NFT timeline: A Brief History of NFTs and Where we are now

[TL; DR]

The earliest versions of NFTs were developed during the period 2012 to 2016.

Colored coins, Quantum and tokenized memes were the first versions of NFTs.

The mass adoption of NFTs occurred in 2021 following the sale of Beeple’s First 5000 Days NFT for $69, 3 million.

Decentraland and Axie Infinity are the two play-to-earn games that influenced the adoption of NFTs.

Introduction

There is no question that non-fungible tokens (NFTs) have become an integral part of the culture of many netizens and national economies. They are trending in the gaming sector and on social media platforms. Based on the current trend, it is clear that NFTs are here to stay and their use will increase with time. Today, we cover the history of NFTs and how they have already impacted the lives of many people.

What are non-fungible tokens (NFTs)?

Non-fungible tokens are one-of-a-kind digital assets that represent real world things as well as digital assets. The main role of NFTs is to prove ownership of the things that they represent such as pieces of art.

Some NFTs are in-game assets like digital characters and weapons which are part of modern video games. Basically, NFTs represent diverse virtual assets which include playing cards, music, virtual real estate, collectible trading cards and videos.

History of NFTs and the Timeline of important events

NFTs emerged a few years after the establishment of the Bitcoin blockchain and the other earliest cryptocurrencies like ETH and Litecoin. The history of NFTs can be categorized into periods, marked by certain events.

The first notable period stretched from 2012 to 2016 with key events that include the introduction of coloured coins, memes and McCoy’s Quantum.

The second remarkable period extended from 2017 to 2020 and included key events such as the launch of cryptopunks, cryptokitties and Enjin. The other key events are the development of standard smart contracts for NFTs, launch of NFTs on the Ethereum blockchain as well as the establishment of early metaverse platforms like Axie Infinity.

Axie Infinity - Whalejournal

2021 was a watershed year which marked the greater adoption of NFTs than ever before. It was the first year when an NFT, Beeple’s First 5000 Days, was sold for a record price of $69,3 million. That resulted in a rise in the demand for NFTs which attracted other blockchains like Cardano, Solana, Tezos and Flow, to adopt NFT technologies. During the same year Facebook rebranded to Meta as it aimed to introduce its own metaverse.

Early history of NFTs, 2012 to 2016

As mentioned, there were different developments in the NFT sector between the period 2012 and 2016. Let’s briefly discuss the key events of that period which include the launch of the coloured coins and McCoy’s “Quantum.”

Coloured Coins: The Coloured coins, developed on the Bitcoin blockchain, were portions of Bitcoin that represented real world assets. The motive behind these was to use the blockchain to store representations of different assets such as collectibles, property coupons, precious metals and bonds. These formed a strong foundation for the future launch of the different NFTs.

Colored Coins- Bueno

Spells of Genesis: This was one of the earliest remarkable developments involving the NFT technology. In fact, Spells of Genesis was among the first smartphone based games to exist on the blockchain. It enabled gamers to turn playing cards into tradable digital assets using the Counterparty protocol. Also, it was one of the first blockchain technologies that allowed users to create, own and monetize digital assets.

Kevin McCoy’s Quantum: McCoy minted the first NFT called Quantum on the Namecoin blockchain on 3 May 2014. That pixelated digital image, which was reminiscent of an octopus with fluctuating colours, was sold for $1.4 million at a Sotheby auction. Interestingly, this NFT is still on sale on various NFT secondary markets.

Counterparty: The Counterparty, an open-source internet protocol, was a peer-to-peer digital platform created on the Bitcoin blockchain where people could develop different types of digital assets. Several digital assets that include early memes like Rape pepe were launched on the Counterparty, a protocol developed by Robert Dermody, Adam Krellenstein, and Evan Wagner and launched in 2014.

Rare pepes: As pointed above, the Rare Pepes were among the first memes that were turned into NFT and were launched in 2016. As a fact, the Rare pepes which are images of popular frogs were a darling of many social platform users and meme lovers. Additionally, the Rare Pepe wallet enabled artists to mint their own digital artwork and monetize it.

NFTs go mainstream - 2017 to 2020

The other significant period in the development and adoption of NFTs stretched from 2017 to 2018 when Cryptopunks, Cryptokitties and Decentraland were developed and launched.

