Exploring NFT Art: How Blockchain is Changing the Art Market

The art market has witnessed significant changes over the centuries, with each era bringing new mediums, movements, and technologies. However, none have been as revolutionary as the rise of NFTs (non-fungible tokens). Today, NFT art is redesigning art as a product and the buying/selling process in the contemporary world. Such an unconventional approach to art acquisition based on blockchain platforms led to new opportunities for artists and collectors – verified ownership, transparency, and opportunities for additional income.

NFT art means a transformative experience in the whole industry. It is an embodiment of art and the digital era by enabling artists to make sales and main collectors to get a chance to discern the originality of the arts in question. As more artists turn to digital formats, NFT stands as the cornerstone of the art market. Thanks to multi-million sales and expensive collections, the sale of digital art is no longer a hobby for those interested but a genuine cultural and financial trend.

This article will explain the meaning of NFT art, why there is so much hype around it, and what new possibilities it opens for artists and art collectors. We will also explain how to create and sell NFTs with detailed steps and discuss the possibility of a new market for NFTs.

NFT Art

October 21, 2024

Daryna Markova

contributor DOM Art Residence

At its core, NFT art stands as a piece of digital art connected to a specific token – an NFT stored on a blockchain. Using a blockchain means that every piece of art can be easily verified and that the artist knows exactly to whom the digital artwork belongs. Unlike ordinary digital files that can be duplicated infinitely, an NFT guarantees that a discrete piece of art with the NFT is considered unique and original.

NFT art is rapidly growing in popularity due to its ability to prove ownership and scarcity. Digital art can now be viewed, bought, and sold much like physical art, with the added assurance of blockchain's transparency. This has resulted in millions of people running to the NFT industry.

The art backed by NFT has had tremendous market sales. One of the most notable examples is the sale of Beeple's digital artwork "Everydays: The First 5000 Days," which was auctioned as an NFT at Christie's auction house in March 2021 for $69.3 million. This single sale created international attention and placed NFT art on the map.

NFTs have been integrated into gaming, music, and fashion, thus giving them extra cultural value. Cross-industry collaboration makes NFT art interesting and can be applied to any company. In addition to these crazy-high prices, the essence of NFTs is in how they are revolutionizing the economics of art.

IAnother famous instance is "CryptoPunks," an Ethereum-based collection of ten thousand unique pixelated characters, a few of which have been sold for over $11 million. Such mind-boggling figures indicate that digital artworks can compete with and even outperform masterpieces.

The introduction of NFT art has not only changed the technical aspects of art collecting but also the economic and social dynamics between creators and buyers. Both have advantages from the NFTs' transparency, open accessibility, and monetary efficiency.

The custom was to create art and sell it once, and subsequent sales or increases in value belonged to buyers or galleries. This model excluded artists from secondary market revenues. It has shifted this concern with NFT royalties, which enable artists to benefit from subsequent sales with ownership of tokens.
One of the most revolutionary features of NFTs is its built-in smart contract capability. For example, artists can insert a clause in the NFT contract that receives a commission fraction of the crypto token each time the art piece is resold.
For instance, a painter can opt for a 10% royalty, which is automatically deducted from the NFT. Whoever wants to sell that NFT pays 10% of the value of the card to the artist. This means that artists are not only sellers of a particular product for a particular price but can now sell the same product over and over again as the product appreciates in value.
This has allowed artists to develop additional income flows, establishing a sound business model. Sellers do not have to approach galleries or any middleman to sell their art since the blockchain markets directly connect the creators to the consumers.

Another one of the peculiarities of NFT is its capability to show potential for being viewed all across the world. Historically, art markets are more or less tied to geographic spaces, the release of art exhibitions, and the possibility of buying and selling paintings at art fairs and auctions, which are only occasionally open to an extensive target audience. Conversely, NFT art can be accessed at any time of the day or night, and artists and art collectors from all corners of the globe can sell and buy.

