Non-Fungible Tokens (NFTs) are an emerging asset class in the blockchain space, and it’s safe to say that it’s dominating the conversation.
NFTs derive their value from a unique smart contracts governed by blockchain technology, which means they can take a variety of forms, including digital artwork and in-game items.
These non-fungible tokens are used to establish ownership — each token being unique with its own set of attributes. The blockchain works by providing an immutable ledger where all ownership records are stored securely and can be verified publicly at any time.
Table of Contents
NFTs are an incredibly lucrative and accessible way for digital artists to share their art with a new audience.
Digital celebrities can now reach out directly to fans through this format, as well as sell some of their prized possessions like never before.
The rise of digital art is a thrilling development for both artists and collectors. Crypto-investors are eager to purchase high quality graphics from their favorite creators, while celebrities have recognized the potential in NFTs as an opportunity to expand their fan base.
Yet this revolution has not been confined solely to individuals or celebs; companies like Ubisoft and Epic Games are taking advantage of these groundbreaking technologies by integrating them into gameplay on popular video game titles.
Popular NFT exchanges and marketplaces
OpenSea is a digital marketplace for blockchain-based items, with the option to mint your own tokenized assets. Creators can use OpenSea’s item creator tool and make their own collection of NFTs without having any technical knowledge or expertise.
You can mint NFTs without any coding, which is perfect for tailoring your own smart contract with unique digital assets.
Rarible helps artists and creators sell their creations. The platform is set up in a way that empowers both the seller and buyer to make transactions of value, with Rari tokens as rewards for active users on the marketplace who buy or trade NFTs.
The platform places a particular focus on art NFT assets. Creators can use Rarible to “mint” new NFTs to sell their creations, whether they be books, music albums, digital art or movies. The creator can even show a sneak peek of their creation with just enough detail for the purchaser without giving away all the details.
SuperRare is a marketplace specializing in one-of-a kind digital artworks. Each artwork has been created by an artist in the network, with each piece being tokenized as its own crypto collectible that you can buy or sell to other members.
With SuperRare’s social network built on top it becomes easier to connect with the people who are collecting what you love most!
Whether your collection includes Van Gogh paintings or Pokémon cards, each artwork has a transparent record of ownership — making them perfect for trading within an online community.
Foundation is a new platform that aims to create an entirely different creative economy. The company, founded in 2020 by the crypto natives and collectors of today’s digital art scene, addresses how artists use technology to expand their creativity and make strides into this “new” world. Foundation’s first blog post was published on August 1st where they announced an open call for creators who are willing experiment with cryptocurrency or play around with concepts of value through artistic expression.
When an NFT trades on Foundation, the artist makes 10% of that secondary transaction — and each time a collector re-sells their work, the original maker of said art receives another 10%.
Myth Market is a digital marketplace for NFT trading cards. At the moment, their featured markets are GPK.Market (Garbage Pail Kids), GoPepe.Market (GoPepe memorabilia), Heroes.market (Hero Trading Cards), KOGS.Market (for KOGS trading cards) and Shatner’s Shop (William Shatner memorabilia).
Portion is an online marketplace connecting artists and collectors through Blockchain technology to easily sell, invest and own art with complete transparency. Portion provides a global network of decentralized artists by allowing them to share their work without censorship in the Artist Community.
Portion Tokens are ERC-20 assets on the Ethereum Blockchain used in governing and voting for future changes to the platform. New tokens are released when demand is high, such as partnerships or grants with artists who create new NFTs (non-fungible token). Portion distributes coins worth 500 PRT each time an artist creates a new NFT on their platform.
Async is an art movement built on the blockchain. You can create, collect, and trade programmable masterpieces or “layers” (layers are stacked together to form a complete work).
Each layer is endowed with different powers that artists decide when creating them — artists have the power to decide how their art will be viewed and can grant exclusive control over any aspect of it.
Historic Auction Houses
Sothebys is making big strides in the ever evolving world of NFT. A three-day sale in April saw Sotheby’s selling works by digital artist Pak, which were novelties for both them and for their clients who had never experienced anything like it before.
Earlier in the year, Christie’s announced that it would offer its first purely digital blockchain artwork. The collage of Beeple’s 5,000 “Everydays” — a result from drawing everyday since 2007 — was sold for $69 million.
As artists and buyers around the world continue to embrace the offerings of blockchain technology, it’s easy to forget that the creative process of an artist is traditionally guided by paper, sketchbooks, and other physical representations.
Combining the power of blockchain technology with the contemporary experience and understanding of art, we are able to transform physical assets into digital format to create new meaning.
The use of this technology enables new dialogue between artists and collectors, as NFT marketplaces provide insights into the latest developments in the arts and demonstrate how digital technology can be used to create new and innovative experiences.
Mad Dog Jones, is a Canadian artist known for his bold and often graphic work that explores the intersection of art with other cultures. His newest work, titled Replicator, will generate new artworks on the blockchain each with their own set number of NFTs until there are seven generations – amounting to 75-300 works generated in the space of a year.
The Future of NFTs
With the gradual increase in new blockchain use cases, we’re seeing a growing trend towards using tokens to represent physical assets.
NFTs can be used as representations of anything from artwork and collectibles to pieces of real estate in order to simplify management and ensure authenticity.
With these types of digitized transactions happening regularly, there is no doubt that tokenization is here to stay and will only increase.