Power of NFTs in Digital Art: A Guide
Written by  Daisie Team
Published on 8 min read

Contents

  1. What are NFTs?
  2. How do NFTs work?
  3. Why NFTs matter in digital art
  4. How to create and sell NFTs
  5. Legal implications of NFTs
  6. Benefits of NFTs for artists
  7. Challenges of using NFTs in digital art

Imagine if you could make your digital art more valuable by making it one of a kind, like a rare gemstone. Would you do it? Welcome to the world of NFTs and digital art—a game-changer in the creative world. This guide will take you through the power of NFTs, from understanding their basics to their impact on digital art, and how you can leverage them. So, let's dive in, shall we?

What are NFTs?

At its core, an NFT, or Non-Fungible Token, is a type of digital asset. It's like a certificate of ownership for a unique item or piece of content. Now, you may be wondering, "What does non-fungible mean?" Well, it means that it's special, one-of-a-kind. Unlike a dollar bill or a Bitcoin—which are fungible because you can trade one for another of the same value—an NFT has its own unique value. It's like trading a Picasso painting; no two are exactly the same.

So, why are NFTs so popular in the digital art world right now?

  • Uniqueness: Each NFT has information or attributes that make it different from any other. That's why digital artists love NFTs—they make their artwork unique in the digital world, much like a physical painting is in the real world.
  • Ownership: NFTs use blockchain technology, which is like a digital ledger that records transactions. This means, when you buy an NFT, there's a record that you own the art, even if someone else copies or shares the digital file.
  • Scarcity: Artists can limit the number of NFTs for a piece of digital art. This scarcity can increase the digital art's value, much like a limited-edition print of a physical artwork would.

Remember, NFTs aren't just for digital art—they can be used for other digital assets like music, videos, and even tweets. But, it's the art world that's truly feeling the impact of NFTs. So, let's explore the relationship between NFTs and digital art a bit more.

How do NFTs work?

Are you ready for a quick trip behind the scenes of NFTs and digital art? Here we go.

Underneath it all, NFTs harness the power of something called blockchain technology. If you're unfamiliar with the term, think of it as a gigantic, public record book. Whenever someone buys a digital artwork as an NFT, that transaction gets recorded in the blockchain. It's like getting a receipt for your purchase, but a receipt that everyone can see and no one can alter. It's this public, unchangeable record that gives NFTs their trustworthiness.

So, when you buy an NFT, you're not just buying the digital art—you're also buying a blockchain entry. This entry proves that you're the owner of the art. It's like having a deed to a house, but for your digital art instead.

If you're a digital artist, you create an NFT of your art by "minting" it. This process involves uploading your artwork to a marketplace that supports NFTs, like OpenSea or Rarible. Then, you set the number of copies you want to make available—this could be just one copy to keep things super exclusive, or hundreds if you want to spread the love. Once you've paid a small fee (to cover the computing power needed to add your NFT to the blockchain), your NFT is ready to go!

Here's an interesting tidbit: because each NFT is unique, they can't be directly exchanged like regular money or Bitcoin. This is where the term "non-fungible" comes from. So, if you're thinking of trading NFTs, bear in mind that you'll have to agree on the value of what you're trading, much like you would if you were trading baseball cards or comic books.

And that, in a nutshell, is how NFTs work. But why does this matter for digital art? Let's find out.

Why NFTs matter in digital art

Now that we've got the how, let's talk about the why: why do NFTs matter in digital art?

Imagine you're an artist. You've spent countless hours poring over a digital canvas, perfecting every pixel. Finally, you step back — it's done. Your masterpiece. But now comes the tricky part: how do you sell it? How do you prove it's yours? How do you stop people from making countless copies, muddying the value of your work?

This is where NFTs come in. By turning your digital art into an NFT, you can sell your work with a guarantee of authenticity. Remember the blockchain entry we talked about? That's your proof. It's a public, unchangeable record that says "This person owns this piece of art". It's like an artist's signature, but even stronger.

On the other side of the coin, as a buyer, you get the assurance that the digital art you're purchasing is authentic and unique. That blockchain entry proves that the NFT you're buying is the real deal. It gives you bragging rights and the potential for your investment to grow in value.

And here's something else: NFTs can also contain smart contracts. These are mini-programs within the NFT that can do things like give the original artist a cut of any future sales. This is a game-changer for artists who, in the past, would often miss out on the increasing value of their work over time.

In essence, NFTs create a bridge between the digital and the tangible. They give digital art a form of physicality, a sense of ownership, and a seal of authenticity. For artists and collectors alike, NFTs have shifted the landscape of digital art, making it more viable, valuable, and vibrant than ever before.

How to create and sell NFTs

So, you've made a piece of digital art, and you're ready to turn it into an NFT. Exciting times! But where do you start?

