How disruptive will NFTs be on the art industry?


As blockchain technology and the internet continue to foster, the economy of information goods is flourished with the introduction of NFTs. NFTs are unique digital assets based on blockchain that allows verifying their authenticity and ownership. As a digital record is stored on the blockchain ledger, anyone can know about its owner.

For example, the original painting of MonaLisa by Leonardo Da Vinci is precious compared to its copies. Similarly, NFTs represent virtual assets that are distinguishable from copies. This approach has led the artists to sell their digital artworks and other collectibles and trade them as assets with protected copyrights in the form of NFTs. It is how NFTs have come to the forefront as worldwide artists have made millions with their auctioned artworks as non-fungible tokens.

NFTs are crypto-assets that specify a wide variety of tangible and intangible collectibles, from sports cards to virtual real estate. In the case of digital artwork, NFTs allow the issuer to encode identifying information into smart contracts. The information includes the details like who created the art, who owned it previously and who holds its current ownership.

In earlier times, artists created their artwork and sold them for money. Their artwork value could go up, but the actual artist could not reap any monetary profit. But, today, the arrival of NFTs is a real game-changer and revolutionary for artists. The NFTs allow the creators of information goods to exchange their artwork with complete verifiability to the actual issuer. Thus, the artists can monetize their creations and protect their copyrights.

How does ownership work for digital artwork?

NFTs use blockchain technology to track provenance and ownership without restricting the free circulation of artwork in the digital landscape. It implies that despite selling the artwork, it remains accessible to everyone in the digital realm. NFT facilitates the secondary trading of digital art. When any artwork gains more popularity and followers, the original collector can resell it for a higher price. With every possible trade, the actual artist makes 10% monetary profit with secondary transactions. It opens an expansive and transformative secondary market for digital artists and helps them grow financially when their artwork grows in value.

How do NFTs help in buying and selling the artwork?

When someone purchases an artist’s masterpiece in NFT, he buys a unique token representing the digital artwork. Thus, the ownership gets recorded and stored in a tamper-proof manner on the blockchain. Owning an artwork doesn’t limit how the artwork seems or shared digitally. Instead, it works similarly to an interactive trading card. With NFTs, owning a digital artwork is highly playful as each artwork is sharable and tradeable among collectors to raise its value. Also, the buyer holds an excellent reputation due to the collection of creative artworks with a high value.

How are NFTs revolutionizing digital artwork?

Being a part of this digital era, the demand for digital artwork is on the rise. The only problems associated with digital artwork are authenticity and uniqueness. When a digital artwork is created and shared online, it is downloaded and shared with numerous users. But, NFTs hold the potential to make digital artwork similar to physical ones. NFTs can turn digital artworks into the form of real-world assets. As NFTs reside on the blockchain, it becomes impossible to replicate the original artwork. These characteristics of NFTs provide a way for digital artists to monetize their artwork, stay authentic and prevent piracy, hacking, and duplication issues. The auction sales for NFT artworks make millions. The reason to buy a digital NFT artwork could be as a collection or as an investment. To be more precise, NFTs are paving the way for digital artists to connect directly with collectors and enhance the value of their creativity.

Digital art is gaining momentum with the highly secured and viable mediums of NFTs. There is an influx of money moving through the crypto space and the availability of artwork as NFT. The collectors are eventually realizing and getting engrossed in the exciting digital art world. This novel artistic approach via NFTs is defining and paving the way for artists and collectors. Besides financial ownership, NFTs unlock enormous ways to gain traction and generate new revenue streams for artists. Apart from transforming the digital art landscape, NFTs redefine how art holds substantial importance across the globe.

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