NFT art fetches record $69 million at Christie’s online auction, all you need to know

Non-Fungible Tokens or NFTs are computer files combined with proof of ownership, and authenticity, like a deed.

The digital world is booming at a rate faster than many of us can comprehend and while we are still trying to grasp the workings of cryptocurrency, Non-Fungible Tokens (NFTs) have taken over the internet already, and it is only time before it makes most things we known as intangible. With Twitter founder Jack Dorsey's first ever tweet being sold for just over $2.9 million, the buzz doesn't seem to die down any time soon, so we help you understand the basics.

What are NFTs?
While it is only restricted to digital art, memes and GIFs as of now, that in itself is making huge waves in the digital world. With so many terms being thrown around, it is only important to start by understanding the basics. According to a report in time.com, Non-Fungible Tokens or NFTs are computer files combined with proof of ownership, and authenticity, like a deed. The digital tokens exist on a blockchain, which is a tamper-resistant digital ledger.

Not too long ago, many people were saying that Bitcoin is probably the answer to digital currency but with NFT's becoming the other form of digital ownership, it is being considered as the answer to collectibles, according to a BBC report.

Why is it suddenly a rage?
While NFTs have been existent for a while, the recent sale of many different kinds of digital art in 2021 has piqued interest among people. On February 19, a 2011 meme of an animated GIF of Nyan cat caught the eye of many people because the meme of a flying pop-tart cat sold for $500,000. In no time, the Canadian musician Grimes sold her digital art for $6 million.

However, it was digital artist Mark Winkelmann, popularly known as Beeple, who turned heads after he sold a piece for $69 million, at Christie's at a standalone online auction, which took place from February 25 to March 11. He set a new record for digital art. The artwork is titled ‘Everydays: The First 5000 Days.' It is a collage of digital images which Beeple took every day since 2007, for a total of 5,000 days straight.

In the latest big development, Dorsey sold his first ever tweet, "just setting up my twttr" which was posted on March 21, 2006, as an NFT for just over $2.9 million dollars on Monday, March 22.

Who are the buyers?
The bid for Dorsey's tweet has reportedly been won by Sina Estavi, CEO of tech company Bridge Oracle. On the other hand, Beeple's art buyer has an India connection. Indian-born blockchain entrepreneur Vignesh Sundaresan, who is based in Singapore, revealed himself to be the mystery buyer, as reported by AFP and published on Yahoo! News. In a blog post titled 'NFTs: The First 5000 Beeples How two immigrants from Tamil Nadu bought a piece of digital art for $69M. And what we're funding next', he mentioned, "The point was to show Indians and people of color that they too could be patrons, that crypto was an equalizing power between the West and the Rest, and that the global south was rising." He is a Y-Combinator alumnus and is currently the CEO of software technology provider Portkey Technologies.

Around 22 million viewers had tuned in to Christies.com on March 11 to witness the bidding process that saw Sundaresan -- under the pseudonym Metakovan -- win the rights to Beeple's art.