary of the 3LAU Ultraviolet album.   On March 3, 2021, NFT was held to promote the album Kings of Leon, When You See Yourself.    Other musicians who have used NFT include American rapper Lil Pump,    Grimes,  producer Mike Dean,  and visual artist Shepard Fairey, who worked with rapper Eminem.
In May 2018, 20th Century Fox partnered with Atom Tickets and released a limited number of Deadpool 2 digital posters to promote the film. They are available through the OpenSea and GFT exchanges.   In March 2021, Adam Benz became the first Claude Lanzmann: Shoa’s Nightmare to be auctioned as NFT in 2015. 
Other projects that use NFT in the film industry include Godzilla vs. Kong  announces the release of an exclusive NFT art collection, and director Kevin Smith announces that his upcoming horror film Killroy Was Here will be released as NFT in April 2021.  The 2021 film Zero Contact, directed by Rick Dougdale and starring Anthony Hopkins, was also released as NFT.  
In April 2021, NFT was released as the first NFT for the soundtrack of the film “Victory”, composed by Gregg Leonard. 
In November 2021, film director Quentin Tarantino released seven NFTs based on uninterrupted scenes from Pulp Fiction. Miramax later filed a lawsuit alleging violations of film rights. 
Other related files
A number of internet memes have been linked to NFTs published and sold by their creators or subjects.  Examples include Doge  and Charlie Bit My Finger,  Nyan Cat   and Disaster Girl , which depict a Shiba Inu dog.
Some virtual worlds, often marketed as metaversions, combine NFTs as a means of trading virtual goods and virtual real estate. 
Some pornographic works were sold as NFT, but the hostility of NFT markets to pornographic material presented significant shortcomings for creators.  
In May 2021, UC Berkeley announced that he would be auctioning off NFTs for patents for two Nobel Prize-winning inventions: CRISPR-Cas9 gene editing and cancer immunotherapy.  Since NFTs belong only to the university’s patent disclosure form, the internal form used by the university to disclose inventions to researchers, the university will continue to hold patents for these inventions. 
The first credible political protest was NFT (“Destruction of a Nazi Monument Symbolizing Modern Lithuania”), drawn by Professor Stanislovas Thomas on April 8, 2019, and published on March 29, 2021. In the video, Thomas Jonah, a Nazi war criminal at the Lithuanian Academy of Sciences
ERC-721  was the first standard to represent fixed digital assets in the Ethereum blockchain. ERC-721 is a legacy Solidity smart contract standard; this means that developers can create new ERC-721 compliant contracts by copying from the reference application. The ERC-721 provides a path that allows the owner to transfer the asset to others, as well as basic methods that allow the owner of the unique identifier to be tracked. 
The ERC-1155 standard provides “semi-convertibility” (meaning that an ERC-721 object can be created using ERC-1155), as well as an analogue of the ERC-721 functionality. Unlike ERC-721, where a unique ID represents a single asset, the unique ID of an ERC-1155 token represents an asset class and has an additional amount field that reflects the amount of the class belonging to a particular wallet.  Assets belonging to the same class can replace each other and the user can transfer any amount of assets to others. 
Bitcoin Cash supports NFTs.  
With the March 2021 update, Cardano introduced local tokens that allowed NFTs to be created without smart contracts. 
Using a proven consensus model, the Flow blockchain supports NFTs. CryptoKitties announced plans to move from Ethereum to Flow “in the near future” in March 2021. 
The Solana blockchain also supports non-trading tokens. 
Tezos is a blockchain network that works on proof-of-stack and supports the sale of NFT art. 
Problems and criticism
Problems and criticism
NFTs that contain digital art generally do not store a related image file in the blockchain due to their size. The token is more like a certificate of ownership, the web address refers to the work of art in question, and still exposes the art to link decay.  Because NFTs are functionally separate from the main work of art, anyone can easily save a copy of an NFT image with a simple right-click. Proponents of NFT describe this iteration of NFT artwork as a “right-click mentality,” and a collector quoted by Vice compares the value of the purchased NFT to the value of the status icon “to show they can afford it.” 
After the introduction of the term “right-click mentality,” it became viral, especially among critics of the NFT market, and they used the term to describe the ability to easily draw NFT-supported digital art.  This criticism was supported by Geoffrey Huntley, an Australian programmer who created The NFT Bay, modeled after The Pirate Bay. NFT Bay advertised a torrent file that allegedly contains 19 terabytes of digital art NFT images. Huntley compared his work to Pauline Pantsdown’s art project and hoped the site would help educate users about what NFTs are and what they are not. 
