“The art industry is one such industry that is subject to counterfeiting to an extent that the real artists are finding it extremely hard to survive. Once, the art industry was one of the most profitable industries and some art pieces sold for over millions of dollars. The black market and counterfeiting ruined it all. NFTs might be the Ray of Hope.”
What are NFTs?
The Non-Fungible Tokens or NFTs in the technical term is a unique and non-interchangeable unit of data that is stored on a blockchain ledger. NFT can be anything digital including art, picture, video etc. In simple terms non-fungible means something that is unique and cannot be replaced for something else. For example, a Bitcoin is fungible and one Bitcoin can be traded for another Bitcoin and the value of each Bitcoin is the same no matter who owns it or where on earth it is. Non-Fungible tokens on the other hand is a unique token that cannot be traded for anything else and no matter how many copies you make out of it, each token will be different and will have different value.
How Art Industry can Boom using NFTs
One of the major concerns lurking in the Art Industry is counterfeiting. Several cases have been recorded into the history where counterfeited art pieces or paintings have been sold and the artists have lost a huge sum of money, fame and also the ownership rights. Also, some talented artists find selling their art pieces extremely difficult, as no global marketplace is available for budding artists right now. These issues with the art industry have turned various artists away from the work they love and with the advent of blockchain technology and especially NFTs; a ray of hope can be seen.
The NFTs can help in uplifting the art industry. The NFTs are highly significant as far as art industry is concerned:
Blockchain Backed Authentication
As data entered into the blockchain cannot be removed, muted or tampered with, Art based NFTs can be easily authenticated using the blockchain ledger. The issue of authentication can be completely removed as authenticity of the art piece can be verified on the blockchain ledger.
Significantly Easy Process
Modern issues of piracy, copyright infringement and intellectual property will be made easy by creating art pieces as NFTs. This will help the artists in concentrating on their art rather than the cumbersome processes of getting their art registered and copyrighted.
The NFTs provide proof of ownership. The ownership of the Art Piece is recorded on the ledger of the blockchain and hence can be proved by the owner at any point of time and place. Tampering with the ownership rights of an NFT Art Piece is impossible.
NFT based art does not require the artist to be extremely famous so that he can sell his art. NFTs provide a global marketplace for buying and selling art and this will boost the art industry considerably.
Generates Value and Royalties
The art based NFTs can quickly enhance in value and also provide the provision of royalties. The NFTs can be created in such a way that anytime it is sold or changes ownership, some amount of royalty will be provided to the creator of the art. This can result in a considerable amount of profits.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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