A non-fungible token (NFT) of digital kitten art sold for 170,000 US dollars. These tokens could change how we buy, sell and own digital media. What are they, and could they build a new creative economy? To start, check out the video above from CNBC!
Is this the art of true ownership in the digital age?
Most of us can make a GIF, take a picture or record a clip, but what if you could sell those and other digital media for hundreds of thousands of dollars? With the rise of non-fungible tokens (NFTs), pictures, short clips of comedians, GIFs and every other form of digital art is now being tokenized and sold just like a physical painting.
What is an NFT?
Non-fungible tokens (NFTs) are a digital certificate of ownership of a piece of digital information that can be bought and sold. It works the same way as cryptocurrency: Secure transactions made between two parties recorded permanently through blockchain. The difference is, with bitcoin – a popular cryptocurrency using blockchain – you can trade one coin for the other and it has the same value, but NFTs are one-of-a-kind. Each NFT is unique and can have a different value.
You can make NFTs of almost anything digital, but the big news is they're starting to be used to buy and sell digital art, known as cryptoart.
Why NFTs can benefit digital artists and art buyers
Uniqueness has always been central to the art market. Digital art is hard to sell, and for buyers, hard to 'own' because of the potential for an infinite number of copies. NFTs could solve that problem.
For creators, NFTs are super trendy and therefore add to your enigmatic status, and they have a handy sell-on feature. If you sell a GIF using NFTs, you get a percentage every time the NFT is sold to a new buyer. Imagine Van Gogh selling a painting, then getting a slice of every resale, forever.
And if you're a buyer, you have a concrete claim of owning a piece of digital art. And speaking of buying, you might want to see this.
A world gone mad for NFTs
The best way to understand the NFT market explosion is to see some pieces that have fetched crazy sums. Brace yourself.
This Nyan Cat GIF sold for almost $600,000 US dollars.
Grimes - The NFT goldrush continues
This 50-second video by Grimes sold for almost $390,000.
Watch the video here.
Beeple - Authenticated by blockchain
This video by Beeple sold for $6.6 million.
Watch the video here.
Crypto financial and environmental impacts
Many financial experts have warned that this could be an investment bubble that, if it bursts, could mean big losses.
And while NFTs are making the digital art world fairer, they come with a warning. The sale of a crypto art piece can use the same amount of energy in one transaction as an art studio uses in two years.
How artists can benefit
If you're an aspiring or established artist or content creator, no promises, but this could be big for you. First, prepare your work ready, whether it's a GIF, picture or video. Then, when you're happy with it, start on NIfty Gateway. On Nifty Gateway, you can apply to create a project for them to sell.