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Everything You Need to Know About NFT Art

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Overview

Compared to the previous year when barely anyone had heard about it, the year 2021 saw a massive boom in the adoption of NFTs or non-fungible tokens. 

In essence, non-fungible tokens are blockchain-based proofs of ownership over basically any assets that can range from arts, in-game assets, videos, collectables, virtual real estate, or even actual real estate and real-world items like designer shoes.

The concept of “fungibility” refers to the interchangeability of an asset, and this is best exemplified by the money that we use. For example, a $100 bill can be exchanged for five $20 bills and their value would still be the same, which makes them fungible.

On the other hand, non-fungible assets are unique or one-of-a-kind assets, such as the Mona Lisa painting or even the $100 bill if it was signed by a famous artist like Banksy. They are not interchangeable, and their value can increase or decrease based on demand.

While NFTs can represent ownership in almost anything, NFT arts in the form of paintings, GIFs, memes, and avatars are no doubt some of the most notable types of NFTs today and for good reasons.

How NFT Art Works

Some would argue against the value of NFT arts based on the idea that anyone could simply copy and share digital arts endlessly. After all, they are online, can be viewed by anyone, and can even be copy-pasted, so what’s the point of paying an outrageous amount for it?

While it is true that anyone can copy and share an NFT art countless times, it all boils down to one word – ownership. 

Let’s take the Mona Lisa painting again as an example. The original painting is currently displayed at the Louvre Museum in Paris and is believed to be worth an eye-watering $850 million. 

As a tourist, you probably can buy a picture of it as a souvenir that you can take home, which is akin to saving a digital image on your computer. While you may now have a copy of the Mona Lisa, that doesn’t mean you own the original painting.

The concept of NFT arts work the same – while you can view the NFT art masterpiece online, ownership is reserved to the one who owns the NFT itself, which comes with its own set of perks like copyright and royalties.

How NFTs Are Helping Artists and Creators

True Ownership

Every data that is on the blockchain is transparent and cannot be modified once recorded, and the same goes for NFTs that exist because of blockchain. Before NFTs, no one got to completely own digital art in all sense of the word because it can easily be copied and shared online.

When NFTs came into the picture, creators and artists were now presented with an opportunity to have all the details of their digital art recorded in a virtually hack-proof ledger called blockchain and things like ownership became unquestionable. 

As a result, artists and content creators can now exercise their rights as owners over digital arts, including the legal advantages that come with it, such as having the authority to rent them out, sell them, or display them how they want to.

New Ways to Monetize

The aspect of ownership over something that exists completely online has never been given much consideration in the past. Today, we are experiencing a paradigm shift as true ownership over digital assets becomes possible and legitimate owners can now be determined without question. 

With this, new ways to monetize what one has created has also become possible, including the ability to earn royalties on every succeeding sale, provide licenses for limited use, or sell the NFT art in secondary markets like OpenSea.

Notable NFT Arts

Earlier this year, digital artist Mike Winkelmann, also known as Beeple, made history as he sold one of the most expensive NFTs to date – a collage called Everydays: The First 5000 Days, which went under the hammer at Christie’s and sold for a staggering $69.3 million.

Another interesting aspect of NFT art is that while they may look similar on the outside, they can still be one-of-a-kind and be distinguishable from each other based on their details stored on the blockchain. 

For example, a digital artist who goes by the name of Josie created a crypto art called “Choose #4” and another called “Choose #5”. While they look the same on the outside, the limited edition artworks are completely unique masterpieces with separate and different metadata on the blockchain.

If you’re familiar with most of the viral memes or GIFs that circulate online, chances are, you’ve probably run into Nyan Cat, an animated flying cat with a pop-tart body that originated as a video. This was minted into another notable NFT this year that sold for an outstanding $590k. 

Key Takeaway

In Cointelegraph’s Nonfungible Tokens: A New Frontier, 2021, their research paper released earlier this month, they provided a conservative estimate for total NFT sales volume this year at $17.7 billion and an optimistic forecast at $67 billion. 

This speaks volumes on the potential of NFTs, especially in the field of arts, in breaking through the traditional model of owning and earning from works created by artists and creators. The NFT space is definitely an exciting space to be part of and just like how cryptocurrencies have changed the way we view money, NFTs are also on a trajectory of challenging the usual way we look at things and opening new opportunities in the process.

At present, most NFTs can be purchased using cryptocurrencies like ETH. Should you wish to explore cryptocurrencies like ETH as you work on your way to buying NFTs, sign up now for a trading account at 1Market.

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