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NFTs (non fungible tokens) are essentially a unique unit of data (which is non-interchangeable) which is subsequently stored on a digital ledger. These tokens can be used to purchase or represent items such as photographs, audio, video, and other forms of digital art. NFTs use blockchain technology (such as Tezos) to establish a verified and public proof of ownership. It is important to note that, while NFTs use the same blockchain technology that power cryptocurrencies, they are not cryptocurrencies in their own right. But what exactly does this mean and how do you go about purchasing them?
Your NFTs can be bought from several marketplaces that integrate the Tezos blockchain technology. Objkt.com is a prime example of these marketplaces.
Objkt.com provides a search screen where you can browse the latest artworks that are available and have a look at how many editions are available (some artists place one edition whereas others place up to fifty). You can also browse by collection, where prices can vary from 2,000 ꜩ to 696,969 ꜩ. Other artworks can be available free of charge, which is particularly useful for up-and-coming artists.
In terms of purchasing your art through the NFTs system or by the traditional auction system (or from a gallery) where you exchange fiat currency for the art, there isn’t a great deal of difference. Purchasing the art through an NFT, however, does mean that you have ownership of the art (although the artist does retain copyright of the piece). Purchasing through an NFT means that you, as the purchaser, own the original piece of art. If you purchase through the traditional auction and gallery systems, you own a copy of the original, but not the original itself.
The short answer is yes, absolutely. By using the NFT system on a blockchain technology, you’re showcasing your artwork to a digital world that may not have been exposed to it before and you’re maximising the possibly of selling your work to the masses. You’re also ensuring that, whilst purchasers will be purchasing an original version of your digital work, that you’re keeping the copyright and that you are able to sell on multiple other platforms as well.
It is also worth bearing in mind that you don’t necessarily have to refer to yourself as an artist to sell your work in this way. It is a common misconception that an artist is someone who merely draws, paints, or creates graphics, but video and audio work can be sold in this way as well. The creative industries are notoriously difficult to break into, so this could be a way in which you are able to showcase your work, make it affordable for other users to use if they so wish, whilst still maintaining your copyright to your piece.
Objkt.com offers either an auction and listing section, where users can choose to participate in an auction or to directly contact a seller to purchase one of their items. A listing is where users can offer to sell an item for a specific price. Any users can buy the token if they own the right amount of Tezos and a smart contract is created upon purchase. This can be cancelled – if cancelled the item is returned to the seller.
Objkt.com also offers two auction settings – a highest bid auction and a price drop auction. The highest bid auction (which is referred to as the English auction) is where the highest bid receives the item. The auction has to finish after the selected time has passed and once the auction has been completed, the auction creator or the person with the winning bid can complete the auction (which triggers the exchange of the item and the price in Tezos.) The price drop auction (which is also known as a Dutch auction) is an auction where the price of an item is lowered in a linear direction from a starting price to an end price during a specifically fixed time frame. The item can be purchased for the immediate price which is shown on the auction page. Once a user has decided to purchase the item and has selected buy, the auction is completed. These auctions can be cancelled by the auction creator at any time. Whether you are using the auction or a direct selling system, Objkt.com charges a 2.5% fee on any successful transactions that are completed.
Again, the short answer is yes. Companies such as Marvel have launched their own NFTs, which have been designed to encourage users to collect specific items. This does demonstrate that NFTs are making their way into the mainstream and are becoming more accessible for those who are new to the cryptocurrency exchange markets and platforms.
There are, as with other aspects of the cryptocurrency exchange markets and platforms, downsides that consumers need to be aware of. As with any form of digital data, you need to be careful with how your purchases and NFTs are stored. Experts have stated that the same level of security that is applied to online banking details should be applied to NFTs and their purchases as well. Any attack on the data source can result in loss of purchases and a loss in NFTs that may be difficult to get back, even if the data breach is no fault of yours.
There are, of course, implications in purchasing digital art as well. As with any aspect of the creative industries, there is also the chance that your purchase can lose its value. Once this has happened, you still have your digital artwork that you have purchased, but it would be incredibly difficult to sell on to other users in the marketplace.
As well as purchasing digital art through a dedicated auction, NFTs can be used to purchase collectibles from notable users and also be used as a wager in some marketplace lotteries. Some marketplaces
If you feel that you are ready to get into the non fungible token world and are beginning to consider yourself to be an art connoisseur, then there is no reason why you shouldn’t go ahead and venture into the NFT world. Always be aware of what you’re purchasing – are the artist(s) reputable? Have they had good reviews from other users? What are the trends in terms of the value of their artwork – is it in the ascendency or is it starting to dip? You can always be lulled into thinking that you are getting a bargain when you buy a cheaper piece of work, but always compare it to the work of others. If you can see a true passion from the work, then there is no reason why you shouldn’t go for it. But always do your research first.
If you are an artist of any sort, selling your work through a cryptocurrency marketplace can be a fantastic way of showcasing your work and gaining a following in a way that may have been difficult for you before. So if you’re keen to get more recognition for your work, think about uploading your work on the cryptocurrency exchange platforms.
