What is NFT Art? How Does it Work?

NFT is an acronym for non-fungible token meaning a portion code cannot be copied or changed whether in part or whole. Many artists appreciate NFTs because they are a secure way to safeguard ownership. It’s similar to your fingerprints which cannot be changed and they indisputably belong to you.

NFTs are relevant to digital assets. A digital asset is a non-physical valuable thing. Photos stored in the cloud or the bitcoin saved up in a bank are some examples of digital assets. You can’t hold them in your hands, but you can have them in your possession.

We know art comes in a myriad of mediums from acrylic paintings to musical composition to 3D animation and beyond. These pieces become NFT art when they are minted (which we’ll talk about a bit more in the next section). NFT art can be sold just like any other artwork. However, with NFTs, the artist maintains the copyright, which gives artists more control over trading or verifying their artworks.

Common NFT Terminology

NFT is a relatively new technology which means you’ll likely encounter some new terminology. You can find more comprehensive lists of NFT language, but here are some of the more common terms:

• Blockchain is a decentralized digital ledger that allows users to store information in a secure and permanent way. These ledgers track assets and transactions and cannot be modified or deleted.
• Minting is the act of publishing a unique digital asset on a blockchain for the first time. The asset is stored in a decentralized ledger or database (i.e. blockchain) and cannot be modified or deleted.
• Wallets, in this context, are digital devices or platforms that store a user’s electronic keys and allow them to access their cryptocurrency and tokens. Having a secure crypto wallet is essential. You’re probably familiar with earning tokens on gaming platforms, such as Plato. The place your tokens are stored is an example of a wallet.
• Drops are the initial releases of minted NFTs. This is a way for creators to communicate to their collectors that a new release is available for purchase or minting.
• Whitelists are lists of people who are granted priority access to an NFT at an appointed time. These lists contain wallet addresses rather than names or other identifying information.
• Polygon is a blockchain platform for fast and easy cryptocurrency transactions. To buy an NFT on Polygon, you must use Ethereum (ETH) or MATIC cryptocurrency.
• Ethereum is a blockchain used by many NFT artists for peer-to-peer transactions. It is also a widely accepted cryptocurrency. 
• Signatures are unique strings of data that verifies ownership. They are used primarily to authenticate transactions.
• Metadata is the information about the digital work associated with an NFT, such as the title, link to the asset, etc. You may be familiar with the metadata of a song ー the artist’s name, the producer’s name, etc.
• TokenID is the unique identifier number of the NFT similar to a license plate number.
• Web3 is an upcoming World Wide Web based on decentralized blockchain technology.

What does non-fungible mean and how does it work?

When something is fungible, it can be replaced by another identical commodity. For example, my $50 bill is the same as your $50 bill. We could trade bills and have the same thing as we had before. Non-fungible means that the asset cannot be replaced by another asset because it is absolutely unique.

To understand an item’s fungibility, answer this question: If I borrowed this and returned a different item, would this be an issue? You can borrow someone’s house but offering another house (even one that looks exactly the same) would surely raise some questions. But, as mentioned in the earlier example, you may borrow a $50 bill and return a completely different $50 bill (or even a number of bills totaling $50) without an issue because money is fungible while homes, humans, and NFTs are not.

Many tend to see an indirect relationship between availability and value. The more of something there is, the less value it has while the less something is available, the more valuable it is. NFTs create scarcity which is often interpreted as high value. Because there is only one you in the entire world, you have a high value. It is the same with NFTs, its unique existence gives them value.

Now, depending on your market’s demand, NFT art can be more or less valuable. Regardless of the format, be it PNG, JPEG, GIF, etc., the trends in your market will inform the demand. The interest in social media profile pictures and digital avatars, PFP NFTs, is growing and Twitter is taking advantage of this interest by allowing users to verify ownership of said avatars.

Where are NFTs bought and sold?

Buying and selling NFTs is pretty easy. First, you’ll need a digital wallet like Metamask. Metamask provides a secure online vault where you can easily store, access, and manage your digital assets. With a digital wallet, you can connect to blockchain-based marketplaces. In addition, NFT blockchain technology allows for the secure creation, buying, and selling of unique digital assets, including NFT art.

There are many, many blockchain-based marketplaces available to the public but here are a few:

OpenSea

OpenSea is one of the largest marketplaces for NFTs with over 80 million to choose from. Though it’s free to make an NFT, there are transaction fees where they collect anywhere from 5% to 15% in commission making it one of the most affordable platforms out there. A downside, however, is that OpenSea only accepts cryptocurrency for purchases.

Binance

The largest global cryptocurrency exchange, Binance is an easy-to-use platform that teaches you how to trade in the digital market. Their trading fees start at 0.1% making Binance a very competitive platform. Without telephonic customer service, complaints are handled through a ticket system which tends to lead to very long wait times for resolution.

Rarible

Rarible is a very new marketplace focusing on NFT mints and transactions. They minimize the seller’s minting fees by using a lazy mint process. Unfortunately, this means the buyer has to pay extra to fully mint the asset.

NFT Art Community

The NFT art community uses NFTs to prove ownership of the art, which allows them to take control of how their art is showcased and purchased. Trading is made easy without the need for a physical auction house. 

The metaverse opens up a myriad of possibilities where you can build your own gallery and showcase your minted art. Thanks to NFTs, there’s no question that you own the art you’re selling in an auction house governed by your rules.

For those intrigued by the NFT world and eager to build a dApp, envision creating a platform where artists and collectors can trade NFTs directly, without intermediaries. It’s not just about tech skills; it’s about grasping blockchain, smart contracts, and user interfaces to transform digital ownership and creative interactions. This is the decentralized community artists have been waiting for.

Animation Desk Unveils NFT Integration: Create, Share, and Monetize Your Art

Animation Desk now supports NFT minting and listing! The new NFT feature is available in Animation Desk for Android. Creators of all levels can mint their animations and list their NFTs on OpenSea, right in Animation Desk.

If you have artistic digital assets such as drawings, GIFs, etc., download Animation Desk Android to monetize your first NFT art! Learn more about how to create and sell animation NFTs with Animation Desk.

Feature image: Photo by Mo on Unsplash