The future has arrived in the art world. The rise of NFTs has many individuals who have an interest in creative works might wonder if this has become the new “normal” in the digital art world. Regardless of its increasing popularity and to some extent, availability, NFTs remain somewhat mysterious to those who are not familiar with such technology. Furthermore, they open the door to a whole other world of decentralization such as cryptocurrency and blockchains.
What are NFTs?
An NFT (non-fungible token) is a digital asset, usually a work of art, music, an in-game item, or video. You can purchase an NFT only online usually with cryptocurrency. Generally, they are encoded with the same software as most forms of cryptocurrency. Plus, they are guaranteed as 100% unique and irreplaceable. Unlike other artistic works, you can’t hold it; you can’t touch it—it is entirely digital, which is why, in contrast to paintings or lithographs, you’ll never find a duplicate or a print. However, you can purchase “ownership” of the work. In other words, you can purchase prints of Les Toits de Collioure by Matisse, but only one person in the entire world will ever own the original painting. The same goes for NFTs. Several copies can be downloaded, but only one person has proof of ownership. Also, the artist still owns the copyright to the NFT. Ironically, though, the vast interest in NFTs doesn’t relate directly to the works themselves—rather the technology that artists utilize to create them.
Likewise, you can find the majority of NFTs on a blockchain called Ethereum. As you might have guessed, Ethereum is also a cryptocurrency but at the same time, supports NFTs as well.
What’s a Blockchain?
A distributed database that is copied and shared across a network of computer systems comprises a blockchain. Basically, it is a digital ledger of transactions. The records mostly pertain to cryptocurrency, particularly Bitcoin, smart contracts, decentralized finance, state identifications, a company’s inventory, and of course, NFTs. One distinctive trait is that a blockchain’s history and information are irreversible. They can’t be altered or erased. Plus, the system can’t be hacked. Nonetheless, all transactions on a blockchain can be viewed by anyone who employs blockchain explorer by virtue of their decentralization. Likewise, those who utilize blockchains can remain anonymous while maintaining the transparency of transactions and other information.
Types of NFTs
Just like each sub-genre of art has different media, styles, and techniques, there are also different types of NFTs. In fact, a new variety seems to crop up frequently; however, we’ll look at a few common categories.
Computer Generated NFTs
Computer generated NFTs might be the first type that comes to mind. After all, this is the first type to gain worldwide attention in the digital art world. An artist fashions this type of NFT from a plain template and incorporates other smaller attributes and accessories. The computer “figures out” the proper algorithms for putting the images together and then applies the combination onto the original template. The computer repeats the process to fabricate several similar images, but no two images are alike.
Music NFTs
NFTs also come in the form of original music created by the artist, but what differs between purchasing ownership of the work and simply downloading it from a streaming service is that the customer buys directly from the musician. This greatly benefits artists who gain 100% of the profit as opposed to just a percentage. The blockchain, in turn, shows the record of the transaction and ownership but doesn’t contain the song or album itself.
Handmade Works of Art
Although “handmade” is a more figurative term, this NFT type comes closest to this description. Instead of using a template and creating similar images, the artist utilizes digital software to design handmade NFTs. The reasoning behind their purchase deviates from that of the computer generated because the image seems even more unique and rarer to the buyer.
NFT Fashion
Even some of the biggest players in the fashion had to be a part of the NFT revolution. In 2021, high-end companies, like Louis Vuitton and Gucci created their own NFTs with lucrative results. Additionally, later that same year, Nike, broke into the Metaverse with their purchase of a company whose specialty involves fabricating virtual shoes—hence the beginning of the “virtual Nike sneaker.” Naturally, a person can’t wear these items, but again, the draw relates to the ownership of something that no one else possesses and an immortal record on the blockchain.
How NFTs connect collectors and artists?
You might wonder how collectors find NFT artists. And as mentioned, what is the draw toward NFT? In one regard, you have a younger generation of collectors who spend a nominal amount of time on the internet. Thus, the logistics are simple. A person finds a platform and/or blockchain to see what’s been “dropped.” Often, artists present a preview of the art that they’ll soon drop. And that is one place where their initial connections occur. Others have their own website. Regardless of the platform, an artist achieve more success if a collector, who’s interested in the art for its unique expression and not just ownership, can reach out and chat about the meaning behind the piece, how it was created, and what significance it has with artist’s psyche, view of the world, and so forth. Basically, a connection if not a relationship is established between the collectors who support the artists’ messages and the artist themselves.
How to make an NFT?
Whatever the subject is, you need to be sure that it can be transformed into a non-fungible token or at the very least a png. file. Next, you set up your crypto wallet and select which type of currency you want to obtain. Having cryptocurrency on hand allows you to pay the fees involved with the sales process.
Next, you’ll need to choose a platform to sell your NFT. The two most commonly recognized are OpenSea and Rarible. However, since the start of 2022, many other platforms have appeared. Therefore, you might consider comparing fees and terms to see which is best. In addition to the platform, you’ll also choose a blockchain—Ethereum being the most commonly used. From there, you mint or upload your NFT to your wallet and then start selling.
Is it possible to buy NFTs only with cryptocurrency?
Considering that most (if not all) platforms list their prices in their preferred cryptocurrency, a collector can only use cryptocurrency. For example, you’ll use ether to purchase an NFT on the Ethereum blockchain and SOL if it’s sold on Solana. Some platforms do accept fiat currency but not credit or cash on others.
Platforms to buy and sell NFTs
Aside from Rarible and OpenSea, you have other options to buy and sell NFTs. These include:
- The Axie Marketplace
- Larva Labs/Crypto Punks
- NBA Top Shot Marketplace
- Super Rare
- Mintable
- Theta Drop
There are many more. To choose the most suitable platform for what you’re selling or buying, you’ll need to look closely at their terms and fees and the type of NFT that they specialize in.
So, the NFT seems to have taken the art world by storm, but much remains to be seen as to whether this trend will last and for how long. Furthermore, you would also need to consider technological changes that might affect what can be fashioned into an NFT. For the time being, though, more artists are using this mode of creating and making a statement without fear of censorship, and collectors are keeping their thumbs on the pulse of this new form.