Digital art of the future explained.
Over this last year NFTs have surged in popularity and things have gotten more complicated. Most of the current buzz centers around digital art.
An NFT — short for non-fungible token — essentially allows its buyer to say that they own the original copy of a digital file, in the same way you might own the original copy of a piece of physical art or the master file of a music recording.
We live in a very digital world and that includes art. We are here to help explain what it all means. We stay on top of the news and keep you updated.
Digital art is work made
with digital technology or presented on
digital technology. This includes images such as png, or jpeg files created completely on a computer, laptop, smart phone, or tablet and or hand-drawn images scanned into a computer and finished using a software program like Adobe Illustrator.
NFT stands for "non-fungible token." At a basic level, an NFT is a digital asset that links ownership to unique physical or digital items, such as works of art, music, or videos.
Fungible items can be exchanged with one another with ease because their value isn't tied to their uniqueness. For example, you can exchange a $1 bill for another $1 bill, and you'll still have $1 even though your new bill has a different serial number.
Non-fungible items aren't interchangeable. With NFTs, each token has unique properties and isn't worth the same amount as other similar tokens. Rather than being intershangeable, each token is effectively stamped with its own number.
What's an NFT exactly?
NFTs are records of ownership encrypting a unique piece of information into a blockchain therefore, protecting it's sensitive information from hackers. Recording ownership, but not itself the same thing. Similar to a house deed. Non-fungible tokens, often referred to as NFTs, are blockchain-based tokens that each represent a unique asset like a piece of art, digital content, or media. An NFT can be thought of as an irrevocable digital certificate of ownership and authenticity for a given asset, whether digital or physical.
How do NFTs work?
NFTs are largely part of the Ethereum blockchain, although other blockchains have implemented their own version of NFTs. Like bitcoin or dogecoin, Ethereum is a cryptocurrency, but its blockchain also keeps track of who holds and trades NFTs.
What's a blockchain?
Blockchains are complex, but essentially they allow you to store data without having to rely on a single party such as a government or bank, to uphold or maintain it and to keep things secure and accurate.
What is crypto art?
Art is the most common use case for NFTs, and it is no wonder that crypto art in NFT form has recently exploded in popularity. The fact that the novel blockchain technology creates conditions that now allow artists to earn tens of millions of dollars from their digital paintings attracted many creative people who could only dream about such a level of ease and accessibility before.
The biggest drivers of the crypto art landscape are the artists that create/recreate pieces to be stored over the blockchain. Although NFTs can represent numerous aspects of the digital world, the first step begins with the creation of digital artwork. Digital art can be created by using readily-available software and a personal computer in the form of GIF, JPEG, videos, 3D images and similar art forms.
While the aforementioned digital art can be easily replicated and distributed over the internet, crypto artists need to certify and mint a nonfungible-token that is linked to the authenticity of the art created. Once certified, the art can then be uploaded to various marketplaces and marketed to potential buyers.
It is important to note that crypto art is also subject to copyright laws and artists are expected to create, mint and sell unique NFTs while respecting the ownership of other artworks.
Do I have to use digital money to purchase an NFT?
The short answer is yes, sort of. I'll explian. Say you found an interesting piece of digital art on one of the websites that sell NFTs. You tell yourself, I'm going to try and buy it. You start looking around to see how much it costs. Okay, fine, you tell yourself, I can't find the cost of this thing, maybe they want me to add it to a cart before telling me the cost. You look around for the cart. Now you're really confused because you can't even find a cart to put it in. At that point, the question becomes how do people buy these things instead of why do people buy these things.
Here's one solution I've found that might make the process less complicated. Over at Opensea NFT marketplace they say they make NFT buying easier with the use of Moonpay. You can use MoonPay to buy NFTs with a credit or debit card if you live in a supported region. The Moonpay platform helps you convert fiat currency into cryptocurrency for purchase of NFTs with an added processing fee. After checking into Moonpay, I was not comfortable answering this question with a solid yes, it is more of a maybe answer because it again boils down to how much time and patience to want to put into buying an NFT.
On the Coinbase website you can easily convert Ethereum (ETH) to US Dollar.
Can an NFT be stolen?
A digital file or computer file can be copied any number of times, including the art that comes with an NFT. In contrast, NFTs give you something that cannot be copied: ownership of the work (though the artist can still retain the copyright and reproduction rights, just as with physical artworks). If we use physical art collecting as an example: anyone can own a Monet print. The original, however, can only be owned by one person. Each NFT has a unique signature that verifies authenticity and any transactions related to it — who created it, who owns it, who sold it and for how much, etc. Creating an NFT is called minting. When a digital file gets minted, an NFT is generated and stored on a blockchain . Blockchain technology provides a record of ownership on a public, distributed database that anyone can see. This record of ownership also allows for the original creator to always be credited and paid royalties, no matter how many times an NFT is sold or who owns it. The history of ownership, from creator to current owner, is called provenance , and it’s a concept already in use in the art world.
Are NFTs a good investment?
Buying an NFT because you like it, or maybe even to earn (or lose) a few quick bucks is one thing. But investing in NFTs is another. Again, it's a nascent space. Even a Van Gogh painting or a rare Babe Ruth baseball card required some passage of time before becoming very valuable.
Given the digital nature of NFTs, it's hard to compare them to prized physical artworks, such as statues and paintings. On the other hand, we live in a world where one Bitcoin is worth more than $30,000, so things from the digital realm can certainly be very valuable and even sustain that value over longer periods of time.
In any case, if you plan to invest in NFTs, you'll need to dive deep into this complex world because each NFT market is slightly different. It's also pricey — trading on Ethereum can be quite costly as the network's recent congestion is causing fees to rise. Finally, you'll need to think strategically and follow the often rapidly changing cryptocurrency trends.
In short, it's possible to earn money by investing in NFTs, but you'll have to do your homework.
Why are some NFTs more valuable than others?
Just like pieces of art in the physical world, NFTs can be rare and valuable. Generally, when an NFT is sold on a marketplace, there’s a bidding process where the price of the NFT is determined by how much demand there is for it.
Johnny is one of the best at explaining complex issues in relatable ways. He explains NFTs in this video. "Finally someone who is willing to teach us younger guys instead of pushing some bs course on us. Appreciate it" - lamaris (YouTube)
Comedian Jim Carrey releases his second NFT artwork on SuperRare. The piece titled ‘Goon in the Moonlight’ is on auction until Thursday, with a reserve price of $50,000 or 29-30 Ethereum.
The United States Office of Government Ethics (OGE) issued a legal advisory recommending various instances when senior government officials are required to disclose their investments in nonfungivle tokens (NFT)
Eminem and Snoop Dogg are in the news for their new music video that features animated versions of their BAYC (Bored Ape Yacht Club) avatars.
Beeple, one of the world’s most famous non-fungible token (NFT) artists, has a long track record of ruthlessly taking on celebrities, athletes, and public figures. Now, the creator has set his sights on U.S. President Joe Biden with commentary on a current issue.
Let’s take a look at what the popular music streaming platform is bringing in terms of NFT sales, promotion, and other similar technologies.
The involvement of individuals in the NFT space is growing rapidly. A lot of people are now creating their NFTs, while others are interested in buying or collecting NFTs.
The images above are an example of a character that is part of a collection with different backgrounds, hair color, and, skirt color.