The past decade witnessed an unprecedented change in how people across the globe approach money and finances. When blockchain technology, the holy grail for record-keeping systems, came in 10 years ago, it paved the way for cryptocurrency.
This decentralized digital money and payments system based on blockchain technology slowly became the dining room conversation for everyone with an expendable income. Non-fungible tokens (NFTs) which are minted versions of assets that can be traded on the blockchain have also garnered similar attention. This interest in alternative investments is on a continuous rise, giving India’s favorite investment – Gold – quite literally, a run for its money.
How NFT Digital Art Is Becoming the Archetype
Another change that has widely taken over and changed the way we do things is the adoption of the digital world. From how we work, eat, to how we make art – the internet has revolutionized everything.
Undoubtedly, the origins of man’s experiments with art can be found in cave paintings and, from there on, humanity has only progressed in the way it creates and receives art. This (typically) visual form of expression latched on to the trend, hopping on the bandwagon of the digital revolution. The artist has constantly evolved from who used to be the cave dweller, to becoming the Da Vinci, to the recent Hussain and eventually present day’s digital artist – immensely empowered with tools and capabilities.
Digital art is widely popular due to its interactive capabilities. The more artists venture into the virtual, the higher its value is realized. It is effectively the cheapest and quickest way to exhibit one’s creations. What’s more, one of the many reasons that digital as a medium is garnering the trust of the community is because it helps canvassing unprecedented and, often unknown, audiences. The accessibility of the art world thus stands forever increased.
The downside of this is that far too often, artwork – whether audio or visual, gets stolen on the web. After investing long hours and creative sparks on what could be one’s version of ‘Mona Lisa’, artists are robbed of the credits.
How NFTs Offer a Solution
Even though copyrights exist for the same reason, the biggest challenge they pose is information overload. Due to multiple points of entry at multiple locations, it is impossible to keep track of everything. Non-fungible tokens record the proof of the artwork’s uniqueness on the blockchain, making them immutable and thus of monetary value.
– Ownership, Credits, and Credibility
Backed by the blockchain-based certificate, NFTs represents an entitlement to its owner. A work of art created digitally can be copied innumerable times to produce an exact copy. NFTs categorically give creators something that cannot be copied – ownership of the work. Anyone can have a ‘Starry Night’ second copy, but only one person owns it. It is this ability to preserve credits which have resulted in the rush to tokenize non-fungibles.
– Profits and Revenues
To add a cherry on top, NFTs are also designed to enable royalties so that the creator gets a percentage of their creation – whether it is a GIF, audio, or an image, blows up and goes viral on the internet, increasing its value in the future. Given our experience in this new domain, we realized that Individual NFT artworks are among the most popular and valuable non–fungible tokens ever created with respect to profitability. In my opinion, NFTs are a boon to the aging art market.
– Platform Security
The NFTs are technology in its infancy. As NFTs become more popularized and popular among the masses, the charter and policy framework will become strengthened both nationally and globally. Creating positive regulatory framework and infrastructure will enable the growth of NFT marketplaces in India. The presence of finely chalked out dynamic policies and governance protocols around the technology would boost the early adopters. Also, as NFTs reach popularity, it has caught the attention of fraudsters who are posting fake artwork and even hackers. This is the reason where selecting the optimum and secure marketplace gives us an advantage.
– On the brink of a Revolution
As a species, we are skeptical of change. The inertia of inhibition is bound to step in and perhaps dismiss NFTs as another art fad. But if history is to be believed, the dot com was dismissed as an ephemeral trend too, and yet we find ourselves reading this on the internet.
Blockchain technology has brought into the picture a way for artists to convert their work into a secure, sellable asset. Furthermore, NFTs are making possible the existence of business models that could not survive before – completely changing the rules of ownership.
Many factions of this new, decentralized economy are yet to be imagined. What can be said with utmost assurance is that this novel transparent way to trade & sell is an entry point for everyone. So whether you are the next Van Gogh, an ardent aesthete, or somebody that thinks they have something unique to monetize, hop on the trend because NFTs are here to stay.