Is Physical Art Getting Obsolete? Understanding NFT Digital Art?
If you have taken a breath-taking picture of the sunrise, losing your sleep, and trekking 500 feet uphill, being an owner and creator of such a beautiful picture, pass it on to your generations? Be the Leonarda Da Vinci and be the proud owner of your Mona Lisa?
Is it possible?
Thanks to the world of NFTs or Non-Fungible Tokens, you as a CREATOR would be known for what you create and can also earn a passive income if you put it for sale.
What is an NFT?
NFTs are tokens that assist in identifying the owner of the art/asset/file. So, if you bought a home, the title would define its Ownership. Here for the sunrise picture, you captured, if you plan to transform it into NFT, the title of the sunrise picture would be on your name. And this title is what makes you the OWNER/CREATOR.
So, defining Non-Fungible Tokens or NFTs is a token that is attached to any digital asset/digital art/digital file
· That cannot be exchanged/traded one for another.
· Whose Ownership cannot be forged
· Can be bought/sold between people
With the Sunrise picture, you captured
· can now be transformed into an NFT [ via some of the NFT marketplaces available]
· Stored on a blockchain
· Make it available for sell
Let’s pick another example, you love music, and as a hobby, you often create music. Using instruments, you record it and put it on YouTube/podcast. People listen to it globally; some bad actors copy that tune and use it under their name. You are sitting in one part of the world and would never know about it. Isn’t?
But if you convert it into an NFT, you would be the owner of that music piece, and even if someone tries to make a copy of it, you will know it, and people can identify the fake vs. original.
With this example, the question is answered that Physical art will never be obsolete, but it helps the creator own it and earn from it.
Pros of NFT Digital Art
· NFTs are accessible across the globe
· NFTs are secured by blockchain. Hence no one can forge them.
· Can Earn a passive income as Creators. For example, Captain Kirk from Star Trek invested in crypto art in 2020 by issuing ~90k digital trading cards of himself. Initially, they were sold for 1$ each, and he has been earning a passive income
Cons of NFT Digital Art
· Not all NFTs are sold at a reasonable price.
· One needs to be part of the crypto world to sell/buy NFTs.
· Legal implications are not defined yet.
NFT or Physical Painting — Which is the better investment?
Let me pick an analogy here.
You have 100 INR — would you put them into the stock market, or is a Bank FD the better option?
Now you have 10,00,00,00 INR, what would you do? Would you try to put it in multiple baskets?
Isn’t?
So, many investors are now choosing NFTs as an investment option to diversify their portfolios. And many are not keen to put their money into cryptos or NFTs because of the uncertainty and volatility attached to them.
However, for many artists, it’s a boon to their branding and owning their masterpiece. NFTs are unique, like physical pieces of art are amazing. They have a specific history and are tied to a particular owner.
· They can be used in digital collectibles, games, and creative projects.
· They can also be used to represent Ownership in companies and real-world items.
· NFTs can even be used as a way to represent digital identities.
That makes them a particularly attractive investment opportunity.
But, it has a downside, and people are working to resolve them. You can read my article to know more here.
The main goal of this article is to help you understand how digital artworks and where it fits into the world of cryptocurrencies.
Physical art is not going anywhere and is here to stay. The technology would surely help the creator to own and monetize it.
Though if you plan to put your hard-earned money into it, I would advise caution. As the market is very volatile, people have faced a huge loss.
These short question answers/articles posts are related to future trends [specifically Web3, Blockchain, NFT, DAO, Dapps] and Digital Transformation. If you have any specific questions, feel free to put them in the comments and I will try to respond :-) Thanks for Reading :-)
Originally published at https://www.linkedin.com.
