The Development History and Future Prospects of NFTs

NFT has evolved from a niche area in the crypto market to an important sector that cannot be ignored. In 2021, NFT sales reached more than 300 times the total for the whole of 2020. The development of NFTs can be divided into seven stages:

1. Star Card/Digital Art
2. Avatar OG
3. Generative Art
4. GameFi
5. PFP Avatar Party
6. Decentralized NFT
7. Meta Game

By summarizing, we can conclude the characteristics and trends of NFT development:

• Given more functionality
• Pursuing originality and scarcity
• Gradually moving towards mainstream
• Bottom-up, community-driven
• The social attributes are becoming stronger.
• Unfair Minting
• Tend to homogenization

Five directions worth paying attention to for future NFTs:

1. Composable NFT
2. xFi( includes SocialFi, CreateFi, LearnFi, etc. )
3. Pricing Mechanism and Liquidity Solutions
4. Decentralized Identity ( DID )
5. Other innovative forms ( such as POW NFT, interoperable NFT, growth-type NFT, etc. )

The development of NFTs is expanding from purely digital collectibles to more application scenarios. In the future, NFTs will play an important role in areas such as gaming, social interaction, creation, and learning, and will be deeply integrated with fields like DeFi and the metaverse. The pricing mechanism, liquidity, and standardization of NFTs still need further improvement. Overall, the NFT market is still in its early stages, with huge potential for future development.