The idea of “crypto art” is becoming popular in the blockchain world.
It can be defined as a digital artwork or another type of work that has been created and then encrypted through cryptography so that only those who have access to the decryption key can view it.
The first-ever piece of “crypto art” was revealed on July 28th, 2017 by 3D artist Julie Roys, who calls herself “Crypto Queen.” She states that she wanted her work to depict how new technologies like cryptocurrency will change our lives.
Since then, more and more artists have started to follow her steps, indulging in this new “crypto-mania”.
In this post, we will cover this new topic trend, trying to answer the main questions you may ask about it:
- What is an NFT and what are they used for
- How do you create an NFT
- Why should artists get into it
- The benefits of using a blockchain to store your work
- Examples of successful crypto-artists
With the art industry being worth $1.2 trillion, a new frontier for “crypto artists” has opened up to make their work available to collectors who are looking for something different than traditional financial investments.
What is an NFT and What are They Used For
A “Non-Fungible Token” (NFT) is a type of crypto token that can uniquely represent something like an item, property, or even a digital asset.
With the help of NFTs, you can create and trade new items in games and on platforms such as Ethereum without having to give up ownership rights for those assets.
It’s a unique digital asset, not like your typical cryptocurrency which can be exchanged for other currencies on the market. Non-fungible tokens are more specific and have an identity of their own. You can use them to represent ownership, authenticity, or scarcity.
As an artist, you could create a token to represent your latest digital painting, and it would be absolutely unique. You’ll never have two paintings with the same NFT code on them, and the NFT code is always linked to your painting.
There are two ways you can trade Non-Fungible Tokens – either through a centralized exchange or on the blockchain.
- With an exchange like Coinbase, you can trade an NFT for another currency like USD or Bitcoin.
- With the blockchain, it’s different because exchanges typically don’t list every available NFT on the market – and that is where decentralized applications (apps) come into play.
Dapps are used to make peer-to-peer transactions through cryptocurrency with no middleman needed! You could create your own personal token marketplace too if you wanted to by listing all of the tokens you have up for sale in one place for anyone around the world to see.
It would be perfect if there was an easy way to verify these assets since not everyone will want their art getting replaced with someone else’s work at some point down the line…
NFTs may seem complicated but they are really just a form of currency like USD or Bitcoin.
How do You Create an NFT
There are a few easy steps to follow to create a non-fungible token:
- You need an Ethereum wallet such as MyEtherWallet.com or Metamask.io
- Create your token by picking a name and symbol for it, and fill out the rest of the fields (if needed).
- Click “Create New Token” button at the bottom of this page, then click on “Copy Address.” This will provide you with your token’s address, which you’ll need to send ETH from your wallet to create the token.
- Once the ETH is sent, you’ll need to wait until your token is created. It could take a minute or more, but you’ll get an email notification when the process is complete.
Note: Always make sure that your token’s name and symbol are not already in use before proceeding. You can check this by going to Etherscan and searching for a list of all tokens. If there are any similar names/symbols listed on the page, it will be a red flag.
Why Should Artists Get into NFTs
If you’re an artist, then you know how difficult it is to make a living. You work long hours on your art and are constantly looking for ways to sell it so that you can get paid.
But what if we told you that there was a way to sell your artwork without having to worry about the transaction costs? What if we told you that there was a decentralized network of buyers and sellers who were able to buy and trade with each other in tokens?
There are many reasons why artists should get into NFTs, but we will focus particularly on three of them:
- NFTs allow artists to be compensated for their work without having to rely on third-party platforms or gatekeepers;
- NFTs open up new avenues of monetization by allowing creators to sell access rights to their work;
- Artists can use the power of blockchain technology to ensure that their work is authentic and of high quality.
The Benefits of Using a Blockchain to Store your Work
Every artist has to deal with the difficulty of protecting their work when it’s not legally theirs. There are many ways an artist can protect their work, but a new and exciting way is by storing them on a blockchain.
Blockchains are distributed databases that keep track of transactions between two parties without the need for any central authority or third-party involvement.
In other words, blockchains ensure transparency and security in peer-to-peer interactions.
To store artwork on a blockchain, you would upload your image to one of these databases using unique identifiers such as hashes which provide protection from copyright infringement and help artists maintain ownership over their work while also making it easily shared with others who might want access to it.
We can summarize the main benefits of blockchain as follows:
- Increased Transparency
- Improved Security
- More Control for Artists
- Easier Sharing and Distribution with Others Who Might Want to Access
Examples of Successful Crypto-Artists
Ever since the rise of Bitcoin in 2013, a new kind of creativity has been emerging. A new generation of artists is experimenting with blockchain technology to create innovative and intriguing pieces.
A great example of successful platforms created by crypto-artists, who have made a living off their creations, is CryptoKitties and CryptoPunks.
CryptoKitties is a game created by Axiom Zen where you can collect, breed, and trade digital cats. You buy the kitties for Ether (cryptocurrency). The rarer of a cat you have, the higher your chance to get something good when breeding them with another one.
CryptoPunks is an online virtual pet collecting game, launched in 1997. They were created by John Watkinson who was then designing video games for Atari.
These two games are similar in many ways but there are also some differences:
- The graphics on these games look very different from each other; with CryptoPunks having pixelated images while CryptoKitties have more modern graphics.
- In CryptoPunks you can customize your pets with different colors and designs whereas in CryptoKitties there is no customization at all, the only thing that changes about them is their look or stats
A third example may be CryptoPets, created by Silviya Nikolova from Bulgaria, who designed it to help people who want to make their pets in the game feel like they are part of a family.
- CryptoPets don’t have any stats so you can only give them food and play with them on the virtual island where your pet lives; this is different from CryptoKitties because it has lots of gameplay mechanics that allow for more flexibility when playing with or breeding cats, such as buying clothing items for your pet and being able to change its look by changing their fur color or get certain features like pointy ears or stripes
- CryptoPets has an online marketplace where you can buy and sell your animals with other players. CryptoKitties also features a set of secondary markets, such as auctions for certain kittens which are received by purchasers during the auction period
In these three games, there is no trading between players, which means that all transactions take place through an online marketplace where prices fluctuate depending on supply and demand.
The crypto art market is still in its infancy, but as the industry matures and more artists develop their work using blockchain technology, it’s likely to become a major player.
With so many talented artists looking for ways that they can make money from their creations without giving up control over them or risking theft by selling physical copies of digital files, this new frontier has opened up opportunities for everyone involved.
For those with an eye on the future and a keen interest in emerging trends, NFTs are well worth exploring now!