20 May Non-Fungible Tokens (NFTs) And The Art World
As the world transitions into more of a digital age, the technologies we use both become more advanced and more secure. One example of this is non-fungible tokens (or NFTs). You may have heard of NFTs in the news lately, and the rising popularity of use in the art industry.
But if you haven’t heard of NFTs, don’t worry – we’ve got you covered. We’ll look into NFTs, which stands for non-fungible tokens, how they work and why they are attracting increased interest around the world.
What is a Non-Fungible Token?
The definition of non-fungible means that it is unique and can’t be replicated. Unlike a bitcoin, for example, it is one of a kind and can’t be traded in for another exact token, every NFT token is individual. They represent ownership of a digital piece, with one individual being able to own a single NFT at any time.
NFTs are digital assets, some non-fungible token examples include NFT art, music, a film, or event tickets. This technology has resulted in the increasing popularity and the evolution of NFTs in the art industry for trading digital pieces.
Creating NFTs also appeals to content creators as artists can release content previews, following the distribution of full access when individuals purchase the NFT.
Some examples of non-fungible token projects include the popular ethereum-based game ‘Cryptokitties’. This game involved collecting virtual cats with each digital animal represented by an NFT. The game gained mainstream popularity in 2017 and marked a signature moment for the future of NFTs as it generated interest from all around the world.
What are the Benefits of NFTs?
Creating NFTs is known as ‘minting’, and making these can have multiple benefits for the modern world. Non-fungible tokens (NFTS) have numerous benefits to both the seller and the buyer, let’s explore some of the main benefits.
Easily Transmissible
Because everything involved in NFT is digital, all the transactions and trading takes place online. As the transmission is completed online, the transactions are simple and make it ideal for selling to a global customer base.
Authenticity
NFTs provide authenticity, with fraud prevention being the main factor. As NFTs are unique it ensures you get the specific asset with a certificate of proof that is secured with blockchain technology. This is crucial for the art world as fraud is a rising concern for many digital artists.
Unique Ownership
With NFTs, you gain ownership rights to the asset. Not only this, but your NFT is unique to you, and owning a piece of art that is unlike any other is an interesting investment that has the potential for profit.
While there are some risks associated with NFTs such as the volatility of the market, if you’re smart you can buy and sell items for profit.
How is this related to Cryptocurrency?
Many individuals question the difference between NFTs and cryptocurrency, with both being digital forms of transactions. Cryptocurrency, however, represents more of an online currency or digital cash rather than a particular item of digital format. It is also ‘fungible’ which means it isn’t unique and can be used to purchase different goods of the same value.
There are different forms of cryptocurrency. After Bitcoin, Ethereums are the most popular forms of digital cryptocurrency. You can also buy NFTs using cryptocurrency, which is where the link comes from and why some users may question the difference between the two.
Benefits of Cryptocurrency
Heightened security
Cryptocurrency offers more security than normal electronic transactions. They provide better security and privacy due to the lack of personal data shared during payments and don’t store data that could be linked to an individual. This makes it appealing to many buyers, particularly in the art industry.
No Inflation
Many see this form of payment as the future of buying and selling, with physical money seemingly becoming more and more obsolete. As demand increases for cryptocurrency, so does the value, this will therefore prevent future inflation and provide an aspect of added security when investing.
Easy to Buy and Sell
Cryptocurrency is also very simple to purchase. With many currencies accepted across the globe with little transaction fees, it makes them easy to obtain and use, as well as transfer credit across borders.
Start Buying Art Online with Cryptocurrency
Very few companies, never mind art galleries, accept digital currency as an accepted form of currency. However, due to the popularity of such currencies including NFTs and cryptocurrency, more and more businesses are utilising this new technology.
PICTOCLUB is now offering a new payment option, so you can now purchase art with cryptocurrency online. If you’re interested in purchasing art with cryptocurrency, simply choose cryptocurrency as your payment option at the checkout.
Purchase NFTs at PICTOCLUB
PICTOCLUB also offers NFTs to our clientele in cooperation with leading platform OPENSEA. Take a look at our exclusive range of NFT art over on our dedicated category page.
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