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What is NFT Art?

BitForex Editor
Mar 11, 2021

The advent of NFT, otherwise known as Non-fungible tokens, has revolutionized the crypto space in a way that no other digital currency has been able to. Unless you have been living under a rock then I guess the concept of NFT's (Non-Fungible Tokens) should not sound strange to you. The all too important question at this point is what the cause of all the fuss surrounding NFT's is? Well, it is simple, really, today; this can be traced to the surging demand for digital artworks, which are popularly referred to as NFT's. NFT's, or rather Non Fungible tokens, are showing themselves to be a major game-changer in the evolution of the field of creative endeavors by providing the opportunity for creators to earn from people who appreciate their content.

In reality, the opportunity for a person to create artworks on the blockchain as NFTs basically means that an artist's creative content can be sold worldwide on decentralized marketplaces. What's more, is that NFTis equipped with a feature that allows an artist to earn a certain percentage every time the NFTchanges owner or is sold. Many people have been selling their artistic content for huge amounts of money, including grimes, who sold her digital art for almost 6 million dollars. In 2018, Paul Lamborghini Kell was all the buzz when he paid a whopping sum of $US38,000 for a digital artwork that was already available for anyone to view and even download. He, in turn, sold the same artwork along with the internet meme Pepe the frog for an even higher amount, $US320,000.  

The question that might be going through your mind at this point is, why would anyone pay such an amount or even pay money at all for an online artwork that they can view and download for free. In context, the answer points to the hearth of the newly emerging digital economy, which has paved the way and provided new opportunities for artists to earn more money for their work finally. A New York gallerist told wired that what creates value is ownership. Basically, NFT's do not only allow you to have ownership, but it also allows you to have ownership on the blockchain. In other words, your ownership is transparent for anyone to see. Moving forward, what exactly are NFTs and how do they work.

Brief Insight Into NFTs And How They Work

As earlier stated, NFT is an acronym for "Non-Fungible Token". This token is somewhat similar to Bitcoin; however, there is a distinct difference, while you can trade bitcoin and have more of it. Each NFT, on the other hand, is unique. You possess the token that best suggests you own something, for example, an art piece; while it is possible for you to trade it if you do, you will, however, be getting a piece that is entirely different. Non-fungible tokens are cryptographic assets on a blockchain with one-of-a-kind metadata and identification code that differentiates them from one another.

Fungible basically means "exchangeable". One could say that a movie ticket is fungible, and this is because it can be used by someone else. On the other hand, a plane ticket can be categorized under non-fungible, and that is because it can't just be given to a random person you find at the airport after you have decided not to board your plane. As earlier implied, Non-fungible token are unique because they are connected permanently to, for example, music or digital artworks. It is impossible for them to be separated as the token is art.

It is easy for one to understand that a piece of artwork can be created to exist on a screen, for example, your computer, phone, tablet, amongst others. Such a work of art cannot only be viewed, but it can also be downloaded or screen-grabbed by anyone online. However, the more profound concept that revolves around NFTis it's agreed-upon ownership and value, meaning that even if anyone can view it, download, print or even choose to hang up such sad art work, in reality, only a select few can actually own that specific art piece.

How Do NFTs work?

This basically depends on the platform, however, based on. Non- Fungible tokens are created on Ethereum's blockchain, which is unchangeable, meaning it cannot be tampered with or altered. No individual is capable of recreating the exact copy or even undoing your ownership of an NFT. Also, no one can create, sell or even purchase an NFTwithout seeking permission. Lastly, a Non-Fungible token is generally represented by a digital currency like an image. However, it is necessary to note that it is not just an image that can be replicated easily; however, what makes it unique is that it exists as a digital object on the blockchain.

Are NFT Arts Just A Fad?

NFT's have been around for years; however, it was not until recently that the market exploded. In February, an animated flying cat that had a pop-tart body was sold at an estimated $US600,000. It was soon topped by an animated video of what was supposed to be Donald Trump on the ground in an urban park; it was purchased for 6 million dollars.

OpenSea, which is a marketplace for Non-Fungible tokens, reported selling an estimated 86.3 million dollars' worth in February, which was way higher than January, which recorded 8 million dollars. Some are of the opinion that the "stupid money" being paid for Non-fungible tokens is a current example of a speculative bubble that is bound to burst soon enough, but for others, it just means that artists get to earn and benefit from their creative work. In this digital era, objects can be copied, reproduced, cut, and pasted, and nobody bothers to pay for the original; however, with NFT's, JPEG can be likened to the uniqueness of oil painting. Instead of having a copy, buyers can pay to own the original artwork, thereby allowing artists to benefit from their content.

There is no doubt that NFT's, collectibles, and even digital goods will play a significant role in the next era of the digital economy. NFT continues to provide the opportunity for artists to showcase and still earn from their works, and while Non-Fungible tokens have more to offer, only wonder what other potentials remain to be untapped.

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