An intro to NFTs
What is an NFT ? To really understand NFTs’, making the necessary connection NFTs’ have to cryptocurrency is needed. You need a basic knowledge of cryptocurrency down to the definition. If you are already on that train, you can skip to the next paragraph. If not, the Merriam-Webster definition stands as:
“any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions”
NFT is an acronym for Non-Fungible Token. Non-Fungible means there is no other one like it and can’t be replaced. Just like you! However, these tokens, like cryptocurrency, are digital and can be a multitude of different digital items. Sometimes even going as far as being turned into physical objects but always taking form as a digital rendering first. An image file, a song, a tweet, a video, a digital of your painting or of your dog can all be NFTs’ Sounds silly to most but this can be the most lucrative movement of generational artists and wealth ever. A Renaissance of sorts in Art.
An example of a very popular and early NTF is the Nyan Cat meme, which sold on February 19 2011 for $590,000. You can still use that meme but someone now OWNS it as a digital asset and has the rights to that NFT as said digital rendering. Most NFTs are part of the Ethereum blockchain (Blockchain being a more complex word for Public Ledger). Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also supports these NFTs as “smart contracts”. The owner of an NFT owns the underlying right to that “block” (transaction) in the blockchain and can't ever be replicated or replaced. With a 10% perpetuity FOREVER as a bonus to the original creator and every seller after.
In the world of blue verification marks, bragging rights and status symbols, don’t be surprised at how people will jump on the chance of owning a one of a kind item. This is the natural progression from baseball and pokemon card trading and the underlying value they can carry through their rarity and the passion of their owners .
If you can remember back when the Internet first became a “thing“ a lot of people didn’t believe in it. It bred new forms of communication and connection. When social media first came around a lot of people laughed at it…it bred new forms of communication and connection. If we have learned anything in this fast progressing digital world, it is that digital breeds new forms of communication and connection and NFTs’, as the future of digital assets, will breed a new form of communication and connection. It’s best to understand it and, if you’re lucky enough, be ahead of the curve.
If this small intro to NFTs has piqued your interest and/or educated you, keep an eye out for this blog as we will be diving deeper, taking note of, learning and sharing all in helping your art career blossom in new places.
I also encourage you to seek out other well researched, and experienced influencers on the topic. Gary Vee is someone who has a head on his shoulders about NFTs’ and takes time to research and be involved in something before he speaks on it. This is a great interview he had on NTFs for Beginners: https://www.youtube.com/watch?v=4se4_ZqkcKw&t=225s
If you are more visual, as some artists can be, this video is helpful in understanding just how NFTs work with Crypto: https://www.youtube.com/watch?v=Oz9zw7-_vhM
Stay curious, creative and open minded!