Art has been around since cavemen were making carvings on rocks, and the visual form of expression has seen many changes throughout the centuries with groundbreaking artists who are now household names. Now, art is taking a new direction by embracing blockchain technology – Non-Fungible Tokens (NFTs). An NFT is a digital asset that represents the real world. Each artist can have their work registered through a token, which is essentially a digital certificate stored in a database called blockchain. NFT art can be sold by artists, virtually displayed by collectors, or bought and sold by art investors.
Are NFTs profitable?
The possibility of turning art into NFTs is something that many artists are exploring as a potential way to sell their work. Digital works are not fungible, that is, no two are alike, and their exclusivity can be valuable to their creators. The NFT allows art to be sold in digital format, establishing secure ownership of an original digital asset and potentially opening access to new active communities of interested buyers. It is possible to make money selling your art to anyone who wants to be a new rightful owner, and you could receive millions for it. For example, the famous digital artist Mike Winklemann, better known as “Beeple”, who created a composite of 5,000 daily drawings to create “EVERYDAYS: The First 5000 Days”, sold his artwork for almost £50 million. These types of transactions are not limited to celebrities either, several artists, illustrators & designers who are not famous are earning money from selling NFTs.
Is NFT artwork safe?
Once an NFT is registered on the blockchain, it remains there for eternity in the name of its rightful creator or new owner. Blockchain is a shared, fixed ledger that facilitates the process of recording transactions and tracking assets across a worldwide network. Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for everyone involved.
What are the risks of NFTs?
Although NFTs are secure within blockchain, they are not immune to duplication as with all artwork. Some of the risks of NFTs are copyright infringement and trademark infringement, where it is essential to seek legal advice to protect your digital assets.
At Saracens, we have an experienced blockchain team on hand to help with any issues that could arise with your NFTs. Please call our team on 020 3588 3500 to discuss more.