17.6 Billion Worth Market: NFT Craziness and the Future of Art in a Digital World

April 26, 2022

17.6 Billion Worth Market: NFT Craziness and the Future of Art in a Digital World

April 26, 2022

The NFT Craziness

While the whole world is transitioning to the blockchain and cryptocurrency ecosystems, it is unthinkable for art and artists to not keep up. Thus, artists who want to protect the originality and ownership rights of their products have started to sell their product licenses and usage rights as NFTs, taking advantage of the security provided by blockchain technology.

The NFT ecosystem, which we can also consider as a modern auction, is becoming a growing market and sales are taking place at unbelievable numbers. “Quantum”, produced by Kevin McCoy-Anil Dash duo on May 3, 2014 and considered to be the first NFT, was sold for $ 1.4 million in the past months. However, this is just a small example of the NFT craze that has surrounded the world, because there are also NFTs that are sold at much more exorbitant numbers.

NFTs are one of the most popular products today.
NFTs are one of the most popular products today.

What is an NFT?

Non-Fungible Token (NFT) is a type of crypto token that licenses a digital artwork and documents its rarity. It does not have its own blockchain system and works within other blockchain ecosystems. The largest NFT markets are currently within the Ethereum blockchain network, but all cryptocurrencies can exchange NFTs and all blockchain networks can integrate NFTs into their systems if need be.

So can everything be sold as an NFT?

Technically yes.

After all, an NFT is a “license” showing ownership and originality, and the only thing required to prove a product’s authenticity is to have a document showing it. Therefore, when you are the licensee, you have the most valuable products and rights.

In other words, anything desired by the producer can be turned into an NFT and sold. This means that a large and diverse market is emerging. Although digital drawings and designs dominate the NFT markets, music albums, effects, drawings, animations and even our tweets can be traded as NFTs.

Sharing NFTs

Let’s say you researched what an NFT is, you liked the idea and then you bought a $10,000 worth NFT of a digital painting. Then you saw the same painting on many websites and realized that you can download and save it to your computer for free. If this painting is not just for you and everyone can access it this way, there is no point in buying the NFT, right? This is the biggest question about NFTs;

“How can a digital work of art preserve its authenticity?”

The answer is actually very simple. You can download a Picasso painting online or buy a copy of it, but the original belongs to only one person. This is why copies aren’t worth much at all and this is also why you had to pay $179 million for an original Picasso. NFTs work in the same way.

Anyone can access the copy of the digital product you purchased, but only you have the original and ownership rights of the product. Even the artist who made the NFT cannot remake the same NFT you bought. Since the NFT you bought is unique, it can be worth millions of dollars depending on the artist who made it and its popularity. For example, the digital painting collage which is also known as the first NFT to be auctioned, “The First 5000 Days” produced by Beeple has been sold for a record $69 million last year.

Anything you can think of can be an NFT.
Anything you can think of can be an NFT.

NFT Market

The NFT market, which had a transaction volume of 14 million dollars in the first half of 2020, reached a volume of 17.6 billion dollars in 2021 with a record increase. This is actually the biggest proof of the NFT craziness. One of the biggest reasons why NFTs are so popular is that every artist can sell their products on equal terms and with maximum access in the blockchain ecosystem, regardless of amateur-professional discrimination.

There are many online NFT markets such as OpenSea and Rarible and they are working cross-blockchain across the Ethereum, Solana, Polygon and Klaytn blockchain ecosystems.

Purpose of an NFT

Like any product, this is a question of usage. If you are an investor, of course, your goal will be to use this feature of an increasingly valuable product to make a profit. If you are an artist, your first priority may be to digitize your works and make a living out of it economically.

If you are a newcomer to the art enviroment, you may want to enter the NFT market because your goal is to benefit from interaction and share your art with large audiences. In short, there is an ecosystem that meets whatever your purpose is. Naturally, this causes NFTs to become popular day by day.

The common view of all investors is that NFTs will reach new records in terms of transaction and value volumes. It is predicted that this trend will continue for a long time with increasing amount of transactions, newly released NFT products and the emergence of new markets. It seems that we will hear the news of record sales with astronomical figures many more times.

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