NFTs or Non-Fungible Tokens are a new and interesting way of representing digital ownership of art that can be easily verified and transferred in real time harnessing the power of blockchain technology. By using unique cryptography techniques harnessed through blockchain, NFTs have taken over the world of art by storm. They can help distinguish one art piece from another and prevent any replication, making them one of the most promising developments that are contributing to bringing blockchain into the mainstream.
How NFTs work in the art world is quite simple. For example, the biggest cause of concern for an art collector who owns the renowned Monalisa painting is to manage and transfer the ownership. In the non-NFT world, he will have to rely on a host of middlemen like auction houses or asset/art custodians to trade this valuable piece of art because only an experienced, trained eye can verify the authenticity of that work, when thousands of copies of precious and well-known art works like these exist. Another issue that often crops up is the proper handling of paintings and taking care of all security concerns.
By moving to NFTs, all records/transactions/ownership with regard to a piece of art is managed in a cryptographically-secured, privacy-protected manner that allows users to define the confidentiality level of each transaction. One can transfer the ownership records to another in real time which can be verified there and then. All parties can use smart contracts for managing escrows and other transactional related terms and conditions.
1. Reduced dependencies on middleman/agents
The global art market worth around 70 billion of dollars, is completely dependent on middlemen. As a consequence, manipulation and fraud is rampart which, in turn, leads to a huge loss for the artists and consumers because of a lack of transparency. NFTs and blockchain use smart contracts to ensure trust and, nobody can modify/edit/delete these transactions. The records are stored in a tamper-proof ledger making the transaction not only faster but also transparent and convenient.
Several buyers prefer staying anonymous when they deal in art. However, in the traditional world, buyers are required to disclose details to all parties involved in a given transaction. With NFTs, you can verify the ownership and transfer funds using blockchain without disclosing personal information. Yes, this is possible in world of digital art!
3. Ownership, Portability & Transaction
Is it possible to carry your precious art collection with you when you are on the go, or sell it instantly in a global marketplace? No, right? Owning NFTs are similar to owning a digital IP but in a decentralized way. You can prove ownership, transfer and carry your entire collection in your unique blockchain wallet. You can create an account on Ethereum, Polkadot, Tron and several other blockchain wallets through which you can easily hold, invest and transfer NFT’s. Moreover, physical art in the traditional world requires huge expenditure on insurance against theft, accidents, etc. Buyers are emotionally attached to their art, but once it is lost it is lost forever.
In today’s digitalized world, corporates are turning more and more to technology because trust lies at the crux of all their problems. Trust, emotions and value are what make the art world go around too, which is why NFTs are taking the art world by storm. Not only are they creating opportunities for new artists, if you look at the big picture, they are also helping create immutable arts that will never be lost, stolen or destroyed by any natural calamity.