The History of Non-Fungible Tokens (NFTs) and Twitter's Super Follow Service

The History of Non-Fungible Tokens (NFTs) and Twitter's Super Follow Service

In October 2017, a Vancouver-based company called Axiom Zen launched a game called CryptoKitties, which marked the beginning of the history of Non-Fungible Tokens (NFTs). While ERC20 tokens were commonly used on the Ethereum blockchain, they were not suitable for creating unique tokens. To address this, the ERC721 standard was invented.

Interestingly, the concept of NFTs can be traced back even further. The Rare Pepe Meme Directory, for instance, certifies the rareness of pepe memes, highlighting the demand for unique digital items. Colored Coins, which are bitcoins that were part of the "Genesis transaction," can also be considered as the earliest form of NFTs as they are unique and identifiable from regular bitcoin transactions.

As the popularity of trading rare pepes on Ethereum grew, two creative technologists, John Watkinson and Matt Hall, created their own NFT project called Cryptopunks. Cryptopunks, although not following the ERC721 standard, can be described as an ERC721 and ERC20 hybrid. This hybrid nature allowed them to have unique characters generated on the Ethereum blockchain.

The ERC721 standard, which stands for "Ethereum Request for Comment," was purpose-built to be the technical standard for non-fungible tokens on the Ethereum blockchain. Unlike ERC20 tokens, ERC721 tracks ownership and movements of individual tokens, enabling the chain to recognize non-fungible tokens.

The first project to utilize the ERC721 standard was CryptoKitties, which gained significant attention. This success led to the spin-off of a new company called Dapper Labs, which secured $15 million in funding from top investors, including a16z and Google Ventures. This marked a turning point where people started to realize the true power and potential of NFTs.

Meanwhile, in a different corner of the internet, Twitter was making its own moves. At the recent Analyst Day event, Twitter unveiled its plans for a paid subscription service called "Super Follow." This service allows users to access exclusive content, deals, and community access to creators for a monthly fee of $4.99.

Twitter's move into the world of paid subscriptions is part of its broader goal to increase revenue. By 2023, Twitter aims to at least double its total annual revenue from $3.7 billion in 2020 to $7.5 billion or more. Additionally, they aim to reach 315 million or more mDAU (monetizable daily active users) in Q4 2023.

The emergence of Twitter's Super Follow service and the growth of NFTs highlight the increasing demand for unique and exclusive digital content. Both developments show that people are willing to pay for access to creators and digital items that hold value to them.

As the NFT space continues to evolve, it is crucial for creators and platforms to collaborate and make items interoperable. This collaboration can lead to exciting developments within the NFT gaming and project ecosystem, providing users with new and immersive experiences.

In conclusion, the history of NFTs has come a long way since the launch of CryptoKitties in 2017. The introduction of the ERC721 standard and the subsequent success of projects like Cryptopunks and CryptoKitties have proven the value and potential of NFTs. Simultaneously, Twitter's Super Follow service reflects the growing trend of paid subscriptions for exclusive digital content. To succeed in this evolving landscape, it is important to embrace collaboration and interoperability.

Actionable Advice:

1. For creators: Consider exploring the world of NFTs to monetize your digital content and engage with your audience on a deeper level.
2. For platforms: Invest in developing NFT infrastructure and interoperability solutions to enable seamless experiences for users across different projects and games.
3. For users: Research and understand the value proposition of NFTs before investing, and explore platforms that offer unique and exciting digital content.

The future of NFTs and paid subscriptions is promising, and by embracing these trends, creators, platforms, and users can unlock new opportunities in the digital space.