Not long ago, a Google search for “NFT” would have led you on a horticultural journey through innovative plant cultivation methods. But, today, non-fungible tokens, or NFTs as they are commonly known, are all the rage! A look at the all-time top ten most expensive NFTs sold would confirm that they are rising stars in the cryptosphere: three art NFTs by digital artist Beeple have sold for a combined value of nearly USD 82 million (including a digital collage for USD 69.3 million), and five CryptoPunks (unique collectible characters created by Larva Labs) have attracted a total of USD 37 million. What's more, NFT sales volumes racked up USD 10.7 billion in Q3 2021 alone, compared to USD 2.5 billion during the first half of the year. Besides their current use for art and collectibles, video game assets, and virtual land, the potential use cases for NFTs include (physical) real estate transactions, event and concert ticket issuance, and supply chain management.

Nevertheless, as with any asset that is prone to speculation, the cryptosphere is not without its dark side.

So, we need to ask: what are NFTs, what makes them attractive, and what’s driving their demand? What does the NFT playing field look like, and do they have a future?