Marketplaces such as Open Sea, Super Rare, and Rarible, among others, have leveled the playing field. Based on the selected case, artists from any area can upload their digital art and gain an international audience as soon as possible. Collectors are often not bound by geographical location, and the artists can operate outside the confines of a local art market.

Additionally, the main premise of every digital piece of art can be bought by anyone with cryptocurrency, making the art market more equalized. This means that one does not have to 'know someone' or be a millionaire to be able to start art collecting; one only needs a strong internet connection and a digital wallet to dive into the art market.

Digital assets have ownership records on the record, and the blockchain technology at the core of NFTs provides the highest levels of provenance. Historically, with normal paintings, you usually need to find out who the owner was, and most times, that may not even be traceable; however, with NFTs, there is a record of ownership in an immutable ledger.

Blockchain guarantees that all the transactions connected to the NFT are stored and, therefore, transparent. This helps collectors easily identify an artwork's legitimacy. Consequently, forgeries or fakes are not easy to circulate in the market again, for they have already hit one market. The ownership of NFT art can be proved, and therefore, customers can feel assured while buying through the use of blockchain technology.
For artists, this means that whenever they release their art into circulation, it is stamped with their name, even when it changes hands several times. This traceability adds value and believability to both the artwork and the artist.

Creating and selling NFT art may seem like rocket science, but it is simple. Here's a step-by-step breakdown:

First, you have to make a digital piece of art. This could be anything from digital painting to music, video, or a 3D model. It, in fact, depends on the kind of tokens that you would like to design as NFTs. The key here is to make sure it is something that is not already out there, as that is what holds value in the elNFT Markets.

The next is choosing the blockchain on which your NFT will be launched. While Ethereum remains the most popular blockchain for NFTs, other options like Binance Smart Chain, Flow, and Tezos are also viable. Every blockchain has fees, environmental impact, and specifications, so you can better define which will match your objectives.
Once you have selected your blockchain, you will need to pick NFT marketplaces where your works will be sold. Some of the most used platforms are Open Sea, Rarible, Foundation, and Superb. These platforms enable artists to create their artwork and sell NFTs on the Blockchain.

To create and sell your NFT, you will have to use a cryptocurrency wallet. Popular wallets used in the NFT space include MetaMask and Trust Wallet. After setting up your wallet, you may use it to purchase a small amount of Ether, which we must pay to mint the NFTs.

Minting means creating a new token on the blockchain and essentially is the process of creating an NFT. Lastly, ready your artwork, then list it on the NFT marketplaces of your preference. The file will be encrypted in the blockchain since it shall act as a unique, credible form of value during the minting. At this stage, you can also decide on royalty percentages that you want the contract to pay you a share of the future resale of the NFT on the secondary markets.

Once an NFT has been created, you are ready to sell it again on the marketplace. Customers may decide to hire you for a fixed price, which means you list your work at a certain price or bid, which other potential customers may bid for. You also have an option to set up a reserve price; thus, your NFT will be sold at this price.

So, on the buyer's side, if he buys an NFT artwork from you, ownership of that NFT will be transferred to him, and the same will be recorded on the blockchain. You will be paid in cryptocurrency, mainly via the digital wallet if any movie organizer. Once paid to your account, the transaction process is complete. From here, your NFT goes to the secondary market, where it can be sold again, so you get more money from your asset through royalties.

NFT cannot be dismissed merely as a fleeting phenomenon; it perfectly changes how one experiences, purchases, and sells art. It creates a new platform for artists to earn money from their creations, market their artwork to international clients, and fully own their ideas through tokenization. Many discussions focus on meeting the demands of the growing digital age, and the correlation between art and technology can only ascend with NFTs at the helm.

Over time, there is potential for NFT art in the future. As new developments continue to be made with the future use of blockchain technology, we can expect more great improvements within the NFT sector. The future belongs to this art in both collecting and art in general and to new untapped markets in terms of experience, art forms, and curation through new digital and virtual mediums. This combination of creativity and technology indicates that the art world is surviving and evolving in this new digital environment.