You may have heard of the NFT fad going on in the last few years in the crypto world. NFTs and cryptocurrencies all run off similar blockchain networks. Understanding the benefits of blockchain is a great way to see how this technology can and has transformed the art industry.
What is Blockchain Technology?
Blockchain technology has improved many different industries in the last several years. A blockchain network is an encrypted, immutable ledger for digital exchange and distribution. Blockchains track assets through every sale and trade; assets can be digital or tangible items. Blockchain technology can cut costs and reduce the risk for all parties in any transaction. Networks like these are critical for developing new sustainable and reliable business practices. Blockchain networks are entirely transparent and give the user a clear history of the asset and its transactions since its inception on the network.
What is an NFT?
In recent years, blockchain networks have been used for trading cryptocurrencies and NFTs. An NFT or non-fungible token is similar to a crypto coin in that NFTs are hosted on blockchain networks. However, NFTs are each unique and represent a specific asset. NFTs cannot be traded directly because they are entirely different, unlike crypto coins that can be exchanged for the same currency. Because NFTs are bought, sold, and tracked on a blockchain network, they are just as secure, transparent, and immutable as any other asset on a blockchain. NFTs can represent any asset, but in the last few years, the world of digital art has taken advantage of NFTs to create a whole new marketplace.
How Blockchain Benefits Artists
Before using NFTs and blockchain networks, digital artists struggled to maintain their intellectual property rights and sell their works online, where it’s so easy to steal other people’s art and images. The value of digital art hits the ceiling with the struggles of provenance and valuation. With the introduction of NFTs, these problems are one step closer to being solved. The unique code within each NFT proves the provenance of an original work of digital art, meaning no matter how many times that digital print is sold and bought, the original artist will always be known. Artists can ‘mint’ their digital works into NFTs to make them exchangeable on a blockchain network. The artist sets an NFTs marketplace value on a blockchain platform where NFTs can be sold and auctioned. NFT marketplaces such as FTX make it convenient for creators to list their art and make it easy for collectors to discover and purchase that art. When buyers purchase an NFT, they buy the full rights to the asset, not just a copy. Buying an NFT is just like buying an original work of art; just now, it’s all online!
What Does This Mean for the Future of Intellectual Property?
Not only do NFTs and blockchain networks benefit digital artists, but the future of this technology can improve many different industries. Creatives within various industries can utilize NFTs and blockchain tech to get their work directly to consumers and fans, rather than selling first to larger third parties such as record labels. Creatives will have more control over their art and how much it is sold for. Blockchain tech has helped create a whole new market value for artists and will continue to be a vital tool in the world of digital intellectual property.
Blockchain technology holds countless benefits for all types of business and personal transactions. The digital art world is just one sector that has heavily benefitted from blockchain networks. Artists everywhere use this new tech to make money and get their work discovered.