First things first, what does NFT stand for? It stands for non-fungible tokens. Now, it’s time to translate it into common, understandable words.
Guide to non-fungible tokens
As CNN experts explain, “[they] are the latest cryptocurrency phenomenon to go mainstream,” furthermore, “NFTs transform digital works of art and other collectibles into one-of-a-kind, verifiable assets that are easy to trade on the blockchain.”
To take a step back, blockchain technology is a recording system, a way to store information. And, it’s almost impossible to hack or change.
Through blockchain, users can have secure transactions. These happen through a network of computers, also known as a block. Each block contains different information and transactions. Thanks to the unique cryptographic signature, anything that happens through blockchain is 100% safe. Indeed, this is digital money.
Hence, NFTs aren’t currency, but digital content. And the transactions happen online, through blockchains. These non-fungible tokens can be anything creative, from images to works of art. Simply, any creative content that isn’t money.
NFTs and artists
Each NFT is unique and, thus, rare. And thus, valuable. Artists use them to raise awareness about their brand and, obviously, to make income. With many galleries and live exhibitions closed due to Covid-19, art has moved online. And the creators have followed this trend. It’s crypto art at its best, and everyone in the art world loves it.
For example, the famous auction house Christie’s. Since it’s been around since 1766, it’s easy to assume it knows something about trends. Recently, it jumped on the NFT wagon. In fact, Christie’s auctioned the piece Everydays -The First 5000 Days, by the crypto artist Beeple. After two weeks of bidding, the final sale price was $69,346,250. Even its creator was shocked.
“I think it means that digital art is here to stay,” Beeple said.
The website nonfungible.com monitors the market. And it reports shocking numbers. For example, in 2020, over 220.000 people bought and sold crypto art, for a total rough value of $250 million. Compared to 2019, the numbers quadrupled. And it seems like the trend will hold steady in 2021. In fact, the website reports a total number of sales up to 5449374 for a total of money volume of $501.596.060,22.
Indeed, crypto art and NFTs are an opportunity for all digital creators.
The best platforms
Here are the best networks to access non-fungible tokens to purchase your favorite art.
- Rarible, where users can even buy glamorous memes
- OpenSea, backed by the blockchain Ethereum, it’s a secure platform
- Nifty Gateway, which trades “nifties”
- Super Rare, where users can trade rare digital artwork
- GhostMarket, features an easy and glamorous interface for the users
- Foundation, a creative playground for NFT artists
As NFTs become more and more popular, more platforms appear. We are also starting to see the rise of NFT Index Funds. The advice is to always do your research, especially on safety.
Non-fungible tokens are an opportunity for both artists and art collectors. While some critics believe this trend is overstated and overvalued, people seem to appreciate digital art. Or, at least, they believe in it. To many, this is an investment. Indeed, an investment that looks glamorous.
Creators have found original ways to deal with the current situation. Not just crypto art. But even with the creator economy. Find out more about this trend here!