NFTs are the new hot thing in 2021. Let’s explore what NFTs are and how creators can get started with cryptoart.
During this coronavirus pandemic we’ve seen it all in the digital world: incredible online stock trading, unbelievable price growth for cryptocurrencies, and the rise of NFTs. For creators like motion designers or 3D artists, NFTs may become a new source of revenue. And this is so real!
What are NFTs?
Blockchain that powers cryptocurrencies came into being slightly over 10 years ago. It is a new age technology that makes use of peer-to-peer verification and validation through electronic ledgers. In simple words, each online transaction is encrypted into an unchangeable record with a timestamp and a link to the previous transaction. You can trace all the previous transactions within the ledger.
By buying a bitcoin, you become its owner, which is validated via the blockchain technology. In case of cryptocurrencies, the “coins” are identical and worth the same. NFTs or non-fungible tokens are unique. These tokens are minted and attached to digital files, whether these files are video files or any other type of digital element.
What is Cryptoart?
NFTs gave rise to cryptoart. How come? Since NFTs are unique, they make digital assets unique, which makes these assets more valuable. As digital art is easy to replicate due to the nature of digital information, cryptoart is a way to make digital files unique.
Who owns NFTs and Cryptoart?
Creating digital art and starting selling it as a NFT are two different things. Art creation is an individual process, but art selling with NFTs is a complex, multi-step enterprise. You can buy and sell NFTs on a number of marketplaces like SuperRare, Nifty Gateway, MakersPlace.
When an NFT is sold, the transaction gets validated on the blockchain. After the validation, the buyer owns it. But the buyer does not own the actual digital file and copyright to it. The buyer is limited to owning the access to the NFT.
The original creator of the NFT is permanent. So the access to the NFT can change hands, but the original creator is not transferable. In addition, the creator gets a small commission every time the NFT is resold.
Is it worth the effort?
Cryptoart is a very new market. We don’t know if it’s there to stay or if it’s a fad. But as blockchain has proved to be a viable technology over the past decade, its application finds new original ways to reinvent the traditional industries. The arts are not an exception. Their digital reinvention is an interesting way to give creators more ways to monetize their art in a more open and global way.