What are NFTs, and what do they have to do with art?
Updated: Jul 7, 2022
You don't have to spend a significant time of your day on the Internet to stumble upon the phenomenon of NFTs. With Blockchain technologies and cryptocurrencies being the buzz of the web for some time now, every related topic immediately turns into a potential revolutionary game-changer. In this article, we dive into the ins and outs of the NFT buzz and the way it's currently changing the way we approach ownership in digital spheres.
What are NFTs?
NFT stands for "non-fungible token" and refers to the fact that it can't be substituted with anything else. A bitcoin, for example, is fungible. This means that you can exchange it for another bitcoin and get the exact same item with the same value. However, that extremely rare Van Gogh painting you may have laying around in your attic somewhere right now is non-fungible. You can't possibly switch it with another one with exactly the same attributes and value. This intrinsically means that that painting is of much higher value than art pieces you can buy in bulk.
NFTs work the same, but instead of a real-life painting you can hang on your wall and brag about to your friends at a dinner party, NFTs exist in a digital form, referred to as "tokens", When you buy an NFT, you don't necessarily buy the digital asset, but you buy a certified agreement that confirms that you are the owner of that asset. This agreement is recorded on the Blockchain, and therefore impossible to be meddled with. An NFT can be any kind of digital asset: from a tweet or meme to a digital painting or a collectible you can use in a video game. Especially in the art world, the use of NFTs is currently skyrocketing as it proves to be a great way to generate income as an artist. It can be incredibly difficult for artists to generate an audience that's interested in buying their artwork. Selling your artworks as NFTs includes an entirely new customer base to your existing buyers.
How do I buy an NFT?
The majority of NFTs that are currently up for sale online are bought with the Ethereum cryptocurrency. So, when you want to invest in an NFT, you'll first have to create your own crypto wallet and purchase Ethereum (ETH) on a crypto exchange platform, such as Coinbase or Crypto.com. The dollar price of 1 ETH varies by the day and is expected to jump to a staggering $6,500 by the end of this year. This means that you can buy 1 whole ETH for a few grand. For many of us, that's a very major and unfeasible investment. Luckily, you don't have to buy an entire ETH in order to play along. You can also invest in only a part of one ETH, which is enough for investing in NFTs.
Once you got your crypto wallet filled with at least some amount of ETH, you'll have to connect your wallet to an NFT marketplace, such as opensea.io and rarible.com. Now you can start exploring the NFT marketplace, packed with massive collections of high-end and unique PFPs (Profile Pictures) like Bored Apes, but also original artworks by painters, who digitized their collection.
Why would I want to buy an NFT?
Now, this is a question that still burdens the minds of many people who are reluctant to jump on the NFT train. And fair enough, because what else than ownership over a digital asset do you gain from investing in an NFT? Why are some people prepared to pay millions of dollars on an item that other people can just download, screenshot, and use without facing copyright claims? After all, you don't obtain copyrights of the digital asset, only ownership.
Digital assets can be copied as many times as you want, including the artwork that comes with an NFT. So why would you pay for it then? Well, NFTs are intended to provide you with something unique: ownership. Think of it as that Van Gogh painting in your attic: anyone can buy a print of it, which looks the exact same as yours, but you, and only you, own the original one, hand-painted by one of the most renowned painters in history.
For many people, NFTs follow that same principle. Even though the original maker of the artwork still possesses the copyright, you own the art piece. You can keep it with you on your phone at all times and show it to fellow art lovers, and you can wait until its value goes up and sell it for more than you bought it for. Long story short, people buy NFTs for two main reasons: the value of ownership and investment in something that might rise in value.
How can we help?
We get it. The world of crypto and NFTs is not something you'll understand overnight. That's why Grypto is here to teach you more about the hype and use of these new technologies. Besides functioning as an educational platform, we help artists with the process of digitizing and marketing their artworks on NFT marketplaces. Together with the artist, we create, grow and manage an online community to raise awareness and with that the value of their art.
Are you interested in teaming up with Grypto to turn your artworks into valuable and future-proof digital assets/NFTs? Get in touch with us via the contact form on our site, or send us a message on our social channels.