Cryptocurrency is taking the world by storm. Every industry is experiencing its influence, and the art world is no different. NFTs or Non-Fungible tokens are redefining the way art is purchased and sold. It is creating new possibilities for both budding and already established artists.
Art and NFTs are a flourishing combo and are making headlines together. Some artists are utilizing the potential of NFTs and selling their unique works for millions of dollars. For instance, well-known artist Mike Winkelmann’s digital JPG file – ‘Winkelmann’s Everydays: The First 5000 Days’– was sold by Christie’s at an unbelievable value of US $69.3 million as an NFT. The art was initially valued at US $100 at Christie’s standalone online auction.
It is the first time Christie’s has accepted payment in cryptocurrency. NFTs are an entirely new domain for the auction house, but they have changed the perspective of the art industry and emphasized the growing potential of art getting mainstream acceptance.
Zoe Roth, famously known through the meme ‘Disaster Girl,’ was photographed in front of a burning building at the age of four. Her photograph went viral all around the internet, and she recently sold the original meme image for a staggering sum of US $500,000 via NFTs.
Although some people have doubts about NFTs and their future, market experts have a positive outlook towards the entrance of crypto in the business, entertainment, and art sectors.
If you have just started exploring NFTs and are still confused about what they are and how they work for art and artists, we are here to help you out.
What is an NFT?
An NFT or a Non-Fungible Token is a digital asset that holds its value in the form of crypto. These tokens can be commercialized, i.e., one can buy or sell them through relevant platforms.
NFTs are called non-fungible because they are unique in value. This is because the value of every Bitcoin remains equal, Crypto Dispensers explained. For instance, the exchange will be equal if you exchange one Bitcoin with someone using trading platforms like Coinbase or other Coinbase alternatives. Bitcoins are functionally identical to each other, unlike NFTs, which have a unique value.
You cannot exchange a Macbook for a set of AirPods because they have unique characteristics and distinct values. Similarly, you cannot exchange two NFTs as each of them have specific values, and every token comes with a unique signature.
How do NFTs use Cryptocurrency for Art?
NFTs utilize blockchain technology. They mostly use Ethereum and are minted from digital objects. These digital objects create NFTs in such a way that they represent tangible or intangible assets like videos, sports highlights, memes, photographs, collectibles, paintings, art or music.
When individuals purchase an NFT, they may get a digitally signed piece by the authorized owner or the artist. The sale of every NFT is tracked on the blockchain. This tracking prevents fraud and false ownership claims.
The metadata and unique ID of each NFT are used to manage the ownership. Every minted token has unique identification linked to an address. This address is hosted on a blockchain like Ethereum.
NFTs can be excellent investment options. Just like any other product, one can either cherish their NFT art forever or resell it to other interested buyers. There are many cases where the original creator of the NFT gets royalties if the NFT is resold.
Crypto, NFTs, and Artists
Making money out of digital art was not a prominent option for artists before NFTs got the spotlight. Earning millions for the artwork was a daydream for many creators. But as the NFTs become more mainstream, artists and art houses are realizing the untapped potential of the digital art industry.
Numerous art houses and auction galleries are opening up their doors for crypto and organizing NFT auctions. Art connoisseurs are also enjoying the upgraded form of acquiring art with NFTs.
Artists can now expand their income source by tokenizing their work. They now have the option to leverage smart contracts for ensuring a consistent income. These smart contracts are digital contracts that are set in code. This code can be programmed to execute when the prerequisites of the contract are met.
How is crypto art minted?
Crypto art is minted through smart contracts that assign ownership to the creator of a particular art piece. This authorizes creators or sellers to manage the transferability of the art for collectors and buyers. Smart contracts need to comply with specific standards like ERC-721. When an individual mints an NFT, they execute a unique code in that particular smart contract.
When the code is assigned to a smart contract, the information is added to the NFT managing blockchain. The creator’s public key becomes a permanent part of the token’s history, which allows them to receive royalties on every sale.
Where can one buy NFT art?
There are numerous platforms that are serving as marketplaces for NFT art. These platforms accept cryptocurrency for buying different artistic creations. Nifty Gateway, Asynch Art, KnownOrigin, Foundation, OpenSea, and Zora are some of the prominent names in the industry.
Each platform deals with different art pieces like digital paintings, PDFs, music or even tweets and memes. Renowned art houses like Christie’s and Sotheby’s have also started auctioning NFT art that one can obtain through cryptocurrencies.
Where can one sell NFT art?
Now that the artists are becoming aware of the booming NFT art market, many platforms allow them to list their work for sale. SuperRare, AtomicMarket, Myth Market, Portion, Enjin Marketplace, and Foundation are some platforms that artists can explore for selling their NFT art.
Artists can also sell their NFT art through art house auctions. Many art houses are recognizing budding talent and young artists. Christie’s featured the eighteen-year-old FEWOCiOUS as their youngest artist and auctioned his piece for US $2.1 million.
Recently billionaire Mark Cuban backed Mintable, an NFT marketplace. The initiative raised a striking US $13 million in its series A round. Many renowned investors like the 640 Oxford ventures, Expedia Group, and Spark Digital Capital participated in the event.
Keeping its growing popularity and digital relevance in perspective, the upcoming future for NFT art seems bright. NFTs are empowering artists to prevent exploitation and make a name in the market. Even though it is not easy for every artist to become a millionaire through NFTs, these tokens have done their part in revealing the profit potentials of digital art.