Throughout history, many have collected art as a hobby. The thrill of finding something unique and then taking it home has compelled many to spend hundreds, thousands, and sometimes even millions of dollars on pieces from artists worldwide.
In the digital age, the rise of digital art, including through NFTs and the blockchain, has reshaped how people collect artwork–not just from everyday traditional artists but also from those who create digital art, music, and animations. The growing accessibility of NFTs and blockchain platforms has introduced a new dimension to the art world. Artists and collectors now engage in a decentralized marketplace that removes many barriers traditionally associated with selling and acquiring art. This shift has democratized access to art ownership and created new revenue streams for artists.
When factoring in cryptocurrency, digital art creation can be accessed by anyone, anywhere, especially those who utilize the Ethereum market. While the value of the Ethereum price USD may fluctuate over time, its role in creating secure, transparent transactions has been game-changing for digital artists and the people who collect these NFTs.
What is an NFT?
An NFT, also known as a Non-Fungible Token, is a digital asset representing ownership or proof of authenticity of a unique item, such as a piece of art, music, video, or other digital content.
Unlike cryptocurrencies, which are fungible (the same as each other), NFTs are non-fungible. This means that each has a unique or distinct value and cannot be exchanged for something of equal value.
What Makes an NFT Unique?
Several aspects of NFTs make them unique.
The first is their use of blockchain technology. When built on platforms such as Ethereum, blockchain ensures that the ownership, transfer, and origin of the NFT are verifiable and secure. This technology records the NFT’s transaction history, making it transparent and resistant to tampering.
The second is that each NFT has a unique identifier and accompanying metadata, distinguishing it from others. While cryptocurrencies are divisible in that you can send a fraction of one, NFTs cannot be broken down into smaller parts.
Finally, when you purchase an NFT, you buy ownership rights to that piece of content or item. Through blockchain verification, you can resell or transfer it as you wish. However, this does not mean that you own the intellectual property of the item but the token that represents it.
Who is Creating NFTs?
NFTs became more prominent in 2017 when they were launched on the Ethereum blockchain. Before 2017, trading and transferring ownership of NFTs was challenging. However, their use continued to rise steadily, and they are now a popular commodity in the digital space.
As a result of this popularity, you may have heard of, or even seen, an NFT in the wild. Musicians have used NFTs in conjunction with music releases, and digital artists are also known for using them.
NFTs have also entered the collectible markets, such as those involving trading cards, virtual pets, and gaming. Some games utilize NFTs to create virtual items, characters, or skins that change the appearance of certain aspects of the game. There are even virtual real estate platforms where people buy and sell virtual land.
Why Create an NFT? Or Even Buy One?
Creators have many reasons to create an NFT, especially when they are looking to tap into the digital economy on the blockchain.
These reasons could include:
- Ownership and control of one’s work. By creating an NFT, creators have direct control of their work due to the blockchain, which provides proof of ownership and authenticity. Individual creators can also decide where and how the NFTs they create are sold, allowing them to set specific terms for ownership, transfer, and resale.
- Untapped revenue streams. Through the monetization of digital assets, creators can sell digital art, music, videos, 3D models, and other types of digital content as unique digital items. NFT platforms also allow creators to program royalties into their smart contract, which means that a creator will receive a percentage of the sale each time the NFT is resold.
- Access to a global audience. NFTs have opened up opportunities for artists to sell at rates they set themselves and at reselling price points they also agree to. This removes the need for local marketplaces or intermediaries. It can also attract collectors and fans of NFTs, who are often passionate about the blockchain art market.
- Finding and Creating Communities. Those who create NFTs often feel a sense of community with a base of like-minded people. Artists can gain closer relationships with those who purchase their works and collaborate with other artists, musicians, and creators.
- Easy to Create. NFTs are quickly becoming more user-friendly, which means that content creators can easily tokenize their digital work without needing the technical knowledge that was previously necessary. An added incentive is a lack of physical production, which means creators never have to worry about packaging and shipping their items, or relying on third-party sellers and platforms to do this for them.
Managing the Digital Rights of NFTs
Due to blockchain technology, NFTs allow artists to manage their intellectual property on their own terms. By offering transparent and automated ways to track usage and royalties, certain industries–such as the music world, the video game sphere, and publishing–can capitalize on these experiences to create even more unique products for their customers.
NFTs also operate beyond mere artwork. Certain events have now become NFT experiences, and they can include event tickets, virtual real estate, and even memberships to certain clubs or organizations. This allows people to feel like they’ve taken part in something long after the fact and create an experience that will go down in record “blockchain” history.
By creating an NFT, an artist effectively utilizes technology in previously thought-impossible ways. This game-changing technology can provide digital creators, artists, and businesses with even more fantastic ways to monetize their content while further building their community in the process.
