What are NFTs in the art

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How NFTs can transform the art industry?
leewayhertz.com/nft-in-arts
The Internet sensation- NFT has created a strong
buzz in the Art market. Are NFTs transforming the
Art market? Maybe yes or maybe not! the out-turn
will take its course to establish the real
impact. But speaking of the present, it is
undeniable that NFTs are in momentum, defining
new dimensions for the Art market, especially how
artworks are traded. Now, here art is a very
broad category. It refers, not just, to aesthetic
artworks but also music, text publications, and
commercial design contents like those used in the
fashion and entertainment industry. This
article will cover in details everything about
NFTs in Art. However, before initiating the
discussion, lets set the framework of this
article. NFTs make more sense for digital arts,
like a digital painting, an e-Book, a Gif, a
digital image or any video clip. It is not that
NFTs cant be associated with physical artworks.
However, at its core, NFTs are digital, so this
article will specifically speak about NFTs of
digital arts. Table of Content What are
NFTs? NFT means Non-fungible token. Maybe that
expansion doesnt make it any clearer. So, for
the sake of definition, understand an NFT as a
unit of data recorded on Blockchain. This data
(or NFT) certifies a digital asset to be unique
and proves who the digital asset owner is.
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In simple words, every NFT is a crypto token
representing a particular digital asset like a
photo, a video clip, a Gif, an article, or even a
Tweet. At present, NFTs are popularly being used
to tokenize digital artworks, and then these NFTs
are traded in NFT marketplaces to earn a
profit. Now, it is important to understand that
NFT itself is not the Art or the asset it is
just the record of that Art. While NFTs are
stored in the decentralized Blockchain, the Art
itself is stored in some other off-chain
databases, like servers, computer systems, and
others. What are the key characteristics of
NFTs? NFTs are powered by Blockchain. The mention
of Blockchain right away reminds us of
cryptocurrencies. Do NFTs have any similarities
with cryptocurrencies? Partially yes, because
NFTs are also crypto tokens, just as Bitcoins and
Dogecoins are. So, being a crypto token, an NFT
also bears blockchain-typical properties like
decentralization, recording of transactions in a
distributed ledger, the immutability of
records, indestructible and verifiable. But
despite these similarities, NFTs differ from
cryptocurrencies in a very sharp
way. Cryptocurrencies like Bitcoin, Ether,
Litecoin are fungible, while NFTs are
non-fungible. Fungibility means the ability of an
asset to be interchanged for another of
like-kind. For instance, 1 Bitcoin can be
interchanged with another Bitcoin as their values
are the same. A note of one hundred dollars is
exchangeable with five notes of 20 dollars, again
because values are the same. But one diamond
cant be exchanged with another diamond because
no two diamonds in the earth are the same that
is why diamonds are called non-fungible, which
means non-exchangeable. NFTs are also
non-fungible in the same way. Every NFT is
unique, and you cant exchange or replace one NFT
for another. NFTs are made unique by encoding it
with a unique blockchain-native identification
code that is immutable and unchangeable. Some
basic but obvious attributes to NFTs are NFTs
are cryptographically authenticated. The trading
of NFTs happens using cryptocurrencies. The value
or price of NFTs fluctuates it may increase or
decrease over time. One NFT can have only one
owner at a particular time. With this basic
understanding of what NFTs are, lets understand
the scope of an NFT in Art. What makes them so
valuable is that they are being sold or bought
for millions. Twitters CEO Jack Dorseys first
tweet was sold for 2.9 Million, Beeples digital
Art The First 5000 Days was bought for 69
million, Lindsey Lohans NFTs are quite popular
and highly valued. What makes NFTs so important
or valuable in the art market?
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Needless to say that digital art is one of the
dominating forms of modern art. But, the problem
with digital content or art is that it can be
copied easily, and there can be n number of
copies available on the Internet. What is needed
is the authentication of the original art. A
Netflix documentary on fraud art, titled Made You
Look, very well explains the importance of
authentication in the art world. NFT has emerged
as a solution that can indisputably authenticate
the original digital art. The artist can create
an NFT for his digital art, which will create an
indestructible and immutable record in the
Blockchain and thereby will certify the art as
original and unique. The artists can also use
NFT to monetize this artwork. Over NFT
marketplaces, he can sell his NFT directly to an
interested buyer. Blockchain smart contracts
facilitate NFT trading, and the transfer of
ownership from the seller to buyer gets recorded
in Blockchain. This way, an NFT always functions
as an authentic proof of ownership. So, if you
own an NFT for artwork, you can always prove that
you are the owner of the particular digital art
tagged to the NFT owned by you, no matter how
many identical copies of the art are viral on the
Internet. The Beeples digital Art The First
5000 Days is easily available for download on
the Internet, but just having a copy of the image
doesnt make us the owner of the art. The Beeple
5000 days art is owned by that person, who bought
the NFT of that art for 69 million. Only owning
the NFT can make us the owner and give us the
right to sell the artwork in the future. One
point to be noted here is that transferring of
ownership is not identical to copyrights. The
artist or creator retains the copyright but
transfers the ownership to the new buyer. How
are NFTs used in the Art market? In the above
segment, it has been explained that NFTs are
valuable in the art market for two reasons It
certifies uniqueness to a piece of Art and thus
makes it valuable NFTs are indisputable records
of ownership Now, lets understand how NFTs are
used in the Art market. For ages, artworks are
used as an investment art lovers, collectors or
investors buy them, and when they feel that the
market value for that artwork has been
appreciated, they auction it or sell it, making
profits. The same business model applies to
NFT-backed digital artworks also. As the supply
and demand for digital arts has increased more
and more art galleries and auction houses are
adopting the trading of NFTs. Also, there are NFT
marketplaces, where artists can directly create
NFTS for their artworks and put it up for
sell. You may ask, why would anyone be
interested in owning an NFT? Perhaps, because
NFTs are unique and exist as high-valued social
assets that can offer customers a certain status,
something to flaunt about.
