Blockchain and art
Blockchain has completely changed the way we look at money and created a true era of digital ownership. Bitcoin is the first successful use case of blockchain. As a store of value and a digital representation of currency, some creative developers think they can extend the concept of Bitcoin into new things.
The introduction of smart contracts has brought many new applications to the blockchain, one of which is non-fungible tokens (NFT). Non-homogeneous tokens are unique, just like unique artworks. NFTs are digital assets with unique and irreplaceable attributes. They have standardization, versatility, liquidity, and programmable features. Common application scenarios include collectibles, game items, digital art, certificates, domain names, etc.
Digital artwork has been transformed into encrypted artwork due to NFT. The original copy of the gallery on U disk and CD-ROM is also transferred to the chain. When the transaction process becomes open and transparent, technological innovations such as AI have also begun to add digital artwork. Create the world. Changes in trading and creation are transforming the art market and also disrupting the world of crypto assets. The application of NFT enters the art world. Artists tokenize and monetize their works in a unique way. It is only a matter of time.
What is encryption art?
Encryption art is a rare digital art. More to say, it is a limited edition collection art that is registered on the blockchain through tokens. Tokens mean that the source and provenance of digital artworks are transparent and verifiable; while blockchain technology enables tokens to be held by people and can be safely traded from one collector to another.
Once the token is created, the artwork starts the journey of life on a specific blockchain. Fans or collectors can purchase the artwork through the token, and can be exchanged, traded or held by the collector like other rare artworks. Have. Generally speaking, artworks can be sold through auctions: the creator puts on the shelves the artworks he wants to sell, and then bidders bid, the creator chooses to accept or not to accept the bid, and finally the transaction is sold. After the digital art asset is sold, the tokens will also be directly transferred to the buyer's wallet, and the corresponding cryptocurrency will be transferred to the seller's wallet. With the help of blockchain, every transaction is carried out on a peer-to-peer network and is protected by cryptography. This means that neither funds nor assets will be held by the gallery or any other third party.
What does NFT mean to artists?
In view of the decentralization and transparency of the blockchain, this feature of it will automatically be reflected in the tokens stored on the platform. These features are applied to art in the following ways.
First, ownership is digitized into tradable tokens, thereby increasing the liquidity of artworks. Artists cast their own works on the chain and distribute them. If they want to sell a certain work, they can set a price based on its value, and leave the rest to the market for operation.
Secondly, artwork NFT can also be used as a reliable verification and authentication method. Because of its traceability, it becomes easier to track the certification and owner of a product, and people no longer need an authentication certificate. Everything is done on the chain, and the integrity and value of the work is maintained.
Finally, it lowers the barriers to entry for independent artists, who can use this medium to list and promote their artworks without having to pay expensive galleries for services. This also helps artists to retain all ownership of their works, and at the same time avoids paying fees to third-party intermediaries or agencies, reduces cost losses, and can obtain better returns in art transactions.
How to tokenize your own artwork?
There have been several projects in the field of encrypted artworks. These platforms can help artists complete all the technical work. Artists only need to provide encrypted artworks. The following will introduce some of the more popular encrypted art collection and trading platforms.
NFT Showroom is an art tokenized platform built on the HIVE blockchain. NFT Showroom allows artists to log in with HIVE accounts and use its sidechain and smart contracts to tokenize artworks. The biggest advantage of the HIVE blockchain is that it provides free transactions, so when the artist submits the created artwork to the chain, there is no cost. In addition, people who purchase through HIVE also need an HIVE account. Users of HIVE accounts need to bet a small amount of HIVE coins to pay for transactions on the chain. These HIVE coins are still kept by the user and can be sold at any time.
Rarible is built on the Ethereum blockchain, allowing anyone with an Ethereum wallet to create an account to tokenize their art. Since Rarible runs on Ethereum, users need to deposit Ether in their account to pay for on-chain transactions. What's interesting about Rarible is that it allows users to buy art with Ether, but also with hundreds of ERC-20-based tokens. Compared with the NFT Showroom on the HIVE chain, users can open artworks to more buyers to obtain better liquidity and a larger user base.
Makersplace also uses Ethereum to manage the tokenization of artworks, but it also accepts other cryptocurrencies and fiat currencies for purchase. Makersplace only charges 15% when crypto artists sell their works, and if they are purchased through a credit card, they will charge an additional 2.9%. In addition, whenever an artist's work is sold again, the artist can also earn a 10% royalty.
Nifty Gateway is owned by the cryptocurrency exchange Gemini. Users can log in and use the NFT token standard Nifties to create a tokenized version of the artwork. The platform uses the Ethereum blockchain and was created in 2018. The artwork "THE COMPLETE MF COLLECTION" by encryption artist beeple was auctioned on Nifty Gateway for $777,777, becoming the most expensive encrypted artwork to date.
Conclusion
As Jason Bailey said when introducing the first Italian crypto art exhibition (Tolmezzo, December 2018 to February 2019): " Unlike the traditional art world, crypto artists do not need to seek galleries, agents, auction houses or other intermediaries. To share and sell their works. Instead, they use the blockchain and decide to display the work and make it available. Naturally, traditional practitioners often talk about crypto art ironically, but if history can be measured, this is undoubtedly crypto An important signal that the artist is on the right path."
Thanks for sharing, NFTs have been a hot topic lately with the big sales that have gone down. It’s an interesting topic I’m trying to follow along with and learn more about.