NFTs enable artists to sell unique digital artworks with proven ownership. Learn how blockchain-stored tokens create scarcity and value for digital creations.
NFTs (Non-Fungible Tokens) open up exciting new possibilities for artists to sell and distribute their digital art. But what exactly are NFTs and how do they work?
NFTs are digital assets stored on a blockchain. Each NFT is unique and non-interchangeable. Ownership of an NFT is cryptographically secured, so it can be proven who owns a digital artwork.
There are two common NFT standards: ERC-721 for unique tokens and ERC-1155 for fungible tokens that can exist in editions. For digital art, ERC-721 NFTs are typically used since they are one-of-a-kind.
NFTs allow artists to create artificial scarcity for their digital works. Although digital files can be copied infinitely, there is only one original as an NFT whose authenticity and ownership is publicly verifiable. This gives digital art value.
On special NFT marketplaces like OpenSea or Rarible, artists can list and sell their digital artworks as NFTs. Payment is made directly by the buyer in cryptocurrencies like Ether. The blockchain serves as an immutable record to prove ownership. No gallery is required as an intermediary.
This offers many benefits for artists:
Direct sales to collectors worldwide, without a gallery as middleman. The artist keeps the largest share of the sales price.
Transparent pricing and easy global distribution of artworks. NFTs know no geographical boundaries.
Straightforward management of rights and licensing fees via smart contracts. The artist automatically receives their licensing fee on any resale if encoded in the smart contract.
New creative possibilities by integrating art in the metaverse and as digital collectibles in games. NFTs are multifunctional.
Reaching new buyer demographics through the crypto community, which is enthusiastic about digital artworks as NFTs.
NFTs can also be interesting for traditional galleries. They allow easy entry into trading digital art. Tokenization enables galleries to offer digital artworks to their collectors while ensuring authenticity and ownership.
The underlying blockchain technology is based on "smart contracts". These are small computer programs that run automatically on the blockchain. For example, licensing fees on resales can be paid automatically to the artist.
As an NFT consultant, we help artists mint their digital works as NFTs and market them successfully. From concept to launch of the NFT collection, we offer comprehensive service.
Even if NFTs still seem new and abstract to some, they open up fascinating possibilities for artists to distribute and monetize their digital art. They are the ideal complement to the traditional art trade.
ERC stands for "Ethereum Request for Comments". These are technical standards on the Ethereum blockchain.
ERC-721 defines the standard for unique, non-fungible tokens - a one-of-a-kind item like a DaVinci artwork such as the Mona Lisa.
ERC-1155 is the standard for fungible, interchangeable tokens, so-called editions. An example would be 10 basketball cards with the same image and specifications on each card.
