To put it simply, anybody can tokenise their work to sell as an NFT, but interest has been fuelled by recent headlines of multi-million-dollar sales.
The rise of crypto-rich billionaires and deep-pocketed investors play a significant role, given that owning a piece of digital art is constantly making the headlines for some astonishing price tags $ going for millions of USD $ like in the case of the artist Mike Winkelmann (aka Beeple) who sold his work ‘Everydays — The First 5000 Days’ for USD 69 million.
Everydays — The First 5000 Days — is a collage of Winkelmann’s work starting at the beginning of the project, when he was posting somewhat crude sketches. It runs through years of evolving digital shapes and sceneries up through the beginning of this year, when he was posting extremely crude political illustrations.
Also, the fact of owning NFTs is gradually becoming more mainstream culture, even a status symbol to some extent.
Take the ascent of bored ape avatars on Twitter accounts of
The Bored Ape Yacht Club:
Much like with cryptocurrencies then, the idea behind NFTs is to remove intermediaries and enhance security.
Crypto aims at eliminating banks or at least weakening their power and influence in the world of finance.
NFTs serve a similar goal but in the world of intellectual property: instead of going through agents, artists can directly connect to their audience.
One of the major reasons the NFT trend is so spectacular is because it transforms the value proposition for creators. Instead of enlisting a publisher, gallery, or record label to monetize creative works, artists can carve out a larger slice of the total pie.
This paradigm shift also breaks down the traditional stratification between consumers and creators.
The list of nonfungible tokens does not end with artworks. They can revolutionize identity management and replace physical passports that cost money to produce and pose a threat to security. Physical IDs can be lost, stolen, faked, etc., whereas digital documents will be safely stored on a blockchain.
Besides, NFTs can make investments more accessible and affordable to the general population. Dividing a digital asset among several investors is much easier than dividing a property like a house. Tokenization of the real estate industry will disrupt the investment market and put an end to the exclusivity and unattainability of real estate investments.
Let’s now look in-dept into two of the sectors that are in the process of a major transformation due to the NFTs technology being applied to their industry: the ART and MUSIC Industry.