The times where rare pieces of articles auctioned online have faded in history. A unique crypto world that brought an entirely new dimension to digital art has emerged.
The term NFT (Non-fungible tokens) is digitally encrypted files that can be bought and sold online. Blockchain, a digital public ledger, encrypts the NFT data about the ownership and authenticity, like an agreement, keeping the intellectual property remains tamper-proof.
NFTs are digital objects of the Ethereum blockchain that represent tokens having key information in them. Additional information is the type of art, animation, music, video, etc., in respective file formats of JPGs, GIFs, MP3s, MPEG, AVI, and more. NFTs are tradable as they hold market value in proportion to popularity and social demand.
Creator, usually, an artist is required to have some kind of ‘legal’ ownership of his work to sell the artwork. The designer, usually an artist, signs up with a marketplace with nominal membership charges. The provider renders a secure platform for members to validate their source on the blockchain (e.g. Ethereum blockchain). The members can then auction on an NFT marketplace by listing, similar to eBay.
Unlike bitcoin cryptocurrencies, which are “fungible,” having a uniform valuation, NFTs have unique valuations seasonally set by the bidders.
NFTs were introduced to solve the problem of creating scarcity for easily reproducible objects (unlike traditional painting or sculpture, duplicating digital artwork is trivially easy – it’s just a matter of downloading a copy).
NFTs are not entirely new. The first type of NFT to hit the market in 2012 was the “coloured coin”, a bitcoin token with additional functionality that allowed them to represent other assets on the blockchain.
NFTs vs Bitcoins
Unlike physical pieces of art that can be broken, lost, or destroyed, NFTs cannot be destroyed because they are recorded similar to cryptocurrency transactions on a blockchain. Here, secure transactions made between two parties are recorded permanently through blockchain.
Unlike cryptocurrencies like Bitcoin, NFTs are not fungal. While all bitcoins are the same, each NFT can represent a different underlying asset and thus different fund values.
How Do NFTs Work?
Traditional artworks like painting are just as valuable for the merits they have. Digital files, on the other hand, are easily reproducible.
With the invention of NFTs, the artworks are “tokenized” to create a digital certificate of ownership used in trading. NFTs render cryptographic tokens. Something similar to a certificate of ownership. It means, only the authorized owner owns the original image with encrypted metadata.
The cryptographic transaction process ensures the authentication of each digital file by providing the digital signature used to track NFT ownership. NFT declares you an authorized owner. When you buy metadata, it gives you bragging rights.
The use of NFT provides proof of authenticity; similarly, the blockchain prevents bitcoin from being “owned” by more than one person.
NFTs are created when a blockchain string records a cryptographic hash, a set of characters identifying a chunk of data, a chain of identifiable data blocks on a previous record.
When someone buys artefacts certified by NFT, the buyer is not buying digital assets. Instead, he is buying digitally certified notes claiming to be an owner. Anyone can download a copy of the file or link to any property with NFT tokenizing, but only the NFT owner has a contract claiming their ownership. Meaning, even though multiple digital versions of NFT Art may scatter on the marketplace, these copies of an NFT remain valid parts of the blockchain. However, having no digital information of authenticity associated with them fetch no value as that of the original.
There are several authorized brands in the NFT marketplace. They sell NFTs.
Here are some of the top names:
- NFT Show Room – Proof of Art
- Open Sea – The world’s largest NFT marketplace
- Super Rare – Deals in CryptoArt and NFTs from the world’s top artists
- The Gemini Nifty Gateway – The world-leading security technology
- Foundation – A platform that helps build techno commercial digital artworks and NFTs
- VIV3 – The Cyybercent Art gallery for NFTs
- Zora – A decentralized auction portal for NFTs
- Bakery Swap – A special marketplace made for NFTs
- Rarible – A gateway to create, sell, collect digital assets secured online
NFT Art – A Rewarding Trend
The digital world now benefits meme-makers or TikTok creators for circulating it over the internet. NFTs, on the same line, through revolutionary technology, rewards art creators. Besides fine art experts, digital artists and even visual artists look forward to NFTs.
The young generation is keen on exploring opportunities to ride on the latest technological developments. Beyond Robotics and AI platforms, kids are minting interest in NFTs, with built-up public consciousness. The renewed trend in cryptocurrencies and growing popularity in digital art have pushed NFTs into major consciousness.
