You have probably heard of NFTs (non-interchangeable tokens), but you do not know exactly what they mean or why you should be interested as a designer. This article discusses NFTs in the context of digital art and how you can turn your work into them.
An NFT currency unit that is stored on a blockchain and contains a unique digital file (e.g., picture, audio, video, game, etc.)
When you buy NFT this digital content is still posted on the internet however the original, "genuine" file itself becomes your property. The more popular this digital content is the more naturally it has value.
Interchangeable & non-interchangeable
It is important to know the difference between the two before we delve deeper into the issue. An item / property is interchangeable if it can be exchanged for other items / properties of similar value. For example, 100 GEL will cost the same if you exchange it for five 20 GEL.
Unlike a typical currency, non-interchangeable property is unique and does not change into anything. For example we can take a picture of the Mona Lisa placed in the Louvre. The original is only one, though there are too many copies of it in the world that are naturally found at a much lower price. Accordingly, the original Mona Lisa is a non-interchangeable property.
What is the use of NFT for digital artists
Basically, when a work of art is sold after the initial transaction it and the related monetary gains are absolutely the property of the buyer. In the case of NFT, even after the initial transaction, the original owner is entitled to a share of each sale.
NFTs allow developers to generate added value & need; As well as keep track of future sales and get some share from them.
This concept is similar to the royalty system, but the different factor is automatic tracking, ie it is no longer necessary to involve a third party. In the case of NFTs, this percentage is automatically accumulated and shipped with a decentralized blockchain at each sale.
How to start using NFT
If you are a graphic designer you are probably wondering how to convert your work to NFTs, what process you will have to go through and how much it will cost you.
First you need to make ETH (cryptocurrency required for all transactions on Ethereum) and ethereum wallet. You should then explore the NFT markets to find out which ones are best for your products.
When you choose a platform, cutting the NFT will cost you around $ 70-100. However, it should be noted that if your NFT is sold you will incur an additional "gas" charge, which is always variable.
Once you cut the NFT you need to find out what the starting price is and what the percentage of royalties you will receive will be. Then NFT online advertising with a "drop" is up to you. After all this you can just wait for the auction results.
Why do people buy NFTs?
People have long been buying interchangeable collectibles such as paintings, sports souvenirs, classic cars, and so on. If you have been interested in such activities, you will know that you have to request the services of mediator experts to check the validity of this or that property.
NFTs are for people of similar interest. Such a space did not exist in the digital world until now. And NFTs, like digital versions of collectibles, have changed the situation. In their case, the blockchain additionally acts as a verification system and it is instantly possible to understand the origin of this or that property. Given that they can create an artificial need in the market, they also acquire a collectible character from the consumers point of view. Plus they can be used as a progressively increasing value item.
Will NFT remain relevant?
This article will give you a brief overview on the benefits of NFTs in the digital marketplace. Because of their features, this whole system is built on the interests of the users. Consequently no one knows for sure if this is another crypto innovation that is temporarily in vogue or a separate property exchange system that will always have its extensive base.