How NFTs and Blockchain Technology Can Make Art Profitable Again
The Digital Loophole Gets Closed.
In the last year, every industry has took steps to participate in blockchain technology. From the finance world participating in decentralized finance or Defi. To construction using blockchain technology in projects, to now the digital art industry using it to make money off of it’s art, but also making a distinctive name for their art. The future of blockchain and the transformation it will continue to have on our modern society is just beginning.
One of the most popular ways recently, that blockchain technology has interacted with digital art is non-fungible tokens otherwise know as NFTs. If you don’t already know, according to Wikipedia, an NFT is a unit of data on a digital ledger [a database of transactions], often called a blockchain, where each NFT listed can represent a unique digital file. These digital files can range from artwork, audio, video and other forms of creative digital work.
NFTs are allowing individuals to sell their art for a profit in a new way. When the internet bubble burst, artist were struggling with pirated media, downloads that allowed their work to be seen digitally, and copyright policy loopholes that made it harder to truly turn a profit. It’s the same technology that allowed more people the ability to view their content, that made follower and audience size more profitable than the actual art itself.
Although the debate if NFT is simply a bubble or a new permanent ecommerce opportunity for the art industry continues. The purchase of an NFT doesn’t prevent it’s access and availability to everyone else, yet. It depends how individuals choose to sell the NFT, and what kind of NFTs they decide to sell.
For instance, Logan Paul made $5M off of creating digital collectable trading cards with a partnership on Bondly. Later it was reported that the Beeple sold an NFT for $69.3M in Christie’s Auction, making it the highest paid NFT at the time. In a Business Insider article, it was reported, Azalea Banks sold her NFT of her sex tape for $17k, and an individual purchased it and flipped it to be auctioned for $260M, toping off the Beeple NFT sale.
I believe the industry is seeing a bubble when it comes to the money being exchanged on the blockchain for these NFTs. Ethereum the cryptocurrency being used to make these exchanges have seen an 144.93% increase in 2020 alone. This caused anyone whom owned Ethereum prior to 2020, or periods within 2020, to have an increase in money value in USD, than prior. Also with the Federal Reserve Chairman Jerome Powell decision to decrease interest rates to 0% till 2023, the USD has been weakening in value and financial products outside of the cryptocurrency and some of the stock market, makes it harder for individuals money to hold value.
Conditions in our current economy with the Federal Reserve actions and some states lockdowns or business closures have decreased the mobility of individuals spending fun money in other parts of our economy, forming a bubble in the price individuals are willing to pay in auctions for artwork. Although the principles around NFTs, aren’t a bubble, and most likely will stay consistent in the future expansion of blockchain in the modern society.
How Anyone Can Use Blockchain & NFT to Change Their Business:
As a digital content creator myself, I see the future of NFTs for digital content creators in digital licenses and copyrights on the blockchain. I believe soon, business owners will be able to upload content for auction that they create, whether it be producers music beats, to cartoon characters for sale. And individuals will be able to purchase items on the blockchain as a license to use the content for their videos, or the ability to purchase an item for resale of the content in the future.
Currently NFTs are used for purchasing domain names on the blockchain. The blockchain simply proves a purchase has been done. If licenses and copyrights are done on the blockchain it would transform the industry and close legal loopholes of copyrights and music ownership forever.
In addition to that, musicians that first start in the industry can create NFTs for their content and songs in the beginning on a site like OpenSea. When they grow up and boom, fans will be able to own collectables of their content and the profits would go directly to the artist instead of a third party.
Also, I believe NFTs and Blockchain will transform the future of accountancy. Soon, NFTs would be considered apart of an asset. To have an NFT and own the license or copyright of songs or certain artwork for the entertainment industry or media industry will be vital and add to companies balance sheets.
How to Buy and Sell Your Own NFT
Currently the number one NFT Marketplace is called OpenSea. OpenSea allows anyone with an Ethereum Wallet to participate in the buying and selling of an NFT. They have relationships with multiple API’s that can help connect with your Ethereum Wallet. One called WalletLink pairs with your Coinbase Wallet and can be used through any internet browser without an extension.
Once you connect your wallet, you’ll be able to upload your artwork and start an auction price for the item. It’s currently based on the Ethereum to USD price. Be cautious that because it’s being traded with a cryptocurrency, the end price of the auction is dependent on the value of Ethereum at the time of the transaction.
My Last Words
I truly believe NFTs has a future to have some true powerful impact in our economy and fix holes. I think in the beginning many businesses and celebrities are experimenting ways to profit off of NFTs, and find tune. I don’t think the immediate profitability in the millions we have seen will continue. Although, I believe NFTs will continue to see the profitability opportunities for years to come.
As more Initial Coin Offerings (ICO) with newer blockchain technologies come into the market, we will see the opportunity for blockchain in every industry transform. It is truly the future innovation of our generation.
