After
reading a recent article entitled "Boy makes $400,000 in Non-Fungible
Tokens (NFT) with digital Whale Art", I decided it was time to do a
little research and write a short blog to our readers providing a
very brief introduction on the topic of Non-Fungible Tokens (NFT) and
their use in the Art World.
I
started my
research with
an
interesting and amusing article about Non-Fungible
Token (NFT) and
Art
Marketplaces.
It
was a good read, but unfortunately,
after reading the article I was just as confused about
the topic as
when I started.
A
much
more informative article was published by The Atlantic called NFTs
Weren't Supposed to End Like This.
According to the article, a Non-Fungible
Token (NFT)
is a digital asset that represents real-world objects like art,
music, in-game items and videos and
they
can
be
bought and sold online, frequently with cryptocurrencies that
use blockchain technology.
Read
Unraveling
the Confusion about
Blockchain Technology and Bitcoin
Non-Fungible
Tokens (NFT)
exist on a blockchain, which is a distributed public ledger that
records transactions. The
use of blockchain
technology and NFTs afford artists and content creators a new
way to
monetize their artwork.
For example, artists no longer have to rely on galleries or auction
houses to sell their art. Instead, the artist can sell it directly to
the consumer as an NFT, which also lets them keep more of the
profits. In addition, artists can arrange
to receive
royalties whenever their art is sold to a new owner. Artists
generally do not receive future proceeds after their art is first
sold, so
this is an attractive new feature.
Are
Non-Fungible
Tokens (NFT)
worth the money—or the hype? Some experts say they’re a bubble
poised to pop, like the dotcom craze. Others believe NFTs are here to
stay and will change investing forever. We’ll
find out over the coming years. See
Non-Fungible
Tokens (NFT)
on
Wikipedia
Getting
Started:
If
you’re keen to start your own NFT collection, you’ll need to
acquire some key items. First, you’ll need to get a
digital wallet that allows you to store NFTs and cryptocurrencies.
You’ll likely need to purchase some cryptocurrency, like Bitcoin or
Ether, depending on what currencies your NFT provider accepts. You’ll
then be able to move it from the exchange to your wallet of choice.
You’ll also want to keep various fees in mind that most exchanges
may charge you. Explore
Coinbase and
Exodus
Once you’ve got your wallet
set up and funded, there’s no shortage of NFT sites to shop for items.
Currently, the largest NFT marketplaces include OpenSea,
Rarible, Nifty Gateway, and
several others. Finally, approach NFTs just like you would any
investment: Do your research, understand the potential risks, then if
you decide to take the plunge, proceed with caution.
Other
selected
articles
on Non-Fungible
Tokens (NFT)
that
you might want to peruse include:
To
conclude this very brief introduction to the topic of Non-Fungible
Tokens (NFT)
in
the Art
World,
here
are a couple of parting thoughts.
Bottom
Line:
Non-Fungible Tokens (NFT)
in
the Art
World
gives you a new
way
to sell your
works
online.
But...
Caution: Investing in
NFTs is a largely personal decision. If you have money to spare, it
may be worth considering, especially if a piece holds meaning for
you.
* Read How to Create, Buy and Sell Your Non-Fungible Tokens (NFT) Artworks
