5 things you might not know about NFTs

More than one in 30 French people have already bought NFTs, according to a recent Ifop survey for Cointribune. And among 1,824 seniors, one in two people have heard of NFTs. If these three little consonants are on everyone’s lips today, many fans and neophytes are not aware of certain bricks in the history of NFTs. Go back to five of them.

1/ It all started… with cats!

If forms of NFT started circulating… as early as 2014, it is thanks to the CryptoKitties phenomenon that Token not exchangeable (NFT) are growing massively. Launched in December 2017, this game offers collecting unique cats on the blockchain and mating them to create new kittens, then inheriting the characteristics of their parents. Any animal can be sold or traded there in exchange for Ether, the native cryptocurrency of the Ethereum blockchain.

In May 2018, one of these virtual cats was even bought at auction for $140,000 by Igor Barinov, a Russian politician.

2/ Rapper Booba was the first French artist to democratize NFTs in the music industry

In 2021, the artist Booba, very dedicated to cryptocurrency industry, has released five digital cards giving access to its latest title: “TN”. Each virtual object was issued in 5,000 copies, making a total of 25,000 NFT. Anyone who possessed at least one digital token had exclusive access, from November 8, 2021 at 6:00 p.m., to the song “TN” as well as the music video. On November 6, on his Twitter account, the French rapper announced that all 25,000 NFTs had been sold, two days before the end of the sale. Each digital card was sold at a price of 0.006 Ethers (ETH), representing a turnover of 150 ETH (€564,000 at the current price).

3/ A slice of NFT pizza sold for $8,824

Any everyday object can be dematerialized in NFT form, even a slice of pizza! In March 2021, the American fast food chain Pizza Hut decided to invest in the Rarible platform by marketing digital pizza slices with the aim of promoting four of its new pizzas. And to say the least, they sold like hotcakes! Originally sold for 0.0001 ETH, or about 18 cents, one of the shares quickly came back on the market for 5 ETH, or $8,824.07.

4/ In October 2022, Paris opened its first center dedicated to NFTs

Located right in front of the Georges Pompidou National Center of Art and Culture, in the heart of Paris, the NFT Factory covers nearly 400 m2 of the French NFT ecosystem. art Gallery, an educational workshop that allows individuals to buy NFT, a networking space for industry professionals, this site also offers events such as cryptoart roundtables, debates on regulation and entrepreneurship, and even a Crypto Comedy Club. Objective: to create emulation in this emerging market. “With global players in culture, video games and the luxury industry, France has all the tools to become a European and global NFT platform. We must accompany this movement with the support of public money, within the framework of France 2030“, explained Ministerial Delegate for Digital Transition JeanNoël Barrot during the inauguration of the NFT Factory in October 2022.

5/ The energy consumption of a single NFT would be 340 kWh, i.e. the monthly electricity consumption of a European citizen.

To understand why NFTs are polluting, we need to go back to the “chain”. When you decide to create an NFT, whether it is a text, a graphic creation or even a video, you will first use digital creation tools such as Photoshop or Illustrator for example. Once the support is created, it will need to be hosted in a decentralized and dematerialized way on the web, and finally, run a smart contract (contract that relies on Blockchain technology to make their terms and conditions of their executions harmless) in order to be able to put it on a blockchain like Ethereum or Solana.
It is through this type of platform that your NFT can then be traded through the use of cryptocurrency, a virtual currency that has a huge environmental impact. The production of a Bitcoin requires the use of very powerful and above all very energy-hungry computers. According to a study published by the University of Cambridge, the ecosystem of Bitcoin it would represent 127 TWh year-on-year, more than the consumption of Norway or Argentina.

Added to this is the NFT technology itself. Indeed, the servers used to host the works as well as the technologies needed for auctions also have a heavy impact that is still difficult to accurately assess. According to artist and engineer Memo Akten, the energy consumption of a single NFT would be 340 kWh, which is the monthly electricity consumption of a European citizen.

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