If you haven’t heard about NFT art, you should check the news as soon as possible. Ever since the start of 2021, this has been a trending topic across every social platform. These digital assets are selling like hot cake, creating a 21st-century tulip fever. Millions of people talk about it every day but many still wonder what it is and what it can do for them. So, in this blog, let's walk through the most basic point of NFT art.
What is NFT art?
A Non-Fungible Token (NFT) is a unit of cryptographic data - a digital asset that represents a unique object stored on the Blockchain. It can be anything, a piece of art, a song, in-game items, or videos. In addition, NFT Art Finance is a marketplace for traders to buy and sell non-fungible tokens (NFTs). The “NFT fever” takes shape thanks to its following special features:
More or less, “Non-fungible” means that it can’t be replaced with something else and that it is unique. For example, an NFT picture and an NFT song are distinctive. If you trade them, you will have an entirely different asset. This is contrasting to bitcoin, which is fungible and can be traded multiple times without losing its distinctive value.
Another thing about NFT art is that it focuses on the growing art space worldwide, where artists can create, expose, and sell their digital art. Because the NFT represents an artist's unique work of art, it is scarce and valuable. It is becoming the new Bitcoin of the art world - a toy that can grow in value.
Unlike other electronic assets like Bitcoin or Dogecoin, NFT art is indivisible in any way. For example, you can divide 10 Bitcoin into 10 separate parts to trade, but you can’t do that for a picture or a song.
How does NFT art work?
Unlike traditional art, artist can configure NFT art to sell them in the secondary market. It exists on a Blockchain, so like other tokens, NFT can be presented and sold on this public ledger. With Blockchain technology, NFT ensures exclusive ownership, security, and ease of transfer. That's why millions of people are willing to spend money to own a work of art that cannot be stolen. Thus, this creates the “NFT fever”.
When you buy an NFT art, you buy the certificate of ownership of that NFT. However, the artwork might not be authentic. Take, for example, someone minted an NFT of the famous painting Mona Lisa and you purchase this NFT. In this case, can you say that you own the Mona Lisa? No, the real painting would still be hanging in the Louvre. What you own is that NFT itself.
Plus, some NFT may include the copyright which will be transferred to the buyer. That means you won’t be able to reproduce or sell what is contained within the NFT. You can only sell the NFT alone.
As mentioned before, NFT art can be anything, even a Tweet. Earlier this year, famous billionaire Elon Musk also joined the “NFT fever” by auctioning one of his tweets on the Valuables. Nevertheless, NFT art does not exist under physical form. It is only digital. Thus, instead of hanging a real painting on the wall, you will get a digital file that you can display on a screen.
Who uses NFT art?
Millions of people are willing to purchase NFT. It’s not an exaggeration to say that NFT is the future of art collecting. I’m sure the guy who bought Elon Musk’s tweet or whoever paid $69.3 million for the picture Everyday: The First 5,000 Days by Beeple would agree.
If you are a buyer, you can financially support your artists and use the NFT at a basic level like posting it online. Plus, you’ll have the bragging rights of owning the art. Or, in case you’re just a collector, you can treat NFT like any other asset where you invest in it and resell once its value goes up.
In addition, suppliers are vast in this new industry, ranging from artists who want to sell their artworks to brand that are looking to create an influence. Not long ago, Taco Bell released 25 NFTs taco-themed GIFs and images which sold out in just 30 minutes. And those NFTs are now being resold for up to 10 folds their original price. What a way to market.
How to buy NFT art?
Originally, NFTs existed on the Ethereum blockchain, although other Blockchain platforms also support it now - like Celadon Coin based on Binance Smart Chain
Application of NFT art
Ownership of art
Artists in the field of music, painting, cinema,... always face problems related to copyright. NFTs have changed this. It allows creators to rent out artworks, sell or display them how they wish. With the NFT, however, you can buy any artwork and convert it into a digital file in form of a token, then upload and store it on the Blockchain platform to prove your ownership of this artwork.
With the support contract from Blockchain, the copyright and legal ownership of the artwork are under protection. This means no one can copy or reproduce the work because the information about the artwork has already been recorded in the Blockchain system. Although, there’s a problem is that the legal rights of Blockchain’s contracts have never been tried or tested in court.
Unlike traditional art where artists have to rely on clients and distributors to sell their art, NFT enables artists to monetize their art as they wish. This is considered a faster and more accessible way for designers to create their work and enjoy the fruits of their creativity. You don't have to track your clients for payments, prepare files for printing, listen for feedback, and edit your work to suit their tastes. All you need to do is put your work out there and wait for someone to buy.