Cryptopunks: Two software developers John Watkinson and Matt Hall were inspired by the success of Rare Pepes to develop and launch a generative series of NFTs called cryptopunks on the Ethereum blockchain.

Each punk, designed and developed by studio Larva Labs, is unique as it has its own traits and characteristics. These punks, numbering only 10,000, are pixelated profile pictures which are in high demand. In general, the rarest cryptopunks cost millions of dollars.

Cryptokitties: Cryptokitties is another popular game existing on the Ethereum blockchain. Developed and launched by the Canadian studio Dapper Labs in 2017, Cryptokitties comprises digitized and tokenized images of adorable cats (the kitties) which the players can breed, keep and trade.

Decentraland: Developed by two Argentinians Ari Meilich and Esteban Ordano, Decentraland is another well-loved game on the blockchain. The gamers participate in various activities which include collecting items, creating digital assets and playing the game, among others. Everything that a player collects, creates and owns is stored on the blockchain and is tradeable.

Axie Infinity: Next on the list of popular blockchain based gaming platforms is Axie Infinity which exists on the Ethereum blockchain, with its highly demanded tokens called AXS and SLP. Created by Vietnamese studio Sky Mavis and launched in 2018, Axie Infinity has collectible digital characters called Axies which players can breed and use during battles. Axie Infinity is very popular due to its play-to-earn feature.

Enjin: It is a blockchain protocol that enables developers to create, manage and trade digital assets which include NFTs. Powered by its native token, Enjin, the platform has many tools that make it very easy for individuals and blockchain projects to manage their gaming economies and communities.

Introduction of token standards: It was during the period between 2017 and 2018 that some blockchains such as Ethereum introduced token standards such as ERC721 and ERC 1155, used for creating NFTs and other digital assets.

The year of NFTs- 2021

2021 was dubbed the year of NFTs because many NFT initiatives and developments were introduced or unveiled during it. For example, it was the year when Beeple’s NFT, called the First 5000 Days, was sold for $69,3 million at Christie’s Auction.

Beeple’s First 5000 Days - Cryptotimes

Following the introduction of token standards, other blockchains adopted the blockchain technology and started producing NFTs. Cardano, Tezos, Flow and Solano are examples of top blockchains that started to produce their versions of NFTs.

This involvement by many blockchains and the popularity of NFTs such as Beeple’s First 5000 Days resulted in greater adoption of non-fungible tokens than ever before. The emergence of the metaverse was a key factor that increased the demand for NFTs. During the same year, Facebook rebranded to Meta as it geared to develop its own metaverse.

NFT marketplaces

Having discussed NFTs, it is important to find out marketplaces where you can purchase and trade them. Gate.io is one of the most user-friendly NFT marketplaces where people can mint, buy and sell NFTs.

Gate.io’s NFT marketplace, called the Magic Box, is both convenient and cost effective to create, buy and sell NFTs. For example, you can mint your NFTs for free, store and sell them on the platform. Also, there is a wide collection of NFTs you can trade using the auction .

What is the future of NFTs?

Considering how popular NFTs are and their wide adoption, it is clear that they are here to stay. They will remain an essential component of the digital art sector as well as the metaverse. The NFTs have also found a special place in brand awareness and the sporting arena. Currently, we are moving from the experimental to the mainstream era where we will discover more use cases of NFTs.

Conclusion

The history of non-fungible tokens started in the early days of cryptocurrencies with the introduction of first NFT versions which include colored coins, Quantum and tokenized memes. After the successes of the early NFTs a few blockchain projects that specialized in NFTs emerged such as Counterparty, the Canadian studio Dapper Labs and Vietnamese studio Sky Mavis. In 2021 there was massive adoption of NFTs.

FAQs about history of NFTs

When did NFT start becoming popular?

NFTs started becoming popular in 2021 following the record sale of Beeple’s First 5000 Days NFT for $69, 3 million. During the same year other blockchains such Cardano, Tezos, Flow and Solano started to produce their versions of NFTs.

What was the first NFT in 2017?

Curio cards were the first NFT to be launched on 9 May 2017 and were followed by Cryptopunks which were introduced on June 23. MoonCats, Digital Zones and CryptoKitties were the other NFTs that came on the market in 2017.

How did NFTs come into existence?

The NFTs were created to overcome the limitations of some tokens like Coloured coins which were developed on the Bitcoin blockchain. Kevin McCoy created the first NFTcalled Quantum which was launched in 2014.