What’s the crack with NFTs?
What’s the crack with NFTs?
“If you are an artist and still don’t use NFTs, you are potentially missing millions of dollars.” – Olawale Daniel
Artwork has been around since the dawn of time and is something that has always sparked conversation and divided people particularly with the huge sums of money drawn by particular artists and pieces.
“Why is X worth millions whilst Y is only worth £50?”
“What makes a world class artist?”
“Does art have to be complex?”
“What should I invest in?!”
Unfortunately we aren’t here to answer these questions or to advise you on how to invest your money, but what we can do is offer an insight into the future of artwork and “non-fungible tokens” (NFTs). We can deep dive and help you to understand why these “digital tokens” are selling for hundreds of thousands if not millions of pounds at auction, and what tokenisation onto the blockchain may look like in the future.
What is an NFT and what are the benefits?
A non-fungible token, in layman’s terms, is a token or in this instance, piece of artwork, that is completely unique and cannot be replaced or divided, in the same way as traditional art. Despite the fact there is only one definitive version, it is important to note the artwork may not be a completely unique design but part of a set and you may have number 1 or X amount.
For collectors the benefits are clear, you’ve got ownership of a unique piece of art including usage rights, you’ve supported your favourite artist and as with any asset there is the potential for it to rise in value. They are securely stored on the Ethereum blockchain and have benefits for both you and the creator whilst in your possession and through secondary sales.
For artists they are able to quickly tokenize their art and upload it to an auction site ready for an immediate sale, the ease of sales is a huge benefit for them. Similarly the ability to claim royalties for secondary sales is a massive bonus, no longer do artists get forgotten after the first sale but they continue to reap the rewards from their creativity every time the work is resold.
More than art…
It’s not just your favourite artwork that can be tokenised and listed on the blockchain for purchase. An article from Hackernoon broke down the specifics of what can be tokenised and made available for purchase.
“From traditional assets such as bonds, commodities, venture capital funds and real-estate to exotic assets such as artwork, race horses, sports teams and celebrities, companies across the world are using blockchain technology to achieve the vision of a tokenised world.”
This article highlights that we are living in an age of tokenization, and with the numerous benefits provided by the blockchain, including transparency, security and accessibility we will see more and more real life items available as time progresses. Once the regulatory challenges have been overcome there will be nothing stopping tokenisation from being used globally to make purchases and authenticate ownership of assets.
But is it the future?
Blockchain technology in itself has a wide range of applications across multiple verticals so it is hard to see it not becoming the norm in the near future, and we believe that tokenization of assets is the natural progression in the chain of ownership moving forwards.
We might be a bit biased as we love all things crypto but it’s definitely a growing market and we’re aiming to drive this adoption process by pushing positive PR into the mainstream press and changing people’s attitudes and understanding of NFTs and the blockchain.
Working with blockchain brands such as Zumo, Ether Cards and Minty, we have a strong track record of creating and pushing content through a wide range of sources including social media and blogs which ties accompanies our deep rooted affiliation with the space perfectly, and we’d love to help you.
Contact us today to find out more about what we can offer you and your brand as we look to normalise cryptocurrencies and NFT’s through innovative businesses and amazing PR.