If you're on the internet, you've heard of NFTs.I'm going to break down what the hell an NFT is, for someone that needs it (aka me a few months ago).
NFT stands for a Non Fungible Token. NFTs are a special type of crypto because every NFT is unique. In other words, there can’t and will never be two of the same NFT. For clarity, something that is fungible would be, say… a dollar bill. You can trade one dollar bill for another and they’re the same and hold equal value.
An NFT is a token of authentication. Once an NFT is on the blockchain, where NFT currencies live, they are uniquely coded so that each one can’t ever be replicated.
The reason why NFTs are so important for artists is their ability to give artists a substantial income as well as artist royalties. A royalty means that when an artist sells their work to someone and that person then re-sells their work, the original artist will get a percentage of the proceeds from that resale. This is important because currently in the art market, artists' works are being sold to collectors, then those collectors take that work to auctions and have it re-sold for thousands more than what they originally bought it for, without the artist earning any of the resale profits. So now artists are selling their physical art with a purchase of the NFT of the art.
When I make NFTs out of my art I take a high quality picture of my work and post it to a platform like Opensea. This way I’ll get a fraction of the proceeds when it’s resold. My NFTs also come with some utility like discount codes to prints and exclusive access to events and exhibitions!
NFTs have begun to provide artists with a substantial income and therefore are making it more common for artists to actually live off of their work.
This gets me so fucking excited.
Art is often restricted to the wealthier corners of the world, but with NFTs I foresee a wave of changes in the industry taking place and we are just at the start of it!