What are NFTs and why are you hearing the term all over social media lately? Why are NFTs relevant?

Definitions:

NFT: Non-fungible token — a unique and original digital file that can’t be replaced with something else. Some examples of NFTs include artwork, music, games and more.

Blockchain: A record-keeping technology database. Blockchains store data in blocks that are then chained together. As new data comes in, it is entered into a fresh block. Once the block is filled with data, it is chained onto the previous block, which makes the data chained together in chronological order. The data entered is irreversible, meaning that transactions are permanently recorded and viewable to anyone. Blockchains are essentially a tamper-proof ledger of historical transactions.

Why are NFTs all the rage?

NFTs are being viewed as an evolution in a fine art collection. You can think of them in comparison to physical art collection this way — anyone can buy a Van Gogh print, but only one person can own the original. But with digital art, a copy is literally the same thing as the original, so why bother? For many, it’s the Social Media flex, of course. For others, it comes down to supporting digital creators. For others, NFTs are like any other speculative asset, where you buy it and hope that the value of it goes up one day, so you can sell it for a profit.

So, what are the benefits of NFTs for digital creators?

NFTs enable creators to monetize their pieces as traditional artists do. Pre NFTs, digital artists struggled to prove they were the original creator of their work since digital artwork can be so easily copied. NFTs help digital creators prevent unauthorized use of their work and produce scarcity around digital artwork, increasing its perceived value.

What are the benefits of NFTs for Collectors?

Aside from owning the original art, and that big flex, another added benefit of an NFT collection is the built-in verification of ownership through the blockchain. NFT collectors are risk-averse, digital futurists who are drawn to originality and choose to financially support the artists they admire.

When you consider the fact that an NFT by the artist Beeple sold at Christie’s Auction House for over $60 million (making it the most expensive NFT sold to date) perhaps you might start taking notice of what many considered a speculative fad.

Resources:

• https://www.socialmediatoday.com/news/the-basics-of-nfts-infographic/607589/
• https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq
• https://www.investopedia.com/terms/b/blockchain.asp
• https://artdependence.com/articles/a-collector-s-guide-to-nft-art-non-fungible-tokens/

Written by Ashley Garcia, Social Media Content Manager

Ashley Garcia is a content creator, photographer, and marketing professional in Fort Collins, CO. She is the Co-Founder of @hungryhungry_hipsters on Instagram and a Social Media Content Manager at Madwire.