See also: Environmental impact of cryptocurrencies
Oil purchases and sales have been the subject of controversy over high energy use and greenhouse gas emissions associated with blockchain operations.  An important aspect of this is the work-proof protocol required to regulate and verify blockchain operations in networks such as Ethereum, which consumes large amounts of electricity;   networking of various hypotheses about the economic behavior of blockchain miners (and energy requirements of mining equipment)  and the amount of renewable energy used in them.  There are also conceptual questions as to whether the carbon footprint estimate for NFT purchases covers part of the main network’s ongoing energy needs, or whether this purchase covers only the marginal impact.  The analogy explained for this is the footprint associated with an additional passenger on a particular airline flight. 
Some new NFT technologies use alternative verification protocols, such as proof-of-stack, that consume less energy for a given inspection period. Other approaches to reducing electricity include the use of off-chain operations as part of NFT printing.  A number of NFT art sites are also trying to address these concerns, with some using technology and protocols with fewer traces.  Others now allow the option to purchase carbon offsets when purchasing NFT, but the environmental benefits are questionable.  In some cases, NFT artists have decided not to sell part of their work to limit carbon emissions contributions. 
Artist and buyer fees
Sales platforms charge artists and buyers a fee for drums, lists, claims, and secondary sales. In March 2021, immediately after Beeple’s “Everydays: the First 5000 Days” sold for $ 69.3 million, an analysis of NFT markets showed that most NFT works of art cost less than $ 200 and a third for less than $ 100. sold.  These. Sales below $ 100 paid the platform fee from 72.5% to 157.5% of that amount. On average, payments make up 100.5% of the price, meaning that such artists pay more on average than they earn from sales. 
Plagiarism and fraud
There have been cases where artists’ works have been sold as unlicensed oil by others.  After the death of the artist Qing Han in 2020, his identity was accepted by a fraudster, and some of his works could be purchased as NFT.  Similarly, a dealer posing as Banksy was able to sell the artist’s alleged NFT in 2021 for $ 336,000; In this case, the seller’s refund attracted the attention of the media after the trial. 
Plagiarism The general ease of creating NFT research, combined with the anonymity of NFT printing, made it difficult to take legal action against NFT plagiarism. 
A process known as “sleepminting” can also allow a scammer to print NFT in an artist’s wallet and transfer it back to the artist’s account without his or her knowledge.  This allowed the white-cap hacker to print fake NFT visible from artist Bipple’s wallet. 
Plagiarism has led DeviantArt art website to create a bot that compares and contrasts user art with art in popular NFT markets. If the bot finds a similar work of art, it will alert the user and tell the user how to contact the NFT markets to ask them to eliminate plagiarism. 
Some NFT markets responded to plagiarism by setting up “extraction teams” to respond to artist complaints. The NFT market has rules against OpenSea plagiarism and deep fraud (labeling them as explicit images without consent). Some artists have criticized OpenSea’s current efforts to combat plagiarism, saying they have been slow to respond to the abolition requirements and have been scammed by users claiming to be representatives of the platform.  Others claim that there is currently no market incentive for NFT markets to put pressure on plagiarism. 
The BBC reported on insider trading when the NFT market learned that an employee of OpenSea would be promoted on the company’s homepage before purchasing certain NFTs. The NFT trade is an unregulated market, and there is no legal basis for such abuses. 
In an announcement to develop NFT support for the Photoshop graphics editor, Adobe suggested creating an Interplanetary File System database as an alternative way to create authenticity for digital works. 
The price paid for certain NFTs and the sales of a particular author may be artificially inflated due to the widespread laundry trade due to the lack of government regulation of NFTs.  
In January 2022, some NFTs were reportedly used by the vendor to verify a user’s IP address. 
The Pyramid / Ponzi scheme claims
The structure of the NFT market is somewhat similar to the pyramid or Ponzi scheme, in which those who apply early gain at the expense of subsequent buyers. 
in popular culture
The comedy sketch for the March 27, 2021 episode of Saturday Night Live featured characters explaining NFTs through rap to US Treasury Secretary Janet Yellen, played by Kate McKinnon. 
The 2021 Paramount + TV movie South Park: Post Covid: The Return of Covid tricked the older version of Butters Stotch into buying NFT in 2061 as Professor Chaos. The film portrays them as a bad investment, and the chaos grew so subtle while selling them that he was imprisoned in a mental institution. 
List of the most expensive unsold tokens
Decentralized autonomous organization
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