NFT Art: The What and How for Creatives
Feb 10, 2022
What is NFT Art?
A Non-Fungible Token of art (NFT Art) is a digital file associated with artwork stored in a digital ledger that uses secure blockchain technology. The digital file is stored as a uniquely identifiable token, making it non-interchangeable.
NFT art can be an original digital creation or representation of physical artwork. NFT helps create proof of ownership of digital art and monetize it. This proof enables people to sell or buy digital assets on digital markets.
How Does NFT Art Work?
It all starts with creating digital artwork which is either original or represents a physical artwork using designer software. Creatives then mint the artwork. You may be wondering, what does it mean to mint an NFT?
Minting is the process of adding your digital artwork to a blockchain. In other words, it’s turning digital artwork into NFT. Once the NFT is created, art collectors and traders can buy it via the marketplace. If you want to buy an NFT, you will likely follow this process:
1. Create a digital crypto wallet – the wallet enables you to pay for the NFT.
2. Fund your wallet with cryptocurrency. If you don’t own the required cryptocurrency, you can buy from crypto exchanges such as Binance.
3. Register an account with your preferred NFT marketplace
4. Connect your wallet to the NFT marketplace account you registered
5. Select your preferred NFT art.
6. Buy the NFT art. You can buy NFT art through bidding or at a fixed price depending on the marketplace and how the seller has set the sale format.
The above list is a descriptive process only. The process may differ depending on the NFT marketplace you choose. Once you buy the NFT, you can view, use or sell it.
What Does NFT Art Work Mean for Creatives?
NFT art has turned out to be a blessing to the creative industry. Designers, artists, traders, and art collectors no longer rely solely on art galleries, dealers, and auction houses to sell or buy the artwork.
Sellers and buyers can meet online and trade artwork easily and quickly. Random buyers, traders, and art collectors will also have a wide variety to choose from at the comfort of their homes or offices.
The top gainers in this growing innovation are the creatives. They will reap more profits due to:
1. Global reach - Physical artwork was popularly traded in physical spaces before the invention of NFT art. The shift to digital artwork and online platforms enables creatives to reach global audiences. This advancement is helping creatives to access niche and virgin markets that were previously inaccessible or too expensive to explore. A broader market can translate to more profits. It is also an advantage to buyers who have access to a bigger collection of art.
2. Enhanced ownership of digital artwork - NFT art has greatly improved ownership of the artwork. Minting digital art is advancing ownership and record-keeping through blockchain technology. Creatives who tokenize their artwork are being recognized globally for their work. Theft of original artwork is also reducing. This aspect has boosted buyers’ confidence that the NFT they are buying is genuine and not stolen.
3. Increased income levels - A global reach will increase the number of art buyers and increase creatives’ earnings. The earnings may be in the form of direct sales or royalties. NFT art owners can charge a royalty fee every time their artwork is sold to another buyer in the future.
NFTs have revolutionized the creation, storage, and trading of artwork. This invention encourages more artists to join the creative industry, improve their earnings, and advance artwork.
On the other hand, art collectors and traders have access to a global market, a bigger collection of art to choose from, and an easier way to buy the NFT through online marketplaces. However, NFTs comes with challenges, such as high gas fees for trading cryptocurrency and NFTs. The NFT art prices are also affected by the fluctuation of cryptocurrency prices. Additionally, scammers can create fake NFT stores or sell an NFT associated with someone else’s digital art without their permission.
If you want to buy NFT Art, do thorough research on the NFT platforms and cryptocurrency exchanges you intend to use to avoid being scammed. Exercise caution throughout the process of buying or selling the NFTs.