If you are an active user of the Internet, you’ve probably already read about artists selling their artworks as an NFT. Grimes, for example, has sold $6 million worth of digital arts as NFTs. Her video called 'Death of the Old' set to an original song by the Canadian musician sold for £275,000 back in February.
A few days ago, eBay tapped into the trend, now allowing members of its platform to sell digital products and objects as an NFT. With growing popularity in the field, many believe it is set to change the way we buy and sell. However, others may have difficulties grasping the functioning of NFTs, which is why it is crucial to sum up its technical properties before exploring its possible benefits.
What is a Non-Fungible Token?
A Non-Fungible Token, as explained by the BBC, is a currency that holds a unique, non-exchangeable value. Their assets exist merely in the digital realm and cannot be duplicated. In order for a digital work to be sold as an NFT, it has to become part of a bigger network as it inserts itself in a set of support systems that is the blockchain.
Today, Ethereum is the most frequently used blockchain. Blockchains are often coded, thus protecting an NFT from possible hacks, cheats and most importantly, making it impossible to make changes on the original source.
Furthermore, Time Magazine points out that the value of an NFT is set according to the highest bidder. When the original creator uploads the piece on a blockchain, they usually have to pay an initial fee. Once this NFT enters the market, anyone can set a price on it.
Artists tapping into the NFT market
More and more, content creators and artists are slowly moving towards NFT’s to sell their art. This method has seduced big names such as musicians Grimes, the Weeknd, Tory Lanez, Kings of Leon, Jacques Greene or artists such as Ellie Pritts, Sarah Zucker, and many more.
Given you have a wide fan-base and are keen on thinking outside the box, you may well perceive a good price by selling your NFT. Indeed, Quartz explains that 'profitable crypto artists spend time developing their fan base and educating themselves in sometimes quixotic cryptocurrency and blockchain protocols,' meaning that you don’t necessarily need to make 'good' art but rather know how to market yourself to be successful.