1.2 Development of the NFT market

NFT first appeared in the public eye a few years ago (Crypto-Kitties). The game is very simple: the game developer has deployed a "cloud cat" game on Ethereum (ETH), where players can pay for ETH and buy all kinds of cats in the game. So how do you prove that you own a cat, not someone else? Yes, after paying for the ETH purchase, your account will receive the NFT of the cat, which is the certificate of owning the cat. If someone buys another cat, they will have another cat's NFT, which is the certificate of another cat. And between these vouchers, nature is different. Of course, because the data on the blockchain is imtamable and open, your ownership of the cat is recognized and protected by the entire blockchain system.

Unlike traditional virtual pets, previous virtual pets were kept on the company's service servers, and once the company shut down, they disappear. Crypto cats cannot copy, tamper with and destroy them on the entire Internet, which means that you can permanently own the virtual pet and can save, circulate and trade in any Ethereum blockchain system.

The app sold millions of dollars a day, the most expensive being a crypto cat called Dragon, which sold at 600 ETH, $270,000 a month ($1.68 million for now Ethereum).

However, under the combined influence of a lot of similar games, including the decrease of the currency price, the decreased attention of the coin circle, and the low transaction speed of Ethereum.

Now, NFT is booming in the art market. In fact, the art NFT is similar to the game NFT: for example, the artist can pay ETH, send the information of his work to the ETH network, and obtain the NFT containing the information related to the art, that is, the certificate of the painting. After the buyer bids and pays ETH, the NFT of the work is sent from the artist to the buyer, and the buyer now gets the NFT of the work, that is, the certificate of the painting.

NFT has a much longer history than most people think. The first attempt of NFT was in the ColoredCoin era of 2012-2013, in 2018 and 2019, NFT ecology achieved massive growth, at this time there were more than 100 projects in this space, and more projects continued to join. In 2020, with the popularity of the DeFi concept, NFT once welcomed a new life, which laid the foundation for the explosion in 2021. We believe that while it is 2021, the NFT industry is still in its very early days. Despite the tremendous growth in NFT over the past year, the NFT ecology remains very young and, therefore, the growth will onlycontinue.

Indeed, we believe that the growth of the NFT ecosystem will accelerate as more people and companies realize the impact that NFT can have and further implement them. Developers will continue to create innovative uses for NFT, and interoperability projects will completely change the game. We predict that in five years, NFT will change the industry dramatically!