The popularity of NFT in the art industry has prompted many famous artists and creators to explore this exciting space to earn riches off them while also protecting their artwork. This blog piece attempts to put together the pros and cons of the new technology for the NFT marketplace for art and also how it can have a significant impact on the industry in the future.
Not long ago, Jazmine Boykins posted her artwork online for free. The 20-year old digital artist’s dreamy animations of Black life were garnering a lot of praises on social media platforms – her accounts were overflowing with likes and comments. Yet she still hasn’t come close to making the money off them that one would expect from sales of such work in college at North Carolina A&T State University where arts were touted as “essential” back.
However, months later she has been able to generate handsome revenues selling the same pieces for thousands of dollars and also witnessing a growing following thanks to an emerging technology: Non Fungible Tokens or NFTs. The inception of NFT in the art industry is upending the rules on ownership.
The very first time when NFT marketplace for art catapulted into fame was when a purely digital art-based NFT – “Everyday’s — The First 5000 Days” drawings by Mike Winkelmann -an American digital artist, sold for a whopping $69M at Christie’s auction. The staggering sale of the NFT-based artwork positioned the digital artist Winkelmann a.k.a Beeple, among the top three most valuable living artists. It was just the start for how digital art files were marketed and sold and indicate the prominence that NFT in the art industry has come to acquire. The sale has drawn immense attention and a greater number of NFT in the art industry, including but not limited to GIFs or even tweets have been thrust into this spotlight of a ‘digital boom’.
After reading all this, if you have been left wondering about what NFT marketplace for art is, how it works and how this revolutionary technology would have an impact on the art industry then this blog might be just what you needed to go through. It aims to answer all relevant questions pertaining to NFTs, how you can monetize your creative work arising from this virality and its role in revolutionizing the art domain.
Overview of NFT in the Art Industry
Although NFTs have not been a new concept as they have been in existence since 2014 but it is only over the last 4-5 months that it has become a trending topic, literally breaking the internet!
NFT in the art industry are virtual tokens which can be owned by someone and serve as certificates for digital items for real life objects such as music, art pieces, videos, pictures. They come with unique identification numbers or artists’ signatures to certify that their data is secure on a unique ledger on the blockchain network – Bitcoin’s Blockchain (BTC) and Ethereum, which are the backbone of cryptocurrencies.
NFT art, also popularly referred to as crypto art, is digital artwork that applies non-fungible tokens (NFT) for trades. Artists are able to sell their artwork with complete transparency and security. NFTs use blockchain technology which authenticates ownership. Also, it cannot be replaced or altered because of its non- interchangeable nature, which makes it perfect for artists to sell their digital artwork. NFTs are not Bitcoins, dollars or gold and they cannot be divided nor combined.
How do NFTs work with regard to buying and selling artwork?
The identifying information in a digital artwork can be encoded into smart contracts using NFTs. This includes who created the piece, previous owners and current holders of ownership to find out more about its provenance or history which is important for many collectors today who want insight into where their art comes from before they buy it!
The art industry is using blockchain technology to claim ownership of their prized possessions. Artwork can now be traded on a public ledger with non-fungible tokens that are traceable, irreversible and unforgeable – providing an undeniable record for any buyer who doubts authenticity or origin. The person buying the digital artworks enjoys the exclusive right to the art piece after its purchase and there can only be a sole owner of a digital art file.
NFT marketplace for art allows for the creation of virtual artworks that can be bought, processed and validated without a moral arbiter. However, you may ask why spend millions of dollars when all the artwork and videos are available online for free? You can take screenshots or download them straight away without paying a penny! NFTs symbolize power in ownership-the buyer wants to prove they own something authentic. For some, the idea of owning an original artwork or piece is more valuable than what they are purchasing. They want to feel as though their purchase gives them power and control over an item that was originally meant for public consumption. NFTs allow buyers this sense because with each tokenized asset comes its own unique authentication process where anyone can verify ownership through blockchain technology.
The NFT in the art industry is a revolutionary way to store and share artwork. With each piece being unique, the owner can enjoy exclusive rights over their own work while still having access in real time with other collectors through trading platforms that are built on this new technology.
Relevance of NFT in Art Industry – Pros and Cons
NFT art is having a big bang moment and the whole concept may seem bizarre at its face value going by how some art collectors are ready to shell out as much as eight figures for art pieces that can be easily shared online or downloaded for free. Although there are several critics that have called the NFTs just a fad that many suspects would lose its fizz sooner than expected, it is taking the crypto world by storm, garnering attention from many quarters. Critics think it’s just another bubble that will inevitably pop, like this year’s mania around meme stocks such as GameStop or even more recent ones in cryptocurrency markets where everyone lost money. Despite the scepticism around it, the NFT marketplace for art is drawing attention from a lot of artists, collectors and also speculators who would want to earn their riches off this new fad.
Pros of NFT marketplace for art
👉 Ownership of digital art
An artist’s work can now be protected by linking it with the NFT marketplace for art. It is difficult, if not impossible for others to copy their original digital art and sell them on the market because of how blockchain will show details such as current owner or previous owners who are also entitled to enjoy that particular piece from an artist’s portfolio in its rightful place at any given time.