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• Now, one very obvious question here is how the
  value of NFTs gets decided? The value of NFT can
  be anything that the creator wants it to be.
  Whether or not anyone will pay the price for
  that value depends on many factors, like the
  popularity of the artists, the scarcity of the
  artwork, or how it aligns with the buyers
  interest. So, in conclusion, the perceived value
  of an NFT is linked to the perceived value of the
  creator or brand behind the NFT.
• NFT in Art has opened up new prospects for brands
  associated with industries like Fashion and
  Entertainment.
• NFTs are the new trendy ways of interaction to
  improve brand awareness and affinity.
• NFTs can be used to build a buzz for the
  pre-launch of a product.
• Brands can use NFTs as a medium to promote the
  collectible assets relevant to the brands.
• Brands can facilitate token sales with NFTs to
  raise funds and support causes they care about.
• NFTs can be the way to monetize their
  best-performing ads. Customers might be
  interested in buying a piece of the brands
  history.
• NFTs can be a great way to reward crowd-funding.
• How to capitalize on NFTs?
• Create and sell NFTs
• As discussed above, one way of monetizing NFTs is
  simply to create and sell NFTs. Digital artists
  and content creators are creating NFTs to sell
  their artworks and also to reach out to
  secondary markets. Every future sale of an NFT
  earns a loyalty
• income for the original NFT creator. Thus, NFT
  helps artists or creators to build an
  unbreakable revenue stream, as NFTS are meant to
  be timeless.
• Invest and trade NFTs
• Investors and collectors engage with the NFT
  market just as they engage with the stock market
  or cryptocurrency market. They invest, wait for
  value appreciation, then sell and earn profit.
  Some of the popular marketplaces to buy and sell
  NFTs are
• OpenSea Rarible SuperRare Foundation
  AtomicMarket Myth Market BakerySwap
• KnownOrigin

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3. Launch your own NFT marketplace Another way to
capitalize on the rage and popularity of NFTs is
to launch your own NFT marketplace. The booming
commerce of NFTs has also created the burgeoning
demand for NFT marketplaces. After all, it is the
marketplace that drives the whole market of NFT
trading, just the way retail marketplaces like
Amazon drive eCommerce. NFT marketplaces are in
popular demand at present as the market for NFTs
surged to new highs with 2.5bn in sales in the
second quarter of this year. Art galleries,
auction houses and entrepreneurs interested in
NFT trading can create a vested NFT-driven
business model by launching their own custom NFT
marketplaces. How can LeewayHertz help you
launch your custom NFT marketplace? As a
software development company, we also extensively
work in the space of Blockchain technology for
startups and enterprises. Specialized in leading
blockchain protocols like Ethereum, Stellar,
Croda, Hyperledger, Hathor and others, we take up
on-demand projects and also offer
quick-to-deploy custom solutions. One such
offering of ours is the NFT white-label
marketplace solution. Our NFT marketplace
solution helps Blockchain-focused entrepreneurs,
art platforms, start-ups, game publishers and
other interested businesses to launch their own
NFT marketplace and cut the time-to-market. It
facilitates bidding, selling, and trading of
NFT-backed digital arts or other assets. Apart
from catering to the Art market, our solution
also serves industries like Games, Music,
Audio/video, Sports, Real Estate and Digital
Collectibles. Some of the key features of
LeewayHertzs NFT white-label marketplace
solution are NFT Rankings on an hourly basis
The listing of tokens as a collection Search
filters Easy browsing by categories Unlockable
Content Mark favorites The option to add a
collaborator Wallet integration and much
more. Final Thoughts Regarding NFT in Art, it
can be concluded that NFTs are currently
demonstrating the promising potential to become
the future of artwork. But the use cases for NFTs
is not merely limited to art ownership. It goes
much beyond that and finds application in other
industries such as online gaming, live events,
virtual reality and real-world documentation. NFT
is a vast space, and you can do a lot more
reading and learning related to it. We have more
insights covering other prospects related to NFTs.