NFTs continue to gain ground in the art and design world — but they’re more than just a fad for those with money or art enthusiasts. They are tools every digital artist can utilize in immortalizing their work to ensure it is always identified.
In our ever-evolving digital world, you can buy NFTs just as you buy Dogecoin and other cryptocurrencies. As a designer who is just starting or has made it to the mainstream art world, NFT is a new technology that can make you globally recognized. However, the journey of benefiting from NFTs starts with understanding what they are.
Simplifying NFT for a Beginner – What are NFT Designs?
NFT is the short-term for Non-Fungible Tokens, and since its introduction, many individuals have been learning how to buy NFT. They are a means to prove digital ownership of any digital item online. It doesn’t have to be art; it can be digital designs, pictures, videos, books, anything. If you follow NFT art closely, you will discover that several things fall into that category.
Like cryptocurrencies, they are built on distributed public ledgers that record transactions, otherwise known as a blockchain. Every NFT is recorded on the Blockchain with metadata and an identification code that gives it a unique fingerprint. Metadata refers to the extra information that describes the NFT and is always stored alongside it.
However, cryptocurrencies and regular currency are fungible, which means a Bitcoin is always worth the same as any other Bitcoin. These digital currencies have uniformity of value which is different from volatility. While volatility explains that the prices change from time to time, uniformity explains that the price of Bitcoin at a particular time in the United States will be the same as its price everywhere else.
In contrast, NFTs have unique valuations set by the highest bidder, just like a Picasso. So, you can have two designs that appear similar being valued at different prices.
Artists and designers who want to sell their work as NFT have to sign up with the NFT marketplace, mint their designs, and upload their information on a Blockchain. These designs or artworks can then be sold on online platforms like eBay and Amazon.
Why Do NFT Arts Have So Much Value?
The sudden rise in value of NFT stocks wasn’t one that you may have expected. Undoubtedly, artworks are very valuable, but they’ve become even more valuable as NFT arts. The budding question on the minds of many is why do these NFT arts have so much value?
It is the same reason people stand in line for hours to get the limited edition of their favorite games or action figures. Or when people hope that their pokemon card pack will contain a rare and unique card. People value art, and when they don’t have to travel miles to get what they want, that’s a lot.
NFTs have value because they are unique, limited, and collectible. Aside from these three elements, there’s also a “who’s collecting what” importance tied to this.
Similar to the art and design world, the status of a buyer can have a large influence on initial and future sales. For example, if an artist has their work bought and added to a famous collector’s gallery, everyone will want to have more of such artist’s art.
Hence, when a celebrity or popular investor purchases specific NFT, their value gradually rises. The economic significance attached to NFT design is a combination of scarcity, status, and pleasure.
Influence of NFTs in the Design World
NFTs are a way for designers to mark digital assets and control their supply. Whether you’ve created a design, artwork, video, or music, minting it as an NFT means that you can prove ownership over it, as each NFT is unique and traceable via the Blockchain.
Previously, digital assets were easy to steal, including designs and pictures. The introduction of NFTs means designers and artists can’t be cheated out of royalties for their work anymore. Also, collectors don’t need to worry about falsehood or design forgery, and every piece of work can be authenticated on the Blockchain.
NFTs can also help designers control their supply of digital content, which is vital in driving up prices. They function as digital receipts or signatures for buyers and collectors.
At first glance, the whole NFT craze seems absurd. Big-money collectors worldwide pay five to seven figures for works that can often be seen online for free. Critics have dismissed the NFT art boom as just the latest bubble, akin to any regular boom-and-bust mania around new investments like meme stocks, pyramid schemes, etc.
However, the phenomenon keeps attracting a wide category of not just designers, artists, and collectors but also speculators looking to get rich off the latest digital investment.