NFTs allow artists to permanently preserve their work and make it difficult for others to imitate their work or create duplicate artworks, thus driving up the value of original artwork. This is why many artists are integrating links into NFTs, hence making it almost impossible or difficult to duplicate and make money from such copied digital artworks. In crypto art, only the actual copy of the art creation as that is attached to the NFT documentation only counts, while all other reprints are not given value. Owner of the crypto art takes interest only in the specific copy linked to the NFT.
👉 A novel way to monetize art
The existing NFT marketplace for art enables designers to monetize their digital artwork in a totally different way than before. There’s no need for chasing clients, preparing files for print or waiting on feedback or revising the artwork to suit the client requirements. It makes the process of earning rich rewards quicker and hassle-free for artists as all they have to do is to upload their art file and watch as people buy what they like!
👉 Earn in the form of royalties
The artist can receive 8-10% of all future sales every time the artwork is sold on the NFt marketplace for art. There are certain NFT platforms such as Zora with the “Creative Share” option that allows users to buy and trade artworks immediately after release or before it hits major retail stores like Amazon. The royalties offered by some NFT marketplaces for art are an important part for artists seeking financial gain from their work.
👉 Providing opportunities to reach a global audience
Artists, in the past, made money only by engaging in buying and selling activity in exhibitions, events and physical markets. The virtual world of art collecting has opened up new opportunities for artists, who may not have had the chance to sell their work in physical spaces that happened earlier. With NFT trading now available online through platforms, buyers from around the globe can purchase original pieces by renowned designers at highly competitive prices. This aspect too is changing how we buy original artwork.
👉 Offering a steady income source
Graphic designers who are looking for a steady income might find it difficult to maintain the pace without additional projects or odd jobs. Stability in this industry comes with loyal clients and timely turnover of work, which can be hard if you’re just starting out–but luckily there’s an option! The immediacy that NFT in the art industry offer could potentially open up opportunities previously inaccessible by many creatives-especially those lower on society’s totem pole.
With the rise of new technologies like social media, more people than ever before have access to your work. And this is especially true for the NFT marketplace for art which allows designers round-the-clock visibility into global audiences—especially if they already have an online following! However, what can be really challenging is- converting these interested parties into buyers because there are so many different factors at play here such as finding out what works best with your specific brand strategy and fits well within your marketing plan.
Cons of NFT in the art industry
👉 Environmentally damaging
In a world where environmental damage is already being felt, the minting of NFTs or new coins can have terrible consequences. This may be due in part because many crypto ventures use massive amounts of power to create their currency – an act that helps drive global warming even further! A number of eco-friendly initiatives are being planned to reduce the environmental damage done by NFTs in the art industry.
👉 Susceptible to fall into the trap of scammers
The current NFT marketplace for art is drawing an extraordinary range of grifters and spammers. People are creating NFTs for artists’ works without asking permission or even letting the artist know! The danger with non-fungible tokens is that hackers can create copies of them and unsuspecting people buy these fake NFT’s which have no value. You need to make sure you’re checking the authentication before buying an item digitally.
👉 Suffers from volatility
The NFT market has been experiencing massive volatility, with prices spiking up over 2k% in some cases. This is because there are currently no mechanisms for pricing assets and owners can’t predict what their worth might be at any given time.
The Future of the NFT marketplace For Art
NFT marketplace for art is developed with the aim to provide a protected environment for digital artists to make money. All one needs is access to computers and they can create an asset with the potential for it to blow up in a big way. Whether your forte lies in creating realistic 3D motion graphics or blocky pixelated graphics like the Nyan Cat video, the NFT art space shows immense potential to prove to be an absolute game-changer for creators and artists across the world.
The NFT marketplace for art is about to undergo a revolution with blockchain and NFTs. Artists can be compensated for their work more fairly, while at the same time being protected from greedy corporations exploiting them! This new technology streamlines transactions within an encrypted system that operates 24/7 through its data storage capabilities
With the rise in popularity and accessibility of blockchain technology, more individuals are beginning to invest in Digital Art thus pushing the NFT in the art industry in the limelight. The market for these NFTs has already skyrocketed with collectors all over the world seeking out different types or styles that they can enjoy owning. This trend may continue indefinitely since there seems no sign so far indicating any decrease soon enough.
Prolitus’ NFT development Solutions
The market for NFTs is booming, with Prolitus offering the best development services. In addition to providing an excellent marketplace themselves, they work closely together as both buyers and creators looking into using these types of digital marketplaces
A successful business needs more than just good ideas; it also takes know-how about how things get done in this complex world where competition can be fierce! That’s why our team helps entrepreneurs find their focus.
We’re here to make your life easier. We build the best crypto apps that are fast, secure, and easy for you – no matter what stage of development or how much technical knowledge is required!
The NFT marketplace development has been a vital source for generating handsome revenues both from artwork sellers and buyers. One must keep in mind that upon carrying out any transaction to either purchase or sell off an online platform there is typically some amount required which we call “marketing fees.”
We want to be your go-to for NFT Marketplace Development. We’ll create reliable white-label marketplaces that get you the most out of every transaction, and then give it all a professional polish so clients know they can trust us with their business across any platform! Hire our services today if running an efficient virtual space is what matters most to you in this crazy new economy we live in now.