NFTs also known as Non-Fungible Tokens are virtual items created that consist of digital data which is stored using blockchain technology. Ownership of an NFT can be transferred through the specific marketplace where they are sold and traded.
NFTs are different from other cryptocurrencies like Bitcoin and Ethereum because they are not mutually interchangeable. NFTs are categorised as cryptographic tokens and they are non-fungible.
The first NFT was created on the 23rd of May 2014. Kevin McCoy created ‘Quantum’ which was a digital image of a pixelated octagon that would change its colour and would even pulsate like an octopus. ‘Quantum’ was minted on the Namecoin blockchain.
The year 2017 up until 2020 is when NFTs started going mainstream. The hype for it grew at an exponential rate. During this time period, the introduction to NFT gaming began with the creation of CryptoKitties. This was a game that would allow you to adopt, care for, breed, and trade virtual cats. These cats could then also be stored in virtual wallets. This game’s popularity grew until it clogged the Ethereum blockchain and people made huge amounts of profit.
The value of an NFTs differs from other cryptocurrencies that are all valued the exact same, the value of NFTs is determined by what they are representing or their assets. This makes the value of NFTs vary greatly.
Each NFT’s value will depend on what application it has. Ownership of the NFT may not mean ownership of the said asset but it could be used to represent a few things. For example, real estate, minerals, or virtual items like virtual land and game assets. The concept of NFTs is still relatively new, concepts and policies may differ over time.
The Instability of NFTs
As mentioned above, the value of NFTs are not fixed. This is because the value of these creations is based on their market specifics. Some NFTs are tied to brands while some are name-fame. If the creator has no fame (clout) the NFT is made or bought to shoot up the work value of said creator. This lack of consistency is one of the few main reasons that there is a decent amount of people that do not like the idea of NFTs.
Uses of NFTs
Music – The knowledge of blockchain technology has made its way to music artists, one of the main ways artists are using NFTs in the music industry is that they are making NFTs of songs and then proceeding to sell them on the NFT marketplace.
NFT are also used to reward fans. They could be used as live event tickets or even give the owner of the NFT exclusive privileges like early access to new songs.
Film – Although there are a lot of benefits for NFT to be introduced into the film world but there are also limitations, like the storage limitations of legacy blockchain technology. But as the years went by and technology improved, Enderby Entertainment’s Zero Contact became the first film to be released as an NFT and released it into their own blockchain, Vuele.io.
The idea of releasing a film as an NFT may be uncommon but the inclusion of other methods of utilizing NFTs are to use them as a means to fund film production. It is a more popular approach to fundraising concepts and models.
NFT Scene in Malaysia
In Malaysia, the NFT scene is growing too. Although the value or production of NFTs in Malaysia may not be much, there are still multiple Malaysia-based artists that have made their marks not only locally but internationally as well. If you are looking for nft collectibles news update malaysia, you could look into websites like nft.my and nfteller.io. You can see and read details about these artists.
KATUN is a graffiti artist who then made a name for himself in the United States and has worked with many artists like Chris Brown and Post Malone while also being able to get the opportunity to walk with big named brands like Vans, Oppo and Footlocker just to name a few. His maiden NFT was released with SuperFarm and was a huge success; he made 127.6ETH which can be converted to almost 450,000 USD in just one day.
Malaysians are relatively 50-50 when it comes to the idea of getting into NFTs and Cryptocurrencies. One half which has more of the younger generation is interested and knowledgeable about NFTs while the other half are just sceptical about how the value of NFTs and the over-hype behind NFTs are not enticing enough for them.
In 2022, on May 21st, there was an in-person NFT art exhibit. This event had big names involved. The hosts of the event, Malaya Ape Club (M.A.C.) used this event to announce their first NFT art exhibition featuring the big names in the NFT community as mentioned like 8sian, Bared Ape Yacht Club, and Pestle & Mortar just to name a few.
With the increase in the NFT community members, there is also an increase in people who understand the metaverse and blockchain technology. There are currently a few other Malaysians who are generating a lot of local and international buzz. The future of NFTs in Malaysia seems to be relatively bright.
The Metaverse Marvels Tarot are a set of NFTs that are based on tarot cards that are made by a team at BURO Malaysia. This work is a collaboration with the leading NFT creatives and distributors, NFKings. This set contains 11 cards all based on the Major Arcana of tarot cards. This collection will be available in a Tarot Card Reading Game which is said to be launched during the 4th quarter of 2022.
The next team is Apes R US which features their 8,444 unique polychromatic primate NFTs. These NFTs were created based on everyday traits and pop-culture. These artworks were done by Malaysia’s very own Katun.
NFTs are making huge waves throughout the world. In Malaysia, it is not just something that we can own but we also have local artists making very impressive artworks and representing our country in a very good light. Our country will have a very bright future as we slowly begin to explore this new world of NFTs.