The digital art world is booming, and it’s not just because it’s easier to produce than ever before. A non-fungible token (NFT) is a digital representation of ownership.
That is done through a blockchain protocol, a public transaction ledger. Blockchain technology is the technology that allows for cryptocurrencies such as Bitcoin and Ethereum.
In this case, blockchain technology is again used to show ownership of artworks (or any other asset). NFTs are tokens that represent a unique piece of content. These tokens are typically created on the Ethereum blockchain, which supports non-fungible assets.
A non-fungible asset cannot be interchanged with another item of the same type because each one has distinct characteristics, like the Mona Lisa, compared to your grandma’s doodles on the wall!
How NFT Works
NFTs are non-fungible tokens. Each token is unique and can’t be replaced with another one. So, for example, if you own an NFT of the Mona Lisa, which Leonardo da Vinci painted in 1495, it would be impossible for someone else to use your digital artwork as their own.
NFTs are built on top of blockchain technology and are a form of digital art created with blockchain codes. The first NFT project was CryptoKitties, which launched on Ethereum.
Since then, other artists have created their versions of this type of digital art. Moreover, they started exploring other networks like Solana, Tezos, Polygon, etc.
A non-fungible token (NFT) is a digital representation of ownership
Blockchain technology, if you’re not familiar with it, is the technology that allows for cryptocurrencies such as Bitcoin and Ethereum. In this case, blockchain technology is again used to show ownership of artworks (or any other asset).
NFTs are tokens that represent a unique piece of content. These tokens are typically created on the Ethereum blockchain, the most active protocol. A non-fungible asset cannot be interchanged with another item of the same type because each one has distinct characteristics; like the Mona Lisa.
NFTs are tokens that represent a unique piece of content
NFTs are digital representations of ownership. Therefore, they are not fungible (i.e., interchangeable), and you cannot interchange them with other units of the same type.
As such, NFTs can be traded on a marketplace or used as collateral for a loan. When you purchase an NFT, you’re essentially buying a piece of art from someone else. If it increases in value over time, that’s great! But if it doesn’t increase in value…well…maybe this isn’t for everyone?
NFT Artwork: What Is It?
NFT Artwork is a digital artwork that’s “cryptographically unique.” What does this mean?
Cryptography is the practice of using codes to send messages and secure data. That means that one can record each piece of NFT artwork on the blockchain, but it cannot be reproduced exactly since there’s no way to copy a public key/private key pair (the two types of keys used in cryptography).
And a digital piece’s value comes from its uniqueness! Just like physical art! There’s not another digital piece that looks exactly like yours.
NFT artwork is digital art that’s “cryptographically unique.”
NFTs are digital art that’s cryptographically unique. That means no other piece of digital art in the world looks exactly like it.
As with physical art, there’s a limited supply of NFTs (the number of total units minted). Additionally, they can only be obtained in specific ways or owned by certain people.
Instead of a piece being auctioned off at Christie’s or Sotheby’s, one might sell it on an online marketplace like OpenSea. The “Shrug Life” GIF, as well as two other GIFs entitled “Shrug Off World Problems” and “World Problems Shrugged” were all sold for $150k each through OpenSea’s recent auction series called “World Problems Shrugged.”
We think that NFT artwork could be the future.
It adds a new level of value to digital art, and we can’t wait for its popularity to grow.
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