In March 2021, NTF Art sold a piece of digital Art for "about 65 million dollars" on an overseas auction site.
This digital Art is said to be "NFT Art" using virtual currency technology, and this news has led many people to see the term "NFT Art."
NFT Art adds a lot of functionality to digital Art by utilizing virtual currency blockchain technology.
It is also a beautiful investment area, and many investors and artists are trading in it for speculative purposes.
Features and mechanism of NFT Art
- It can prove uniqueness
- It cannot be tampered with
- Various information can be recorded
- How to make NFT Art
- How to sell NFT Art
An example of NFT Art bought and sold at a high price
- Digital art collage wins auction for about 65 million dollars
- Virtual sneakers
- Dogecoin
- Environment issues
- The fee is charged at the time of contracting
- Legal development is not catching up
- Expanding the market for trading NFT Art
- Increasing usage of NFT
- Everything could be an NFT
- Is there an initial cost to create and trade NFT Art?
What is NFT Art?
NFT is an abbreviation of "Non-Fungible Token, "It is a mechanism that cannot be tampered with by utilizing blockchain technology for data management.
The market size has expanded rapidly since the beginning of 2021, and the market prices of NFT-related stocks such as chilies and coins are also skyrocketing.
I'll discuss why NFT Art is so famous in the next section.
Features and mechanism of NFT Art
Currently, the market is rapidly expanding NFT Art.
Here, I will briefly explain the features of the famous NFT Art.
- It can prove uniqueness
- It cannot be tampered with
- Can record the creator/owner of the data
NFT Art can be equipped with many functions by blockchain technology.
It can prove uniqueness
First of all, NFTs basically use the Ethereum blockchain.
Then, by utilizing the mechanism called "ERC-721" of the Ethereum blockchain, an identifiable code is given to each digital data.
As a result, each NFT can now be identified as unique.
This feature allows NFT Art to have value as a work first.
It cannot tamper with
Blockchain, including Ethereum, records of transactions executed on the communication in "block" and manage it in a form shared by each user.
Since users share all transaction history, it is easy to find fraud even if one person edits the data.
In addition to this function, blockchain has realized a high-level security system by combining various technologies such as "consensus algorithm" and "smart contract."
Various information can be recorded.
Various additional information can be recorded in the created NFT Art using blockchain technology.
For example, you can record the creator of an NFT Art to prove that the work is genuine, or you can record the purchaser of an NFT Art to reveal ownership.
This information is also managed on the blockchain and cannot be tampered with.
In addition, NFT Art is explained in an easy-to-understand video on Bikkore TV, so it is recommended to check it together with this article.
How to sell NFT Art
If you have experience in making digital Art, try making NFT Art.
I will briefly explain how to make and sell NFT Art.
How to make NFT Art
How to make NFT Art is the same as making digital Art.
In the case of images, I will proceed with production using Photoshop, Illustrator, etc.
How to sell NFT Art
To trade your finished digital Art as NFT Art, you need to list it on the NFT Marketplace.
Follow the steps below to list on the NFT Marketplace.
- Log in to NFT Marketplace
- Create a virtual currency wallet
- Deposit the virtual currency required to buy and sell NFT Art in your wallet
- Enter the terms and conditions for selling NFT Art on the marketplace
- Upload NFT Art to sell to the marketplace
Let's create a wallet with "MetaMask."
Ethereum, which is used as a currency in NFT marketplaces such as OpenSea, is recommended to deposit in the wallet.
In the open market using the Ethereum blockchain, gas charges will be incurred at the time of the contract.
How to buy NFT Art
The method of purchasing NFT Art is almost the same as selling it.
- Log in to NFT Marketplace
- Create a virtual currency wallet
- Deposit the virtual currency required to buy and sell NFT Art in your wallet
- Buy the desired NFT Art
NFT marketplaces include OpenSea.
Let's purchase virtual currency for purchase at the exchange.
An example of NFT Art bought and sold at a high price
NFT Art can implement various functions by utilizing blockchain technology.
Here are three examples of NFT Art traded at high prices.
Digital art collage wins auction for about 65 million dollars
The highest-priced NFT Art ever traded is "Everydays – The First 5000 Days" artists and Beeple.
When this work was put up for sale by the major art auction company Christie's on February 25, 2021, it was bargained by many bidders and finally sold for about 65 million dollars.
This successful bid made Beeple engraved with his name as one of the most prominent artists.
Virtual sneakers
On April 22, 2021, 1SEC, which handles many services centered on the AI human business, launched virtual sneakers on the NFT marketplace.
As it is a virtual sneaker, you cannot wear it even if you purchase it.
It is just something to "watch."
This product is on sale in an auction format and is sold out at 5 ETH (about 12,149 dollars at the rate at that time) 9 minutes after the start.
