June 2, 2021 Amy Chung
NFTs (known as non-fungible tokens) have risen to become one of the most popular crypto trends in 2021. Global sales have jumped up to 55%, from $250 million to $389 million since 2020.
They can be used to virtually represent any type of real or intangible items. These would include collectibles (digital trading cards, artwork, sneakers, sporting moments, ect.).
Doesn’t that seem insane? Don’t worry – you’re not the only one. Let us assist you in making sense of it.
Non-fungible tokens are one-of-a-kind and can’t be replaced with anything else. Let’s say you’ve received a Starry Nights painting by Vincent van Gogh himself. There may be copied versions of it, but you would have the original one. That would be non-fungible. NFTs are created by representing this specific asset on a blockchain using unique crypto tokens. After that, they’re stored on a specific blockchain and used to prove ownership. Furthermore, because NFTs are based on the blockchain, they are secure and unchangeable, prohibiting anyone from tampering with the data.
The lockdown imposed due to COVID19 in 2020 changed that for the better, requiring everything to go digital. People were compelled to adjust to a more computerised way of life as a result of the shutdown.
People were working from homes, students and teachers had to adapt to e-learning, movies began to be released on streaming networks such as Amazon Prime and Netflix, shopping online was the only choice, and artists found ways to portray their creativity through digital art. This is where NFTs stepped in and showed these artists that they can make and sell their art online in a fun way.
Art collectors are compelled to spend their money where they may locate the best artists’ work.
It’s crazy to think that people can sell one digital painting for $5.8 million dollars. Who am I referring to? I’m talking about Grimes, Elon Musk’s girlfriend. One work, depicting a baby guarding Mars, has gotten a lot of attention, selling for nearly $300,000 in less than 10 minutes. The NFT for the “Newborn 2” has already been relisted for $2.5 million. Check out the digital painting here.
You might think it’s ridiculous to spend so much on NFTs, yet the intangibility of items doesn’t stop people. It doesn’t stop gamers from buying new skins on League of Legends or on Fortnite. It doesn’t stop people who listen to music from buying a subscription to Spotify or SoundCloud. I mean, yeah, why pay for a hefty priced NFT when it could be copied and created to a new NFT? But it’s the same for everything. It’s like having fake Louis Vuitton’s or Gucci bags – they’re everywhere. It doesn’t reduce the actual value of the original product though. Besides, since everything is online and on a blockchain, they will have timestamps, and never the same information.
NFTs exist in a unique realm. You, the artist, have complete control over all of the strings that make up your creation. NFT markets are international markets that showcase your work to the entire world. To sell your art, you don’t need to go to a gallery or an agency.
You are not required to share your profits with middlemen. NFT markets keep you updated on the sale of your artwork at all times. You can earn a fair commission every time your artwork’s NFT is traded. You may also establish the authenticity of your work at any moment and that only one individual is the genuine owner of your artwork at any one time.
So, what do you think about NFTs? Thinking about creating your own NFT? Check out our next blog as we’ll be giving you tips on how to create your own!
Amy Chung, Oakville, ON, June 2021