NFT Art is a hot cake in a way that enables creators to monetize their digital artworks. This domain justifies designer interest in technical, creative, and commercial aspects. To teens of this generation, the NFT concept is more compelling. This is true as they have a thorough interest in technological advancements and their reach on social media. They keenly undertake internet-based challenges. In recent years NFT Art is going to be a big teen boom.
Benefits of Trading NFTs
One big selling point of NFTs is that they allow digital artists to claim ownership of their work. Earlier it was difficult for people to earn anything from digitized files of their creativity shared through the internet. The public domain allowed people free downloads, even without the permission of the originator. Limited ways to restrict it through copyright or IP channels posed impracticable problems. NFTs Art resolved the hurdles in making ways for artists to gain. In most cases, the artist retains the copyright of their work. It enables them to continue to make and sell copies.
The piece showcased online demands no redundant maintenance or overheads. Moreover, trading crypto art is safe and theft-proof. The eco-friendly transaction of this kind needs no logistics. The entire lifecycle of NFT Art consumes minimal energy, thus favouring an ecological footprint.
The NFT trading portals such as Ethereum and even Indian brand WazirX protects ownership by generating an immutable unique code. This code enables creators and buyers to verify authenticity by encrypting an unforgeable signature on the blockchain. The buyer of the NFT has a “token” that proves that he owns the “original” work.
Growing Popularity of NFTs
Theoretically, anyone can tokenize their work to sell as an NFT, but the recent multi-billion dollar sales headlines have boosted interest. For example, the animated Gif of Nyan Cat – a flying pop-tart cat made more than $500,000 (£365,000). Another name with NFTs prompts digital artist Beeple, who set a record of $69m (£50m) for his artwork auctioned at Christie’s auction house. Millions of people have visited Beeple’s digital art on the net, and the image has been copied and shared countless times. The traffic, in turn, adds value to the nominated NFT Art. Overall, the NFT market value has a three-fold increase in 2020, crossing $250 million. Interestingly, during the pandemic, NFT transactions crossed $2 billion.
NFT Art renews the definition of ‘artist’. They are named crypto-grifters. The form of NFT Art is more than an artwork. It has the potential to make art ownership more democratic and rewarding. NFTs can be looked at as smart contracts. Offer the artist, for example, the option of future sale of the token as demand grows. The crypto contract is more beneficial than any fixed digital asset, as NFTs can gain surge value. This helps artists secure a reliable source of income and social recognition.
A New Avenue for Artists
The era of Cryptocurrency first opened the opportunity to own completely digital assets. The positioning of digital artwork through NFTs brought a revolution to the Crypto platform. NFTs with added security offer creators the authority to trade the asset digitally by renting, selling, or leasing as a branding tool.
The idea of NFTs is exciting. This is a new form of online trading, and it presents us with the possibility of fractional ownership, which can bring excitement and new buyers. Traditional auction houses look forward to mint existing works through NFTs rather than simply digital art trade.
Some NFT Arts come with a royalty option to the artist. Meaning, each time the artwork is sold, the artist can receive 8-10% of all future sales. It depends on what auction portal the artist utilizes. Zora, for example, is an NFT platform with a “creative share” option, meaning users can buy and trade artwork instantly. For young students and net-savvy teens, the NFT model is the best opportunity. With NFTs, teens can drive onto a commercially sustained career path.
The unseen risk for NFTs is whether the trend sustains. NFTs may be the white-hot phenomenon of the moment, but, like any new technology, they still have some way to go before they can be widely accepted and come into the mainstream. However, given the widespread use of blockchain, it seems clear that due to the usefulness of NFTs as proprietary records in the business, they may remain here in one form or another.
NFTs in Teens Perspective
Teens of this generation may exploit the avenue of making NFTs their passion. Who knows someone’s artwork could fetch more mileage than the masterpieces of a past era, such as the Mona Lisa painting.
Nifty Next Generation featured the work of jstngraphics, a 17-year-old 3D artist and photographer from Washington State, and Solace, an 18-year-old from Soledad, Calif. Both teenagers have been making NFT Art for about a year and came to the limelight after selling their work through the online auction site SuperRare. No wonder their work bagged offers ranging from about $1,000 to $7,250 sold out.
Sounds lucrative? Why not take on the challenge!