Here's a simple path to follow:

  1. Choose a blockchain: Most NFTs use the Ethereum blockchain, but others like Binance Smart Chain or Flow are also options. Each has its pros and cons, so do some research to see which one fits your needs best.
  2. Get a digital wallet: This is where you'll store your NFTs and any cryptocurrency you need to buy or sell them. There are lots of digital wallets out there, so make sure you choose one that's compatible with the blockchain you're using.
  3. Buy some cryptocurrency: Most NFT transactions happen with cryptocurrency, usually Ether if you're using Ethereum. You can buy cryptocurrency on various exchanges and then transfer it to your digital wallet.
  4. Mint your NFT: 'Minting' is the process of turning your digital art into an NFT. You do this on an NFT marketplace, like OpenSea or Rarible. There might be a small fee (known as a 'gas fee') for this process.
  5. List your NFT for sale: Once your NFT is minted, you can list it for sale on the marketplace. Set your price, and you're good to go!

And there it is: your digital art is now a sellable NFT! Remember, just like any artwork, the value of an NFT lies in the eyes of the beholder. So, it's important to find the right audience for your work.

Happy minting!

Now, let's talk a little bit about the law and NFTs. It might not be as fun as creating digital art, but it's super important to understand, especially when it comes to selling your work.

First things first: copyright. When you mint an NFT, you're not actually selling the copyright to your digital art. Instead, you're selling a kind of 'proof of ownership'. It's like saying, "I own a limited edition print of this artwork," not, "I own this artwork and all rights to it."

What does this mean for you, as an artist? Well, unless you state otherwise, buyers of your NFTs do not have the right to reproduce or distribute your artwork. They can't put it on t-shirts, they can't sell prints, and they can't use it in their own work. They just own a special, blockchain-verified version of it.

On the flip side, if you're buying an NFT, you should be aware that you're not buying the exclusive rights to an artwork. Remember, the internet is a big place, and the same digital art can exist in multiple places at once.

Another legal aspect to consider is taxes. Yes, just like any other income, money earned from selling NFTs can be subject to tax. The specifics can vary depending on where you live, so it's a good idea to chat with a tax professional about this.

In short, whilst NFTs and digital art offer exciting new possibilities, they also come with their own set of legal considerations. So, make sure you're clued in!

Benefits of NFTs for artists

Okay, so we've got the legal stuff out of the way. Now, let's get to the good stuff — the benefits of using NFTs for your digital art.

First off, NFTs can provide a new income stream for artists. By selling your work as NFTs, you can reach a global audience of collectors who are interested in digital art. And because NFTs are sold in cryptocurrency, you can receive payment from anywhere in the world.

Another awesome benefit is the concept of 'resale royalties'. Here's how it works: every time an NFT of your art is resold, you get a percentage of the sale. This is a game-changer for artists, who usually don't see a penny when their work is resold at a higher price.

Plus, with NFTs, you don't need a gallery or an agent to sell your work. You can do it all yourself, directly from your computer. This means you have full control over your art — from setting your own prices to deciding who can buy it.

Last but not least, NFTs are great for authenticity and provenance. Because every NFT is recorded on the blockchain, it's easy to verify who created an artwork and who owns it. This can help protect against forgeries and disputes over ownership.

So, as you can see, NFTs and digital art can be a powerful combination for artists. Why not give it a try?

Challenges of using NFTs in digital art

Let's be real. While NFTs and digital art may seem like the perfect pair, it's not all sunshine and rainbows. There are some unique challenges that come with this territory. Let's explore a few.

First up, we have environmental concerns. Cryptocurrencies like Ethereum, which most NFTs are built on, are notorious for their high energy consumption. This has led to some serious discussions about the carbon footprint of NFTs. If you're an artist who values sustainability, this might be a tough pill to swallow.

Then there's the volatility of cryptocurrencies. Remember, NFTs are traded in crypto, which can be highly unstable. One day your NFT might be worth a fortune, and the next it could be worth peanuts. This unpredictability can be nerve-racking.

Another challenge is the potential for art theft. While NFTs can help prove authenticity, they can also be used to sell stolen art. There have been cases where artists' works were tokenized and sold as NFTs without their knowledge. That's a big oops!

Lastly, the world of NFTs and digital art is still pretty new. This means there are still a lot of unknowns and potential risks. It's a bit like venturing into the wild west of the art world.

So, while NFTs can open up exciting opportunities, it's important to be aware of these challenges. As they say, knowledge is power!

If you're intrigued by the power of NFTs in digital art and want to learn more, check out Andrea Orejarena's workshop, 'Intro to NFTs.' This workshop will provide you with a solid foundation on NFTs and how they can revolutionize the world of digital art. Don't miss out on this opportunity to stay ahead of the curve in the ever-evolving art landscape.