1SEC has revealed that it has signed contracts with several companies following this sold-out, which also shows the strength of the NFT market.
Dogecoin
Dogecoin is one of the virtual currencies, and it became a hot topic in 2021 when its value was significantly increased.
The Shiba Inu showed in the image actually existed in the past, and the original image was put up for auction as an NFT on May 31, 2021.
When the first bidder appeared on June 8, the price rose steadily, and finally, on June 11, the bid was awarded at 1696.90ETH (3,468,220 dollars or more at the rate at that time).
If the price rises this much, it seems that artists and investors will have a chance.
Current challenges in NFT Art
NFT Art has dramatically expanded its scale by attracting the attention of investors, but its future is not only bright.
Here, I will introduce the current challenges of NFT Art.
Environment issues
NFT Art uses the blockchain of each currency at the timing of transactions.
Blockchain has advantages in high security and smooth transactions, but it has to do massive calculations instead.
It takes energy to perform calculations on the Internet, which leads to environmental destruction as a distant cause.
China has announced a policy of banning Bitcoin mining, but it seems that environmental destruction due to mass electricity consumption is included as one of the causes.
The environmental problem of virtual currencies that utilize blockchain is an inseparable issue for future development.
The fee is charged at the time of contracting
As of 2021, most NFT Art is made using the Ethereum blockchain.
The advantage of Ethereum is that you can easily create NFT Art, but there is also the disadvantage that you will incur a "gas fee."
The "gas fee" is the fee that is incurred when making a contract called the "smart contract" adopted by Ethereum.
Since the gas bill will increase according to the amount of communication by users, it will be disadvantageous for artists and investors as the NFT market expands.
Also, take this opportunity to check out the article comparing fees on cryptocurrency exchanges.
Legal development is not catching up
NFT Art has just started its service as with virtual currencies, so legal development has not caught up at home and abroad.
Among them, "art forgery" is a particular problem.
NFT Art can give digital art "uniqueness" by utilizing blockchain technology.
There are many cases of misusing this and listing other people's copyrighted works as their own.
This "gray zone" around the copyright should be eliminated as the legislation progresses, but it is still an uneasy factor.
Future potential and future prospects of NFT Art
I will explain the future potential and future expectations of NFT Art.
I recommend that you actually take on the challenge of trading after carefully determining the issues and future potential.
Expanding the market for trading NFT Art
According to the NFT data site NonFungible, the NFT trading volume in the first quarter of 2021 is about $ 2 billion.
That's 20 times more than the $ 100 million recorded in the fourth quarter of 2020.
And since NFT Art is a mechanism that can add "uniqueness" by handling digital Art on the blockchain, if NFT can be utilized in all digital art markets, its scale can still be expanded. It is believed to be.
Only a handful of artists are using the NFT Marketplace, so the market for NFT Art will grow as it grows in popularity.
Increasing usage of NFT
Currently, NFT is mainly traded as Art, but there is a strong idea that it will be used in various ways in the future using its blockchain technology.
For example, NFTs are used for electronic voting during elections because of the advantage of blockchain technology that cannot be tampered with.
In 2018, a demonstration experiment was already conducted in West Virginia, USA, and many local governments are focusing on development.
If the convenience of NFT itself becomes apparent, more and more people will try NFT Art.
Everything could be an NFT
NFT Art can value and trade various things other than "pictures" and "music."
On March 22, 2021, Jack Dorsey, co-developer and CEO of primary social networking service Twitter, made the first Tweet he posted into an NFT and sold it for about $ 2.91 million. Did.
I've never thought that one Tweet would create value.
In this way, the market size of NFT Art is expected to continue to expand because it is possible to value and trade what was previously thought to be worthless.
Q & A about NFT Art
Finally, three frequently asked questions about NFT Art and their answers.
- Is there an initial cost to create and trade NFT Art?
Read it all before trading NFT Art.
Is there an initial cost to create and trade NFT Art?
There is no initial cost when creating NFT Art.
Only when listing on an NFT marketplace such as OpenSea, will you need to pay for gas.
If you have created digital Art, let's make and sell NFT Art more and more.
For those who want to make a profit with cryptocurrencies, the article " How to earn cryptocurrencies " will be helpful.
Summary
This time, I introduced NFT Art.
- NFT Art is a combination of digital art and cryptocurrency blockchain technology.
- NFT Art can prove its uniqueness and value digital art by utilizing blockchain technology
- NFT Art is created in various forms other than pictures and music
- The NFT Art market has room for expansion due to the size of the digital art market.
- The gas cost when exhibiting NFT Art may increase in the future.
NFT Art is a market that has just been talked about.
There are still many investment opportunities left, so be sure to try trading as soon as possible.
