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Crypto And NFT Art: How Do They Work, Examples And Future

NFTs have a bright future. It has started to change the mindsets of the people. More and more people are investing in the digital art forms. Due to the benefits that it offers like the uniqueness, authentic, and its origin, it has also become desirable. It offers the blockchain through which an artists can own a particular artwork and what not. 

By The Acadru Team | Nov 08, 2021

Digitalization has its impact on almost all the sectors of the economy, so does it is having on the financial sector. Cryptocurrency and the NFT art have gained popularity in the recent years. The industry has experienced a rapid growth in the NFTs as compared to the previous years. 

People are now using these digital sources to trade and market in the economy. NFTs and crypto arts are also booming in the market and selling like hot cakes.

What is Crypto Art and NFT?

Cryptocurrency and NFT stands for Non-Fungible Token or the digital coins that can be used in order to buy or sell the goods or assets. They are the non-fictitious assets that has no physical existence but you can own them. They are coded using the software and represent the real-life possession of assets like arts, games, music, videos, articles, etc. 

Having known what cryptocurrency is, crypto art is similar to it. Crypto art is just a digital form of art. You can own a collection of paintings digitally and it includes images, photographs, GIFs, videos, music, stickers and many more. The buyers can purchase the royalties and the rights to the digital paintings from the vast art network available.

How do they work?

Both Crypto currency and NFT are the digital assets but they are slightly different. The word fungible in the NFTs represent the fact that they are non-exchangeable and they cannot be exchanged for another NFTs. Whereas, the crypto currencies can be traded with another crypto currency and it denote equal value. Suppose you are having 20 dollars bill and if exchanged with a 50 dollar bill it owns the same weightage or value then we can say that it is a fungible token. 

Crypto art works on the blockchain system, so does the NFT. NFT uses the blockchain specifically Ethereum blockchain in order to function. Ethereum can be referred to as the similar kind of crypto coins or bitcoins used but it consists of one additional feature which is the extra information storage facility like the ETH coins.

Why they have become so popular?

Crypto art and NFT art are selling like hot cakes. They have become so popular due to the kind of features that it offers to the artists and the people. They consist of the digital art that can be used by the artists by either owning the royalty or the ownership.

Now you might be thinking that digital images or paintings can easily be copied so what’s the use of purchasing them. Then let me inform you that NFTS are based on cryptographic technology that doesn’t allow any duplication. 

Some of the benefits due to which it has become so desirable are as follows:

  • Uniqueness: The NFT arts are unique in nature. A NFT art work cannot be copied or duplicated. Even if you sell the NFT in another form then also it remains unique. For instance, you cannot sell an NFT and receive the same value of NFT in return. NFT offers you a unique set of data which is authentic in nature.
  • Scarce resource: The NFT art works are the digitally scarce resources available as it is limited and thus have a huge demand. Think about the one painting of Mona Lisa and the value it has.
  • Ownership of the artworks: This is one of the most amazing features that the NFT offers. As you already know that the NFT works on the blockchain and it can help you to link it with a single account and you can own an artwork and also prove your ownership.

The above listed benefits of the NFT arts leads to paving the road of success and growth for the NFTs.

Example of NFTs

NFTs has taken the market like a storm. In the recent months, the most expensive NFTs were purchased. NFT’s can be a unique digital artwork, an in-game item, a unique sneaker in a limited-run fashion line, an essay, a domain name, a digital collectible or a ticket that gives you access to an event or a coupon.

Some of the examples of the most expensive NFTs are as follows:

  • Everydays: The First 5000 Days: Everydays, the first 5000 days is the most expensive artwork that has ever been sold. The net worth of this artwork was around $69.3 million. It was created by a famous artist known as Mike “Beeple” Winkelmann. The buyer of this artwork was Vignesh “Metakovan” Sundaresan.
  • The second most expensive artwork was CrytoPunk sold for $11.8 million.

Future of NFTs

NFTs have a bright future. It has started to change the mindsets of the people. More and more people are investing in the digital art forms. Due to the benefits that it offers like the uniqueness, authentic, and its origin, it has also become desirable. It offers the blockchain through which an artists can own a particular artwork and what not. 

NFTs will continue to change the mind of people and it will continue to grow and succeed in the future. NFTs have entered into the metaverse also. Gaming and in gaming goods are available from which the players can directly purchase and experience the amazing world of metaverse.