We are witnessing the rapid development of technology and the progress of digitalization and the virtual world. In the last few years, what has attracted substantial public attention in that virtual world is the emergence of NFT.
Undoubtedly, NFTs have been increasingly popular and massively used in various industries. Thus, it’s evident that it changes the art we admire so much. But, before we proceed to this matter, let’s see what Non-Fungible Tokens represent, shall we?
What is a Non-Fungible Token?
For those who don’t know, NFT is an acronym for Non-Fungible Tokens that differ from ordinary cryptocurrencies such as Bitcoin and Ethereum. They are non-fungible, i.e. non-interchangeable units of data.
They are stored on a digital ledger, usually on the well-known Blockchain technology and cannot be exchanged or traded for equivalency. Investors who want to determine the value of a particular NFT are using rarity tools to check their rarity, one of the most critical factors for pricing these tokens.
Generally speaking, NFTs are designed to provide you with some assets that cannot be copied, such as ownership of the work. Even though artists can retain reproduction and copyright, it is so, just like a physical work of art.
How is NFT affecting the world of art?
Non-Fungible tokens have an immense influence on the world of art. For artists, NFTs allow them to monetize their artwork without any intermediaries involved in that process. It allows them to sell their work that might not be suitable for the market.
Fans can support their favorite artists from all over the world by purchasing their Non-Fungible Tokens. If we consider that until the advent of these tokens, more than 90% of the revenue has been given to publishing houses, we can see how NFTs are improving the world of art.
Buyers can benefit from purchased NFTs
Another great thing with Non-Fungible tokens is that they’ve got a feature that pays its users a percentage each time NFT changes hands or gets sold. It is instrumental because if an artist’s work gets extremely popular and increases in value, buyers of that NFT will also benefit from that.
So, artists can benefit a lot from selling their NFTs. At the same time, buyers could get some fundamental usage rights, such as setting an NFT as a profile picture or being able to post that picture, audio, or video file online, etc. Besides, we must not forget bragging rights that buyers own the art and a blockchain entry to back it up.
NFTs are practical and profitable for Collectors
If you consider yourself a collector of Non-Fungible Tokens in the world of art, it is crucial to understand that NFTs can work as any other speculative asset. It means that collectors are buying NFTs hoping their value will increase over time, so they can sell them and make a significant profit.
What can we expect from NFT in art in the future?
For those wondering about the future of NFTs in art, we can expect NFTs to create a future where patronage of arts, in general, looks exceptionally different. Since all transactions on blockchain technology are direct, fans and collectors could directly support their favorite creators and artists without any third-party involved!