NFT, or non-fungible token, was named Word of the Year by the dictionary editor Collins, who say the use of the abbreviation increased by more than 11,000% in 2021.
NFT is one of three technology-based words to top Collins’ list, narrowly beating “crypto” for the top spot and joining “metaverse.”
NFTs have become a popular form of digital token for their ability to transmit information in an exclusive manner while simultaneously protecting the ownership of the information itself, becoming an increasingly collectable item.
Over the past year, the industry has exploded, with NFTs becoming the latest fad, with big brands creating and selling NFTs, from Banksy’s artwork to farts.
Adam morris, NFT expert at the community platform TVN Club, explains why they experienced such a boom:
“Despite what some people may think, most NFTs have been a natural progression. They were present in the hype of 2017, but people were just starting to understand cryptocurrency, so NFTs were too advanced for that time. Within this recent crypto rally, there are more experienced people in the industry during the 2017 cycle, so as a result, a lot of people who understood the ins and outs of crypto were looking for the next ” thing “.
“Currently, the high end of the NFT market is mostly made up of successful businessmen and people who have done very well in cryptocurrency. This is why the price tags on some NFTs are so high, simply because these people have the money to spend.
“But, as with any market, there will be a correction and because NFTs are new, it is more likely to be a very big correction. Similar to how the crypto market was in 2017 people are just new to NFTs and there is a lot of excitement. At some point it will reach a tipping point and the value of most NFTs will drop dramatically. However, NFTs and the technology behind them. -tend are definitely here to stay. With the announcement of the rebranding from Facebook to Meta and their efforts to create the Metaverse, NFTs have a big role to play in this futuristic setting.
The news has generated a lot of excitement in the industry, with the move highlighting the breadth of reach of the crypto community.
Barron Solomon, CEO and co-founder of Solo music said, “Collins Dictionary chose NFT as the word of the year is a strong testament to the power of the crypto community and blockchain technology. NFT technology was not known to many people, let alone understood, only a few years ago. The community continues to innovate, using blockchain technology to redefine ownership and empower artists, and the world is taking note. Mainstream adoption is growing rapidly and we are excited to see how this trend continues in 2022. ”
Amélie Arras, Marketing director, Zumo Continues these thoughts by saying, “It’s great news that NFT, or non-fungible token, has been named ‘Word of the Year’ – but it’s not surprising. The decision recognizes the enormous impact of NFTs and the opportunities they unlock. NFTs take crypto and the emerging decentralized world to a whole new level; they have proven to be a useful and tangible application of blockchain in several industries, such as art, music, and real estate. This will only fuel further adoption of crypto across the globe. “
A “digital representation of reality”
Uldis Tēraudkalns the CEO of Nexpay, agree with Arras that the news was not at all a surprise.
“We have seen a sudden and massive explosion in the digital representation of reality in 2021,” he said. “Last year, no one knew the word ‘metaverse’ and only a few people knew about NFT. Then all of a sudden that’s what most of the big brands in the world jump on and Facebook even renamed to meet this exciting new world. It is therefore not a surprise. I guess metaverse would be the word of the month or the last two … “
With a focus on the digital world, Dr Hirbod Assa, Senior Lecturer in Finance and Fintech, University of Kent said, “NFT or Non-Fungible Token is the Collins Dictionary Word of the Year. Why? The world is increasingly digital. This can include any collector’s item, so there must be some way to define ownership of digital collections. The main characteristic of any true collector’s item is that they are non-fungible merchandise. NFT is a computer algorithm that commodifies a digital coin that is also non-fungible. But NFT went further and introduced new types of collections, digital collections, which are primarily business objects. Can they be maintained? Nobody knows; it’s a new world to explore.
“Since the explosion of TVNs during this year, especially after Beeple ‘s gigantic sale, it has enabled digital artists around the world to perceive DTV as a viable source of revenue. NFT being the Word of the Year also emphasizes mass as a concept which isn’t scary, but it’s something they could support. Kalamin Since its launch (March 23, 2021), we have over 150,000 users from 192 countries (with many artists from economically weaker countries who see NFTs as their main source of income). Legitizing it on a global scale will only encourage many more artists to dive into the NFT world and experience it firsthand, ”said Pradeep Atmaram, Marketing Director, Kalamint.
They continued, “The term NFT being in the constant news cycle and also the ‘word of the year’ establishes that NFTs are more than just a fad and are here to play the long game. this will attract more attention and encouragement to the artists who are here as early adopters to push him further into the mass adoption phase.
Finally, pending the future of the NFT market, Viktor Prokopenya, Fintech investor and entrepreneur said, “NFTs as elite art forms are definitely here to stay: it’s the start of a huge new trend.
“NFTs are creating scarcity online; quality only possible offline before. All kinds of line art could easily be replicated before NFTs – for example, you could download a file with music without losing quality. NFTs are basically digital collectibles, they do something unique and therefore very popular. Scarcity creates opportunities for the existence of new digital art forms and can create a whole new market for artists.
“The previous cryptocurrency boom was centered in the financial world – the NFT boom seems to bring innovation to art and creativity, which can only benefit the world.
“Humans have collected art for many centuries, from great Renaissance works to impressionist paintings by Monet or Renoir. It is the next incarnation of this fundamental desire to collect creativity and be inspired. “