Why are NFTs shaking up the art world and why will it benefit the industry?

There has been a huge shakeup in the art world which has potentially seen the way that art investment in the future will be changed forever.

Of course, the emergence of NFTs has made headlines within the digital art world in the last few months, which has hit headlines in a huge way.

There are a number of reasons why more and more artists are creating NFT art, as it has started to boom, but it is important to know why it has taken off as large as it has and why there are many different benefits available to artists within the industry who decide to create these pieces.

What is an NFT?

Before taking a look at the advantages and benefits that the rise of NFTs in the art world may bring to artists in the industry and why the whole sector has been impacted in the way that it has, it is important to understand exactly what it is and how it works.

An NFT is a ‘nonfungible token’ that is a digital file that comes with a unique identity and sits on a tamper-resistant blockchain. Many have compared them to cryptocurrency, as they essentially work in the same way.

The artwork that is generally bought with it is also digital, although it can still be used and seen by anybody on the internet, which then brings the element of confusion into play surrounding why pieces are being bought for so much money. It is, though, one-of-a-kind and is not interchangeable, and cannot be traded in multiple copies as they are each unique.

How have NFTs already been used in the art world?

There have already been a number of high-profile sales involving NFTs and digital artwork to have already been recorded, with many pieces having already been sold for millions of dollars in some cases.

For instance, Twitter CEO, Jack Dorsey, sold his first tweet for almost $3 million, whilst digital artist, Mike Winklemann (who others may know as Beeple) managed to sell his ‘Every day's: the First 5000 Days’ college for just a shade under $70 million; thus becoming the fourth-most expensive piece to have ever been sold by a living artist.

Why has this method blown up and why are they attractive?

There are a number of rather simple reasons regarding the use of the currency that has meant everything becomes more attractive for all parties involved, whether it be the purchaser and investor or the artist themselves.

With the introduction of NFTs and crypto art, the physical art that everyone is used to seeing hanging up on a wall now has a correspondent that is available in the digital world, therefore making these collectible, as well.

Digital art can be collected, bought, sold, and resold at a bigger value, thus highlighting a huge change in the way the artwork industry operates.

Indeed, the buyers will still be able to evoke the same emotions and passions that they have for artwork when looking for a new investment to acquire, just in a digital form.

There is still the clamor to be the individual to own the original copy despite numerous copies having been created, further highlighting that there is no huge difference between the physical and digital markets.

Furthermore, this method might be more attractive to buyers as they will be recorded on the blockchains, therefore showing their status as the owner as being public which will allow almost anybody to be able to see that they are the owner of the piece.

This method is incredibly attractive for the artists, as well, as they will be able to benefit from the sales that are made in the same way an artist who creates physical pieces are.

It will also allow them to have the opportunity to sell their works at a higher price than ever before, whilst also being able to get a percentage of the resale value of the virtual currency.

NFTs can help increase authenticity

Due to the fact that NFTs are not replicable or interchangeable, there is an argument that the currency can help to solve some of the biggest problems that the art world regularly finds itself having to deal with.

Indeed, issues such as authenticity and ownership can easily be verified as the use of the blockchain can help make things as transparent as possible.

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