What The NFT?
While the first NFT was created back in 2014, this concept of rare collectables is still very mysterious–and very confusing for many. We’re here to break it down to make this whole metaverse conversation a little less intimidating.
Beeple’s Everydays - The First 5000 Days posted by Christie’s back in March 2021 made some major news waves as being the first purely digital artwork sold by a major auction house.
The Basics
NFT stands for non-fungible token. Merriam-Webster defines a “non-fungible token as a unique digital identifier that cannot be copied, substituted, or subdivided [and] each have their own unique value, so they’re not tradable on a like-to-like value basis.” Meaning that a single NFT is one-of-a-kind, similar to how a rare trading card is valued.
These can include any digital files, including photos, videos, and audio. Which makes it the perfect opportunity for artistic exploration and experimentation.
NFTs live on a blockchain, a digital database or ledger that acts as the keeper of information on transactions and transfer activity. Assets are distributed in a way that makes it next to impossible to be forged, changed, or tampered with. This high-security record-keeping that enables these digital assets and information to move freely, openly, and safely.
Why are they valuable?
This digital disruption in the fine art collecting community has been contentious, but is clearly making a major statement in the art world.
While anyone could very easily right-click and save a JPEG, for example, the collector is the true owner of it. Many compare this to them owning the ‘original Mona Lisa of NFTs.’ Any copies are simply reprints with no trading or selling value in comparison.
Artist Mad Dog Jones recently sold his piece REPLICATOR (2021) for $4.1 million at Phillips, becoming the most expensive living Canadian artist. Bidding started at $100.
This copy of REPLICATOR (2021), and of Everydays - The First 5000 Days above, both have zero dollar value.
What does this mean for artists + creators?
The NFT world provides a decluttered, more democratized opportunity for artists and creators to sell their art. There’s no reliance on a gallery or art house, no middle-person to take a cut of commissions, and artists can also program royalties into their digital asset so they receive a percentage of future sales of the original piece. Plus, experimental approaches like multilayered Smart NFTs or programmable art give freedom to explore transformable digital art in new and interesting ways.
Where can I sell my art?
Our team is actively in the world of NFTs with ethos, our dedicated NFT platform created to help guide the process for artists and creators to connect with brands to create narrative-driven, future focused experiences in the digital collectible space.
There are other specialized NFT marketplaces that are dedicated for art purchases. A few include:
SuperRare
Nifty Gateway
Rarible
Async Art
MakersPlace
KnownOrigin
Cargo
Because this world is quickly growing and evolving, there are many other types of marketplaces where art can be sold or traded.
It’s a total art world game changer. The possibilities have only just begun.
Sources:
BBC News. (March 19, 2021). What are NFTs and why are some worth millions? Retrieved from https://www.bbc.com/news/ technology-56371912
Conti, R. & Schmidt, J. (May 14, 2021). What You Need To Know About Non-Fungible Tokens (NFTs). Retrieved from https://www.forbes.com/advisor/investing/nft- non-fungible-token
Kastrenakes, J. (March 11, 2021). Beeple sold an NFT for $69 million. Retrieved from https://www.theverge.com/2021/3/11/ 22325054/beeple-christies-nft-sale-cost-everydays-69-million
Little, K. (August 12, 2021). What Is Blockchain? The ‘Transformative’ Technology Behind Bitcoin, Explained. Retrieved from https://time.com/nextadvisor/investing/cryptocurrency/ what-is-blockchain
Steinwold, A. (October 1, 2020). Quick Overview Of The NFT Ecosystem. Retrieved from https://andrewsteinwold.substack.com/ p/-quick-overview-of-the-nft-ecosystem