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Tulips, stuffed animals and comic books have all seen dramatic growth and even more dramatic falls over the years. The value of collectables, of course, depends on crowd sentiment. The first NFT technically came out in 2013, but the technology has taken off in recent years: Sales for the month ending Jan. However, developers and marketplaces are exploring more sustainable alternatives.

Like all forms of blockchain, NFTs tend to use a lot of energy and raise environmental concerns. People can’t just swap one for another – they’re not like monetary currencies, but instead are digital versions of signed first-edition books or mint-condition baseball cards. “Nonfungible” means that they don’t carry the same value. Let’s start with a definition: NFTs are digital art that uses blockchain technology to guarantee the ownership and authenticity of each piece.

Now brands are beginning to explore the potential uses of NFTs, and finding benefits that go beyond auctions. However, others compare the trend to bubbles such as Beanie Babies or worry about environmental impact. Some experts sing the praises of the new form of media, which has brought in hundreds of millions of dollars at auction.

From bored apes to cartoon punks, nonfungible tokens, or NFTs, have captured the attention of digital investors and online collectors over the last few years.

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