NFT
INFORMATION
An NFT, short for Non-Fungible Token, refers to a unique digital identification certificate that exists on a blockchain. Its purpose is to verify the authenticity and ownership of assets. An NFT can represent a digital item or signify ownership of a physical object. Unlike fungible assets, such as currency, where units are interchangeable, only one person can own a specific NFT at any given time. Transactions involving NFTs occur on a secure blockchain, ensuring that the ownership record cannot be duplicated or stolen.
NFTs play a significant role in the development of Web3, which envisions a decentralized internet operating on a blockchain. In this decentralized model, individuals have secure control over their content and assets, as opposed to centralized control by corporations.
How does an NFT work?
​
Think of an NFT as a renowned painting. Over the years, it may change hands through various sales, but there exists only one physical painting. It is a tangible item with a unique identity.
In simpler terms, an NFT is non-fungible, meaning it is not replaceable. Unlike fungible assets like cash, which can be easily exchanged with identical units, a non-fungible asset cannot be accurately replaced with another identical item.
For instance, cash is fungible as a $20 bill can be traded for another $20 bill without any functional difference. However, a painting is non-fungible.
Why NFT Art?
The art world is currently experiencing a technological revolution, wherein digital art is gaining immense popularity and traditional artworks are being converted into digital assets through a process known as tokenization. In our previous blog posts, we delved into the influence of the digital age on the art industry and the rise of phygital NFTs, which involve physical artworks stored as digital assets on the blockchain. Tokenization enables the conversion of physical or digital assets into digital tokens, which can then be traded on blockchain-based platforms. This process offers numerous advantages for artists, such as accessing a broader audience, exploring new and innovative avenues for monetizing their artwork, and establishing ownership of their creations in the digital realm
Benefits of NFT Art
​
NFT art offers artists a new way to sell and share their work. By turning art into digital tokens, they can sell small shares, making it easier to find buyers and increase sales. Blockchain ensures each piece is secure, authentic, and traceable.
Artists can sell directly to buyers worldwide, without needing galleries or auction houses. They also earn royalties each time their work is resold, creating ongoing income.
NFTs open doors for emerging artists, making the art world more accessible and fair. Beneficial for artists and collectors alike.