Do NFTs and the art world have a collective future?
The digital landscape is changing and the new word NFT is taking the top stage. “NFT” is the talk of the global town, especially people with a digital world orientation promoting it. So what is this NFT and what is fueling its growth?. Thanks to an artist Beeple who sold his NFT for 69 million dollars. This act created encouragement in many digital artists and they came up with designs, which impacted the world. Art is the same but the way of presentation is changing.
There are hopeful factors that indicate a better future for NFT that we will discuss further but there are concerned questions that need answers. Will NFt has the potential to shift the artwork core from canvas reality to digital medium? Will it be attractive enough for art collectors to bet on it? Will it create a sensation among art enthusiasts? Let’s find out
What do we have for us in NFTs?
For laymen, NFT is a nonfungible token that is used to certify the ownership of digital assets. Its association with art makes the latter prove its ownership and it is handled by the decentralized blockchain system which itself is a newly emerged entity in the digital world. NFT is making traction because it is immune to tempering. For the art world, it is more advantageous as it brings proof of ownership with it and also it fetched large sums of money. For example, Jack Dorsey’s first tweet sold for 2.9 million dollars.
Fetching a large sum of money for art may be the reason for anyone being on a blockchain platform and making an NFT. And on top of that, it offers uniqueness by giving authentic proof of ownership to the owner. Only one person can be the owner of an NFT. This factor makes it lucrative for collectors as it creates scarcity in artwork which increases the value.
Selling the artwork takes a lot of time as approval is needed from a central authority. However, in the case of the NFT blockchain system serves the whole process which is decentralized, and the approval from anyone is not needed its just the buyer and the seller. In addition to that NFT has cryptographic security that assures the protection of the digital assets.NFT is bringing many value propositions to the art world but how the model of artworld may be changed in the future?
Is it a feasible idea?
Beeple created a wave when his artwork is sold that brought many art makers and collectors to the table of digital decentralization. That phenomenon then garnered momentum and revenues generated in buying and sales of NFT amounted to 3.5 billion dollars in the initial three quarters of 2021. Despite the ups and downs in the market, NFT stood steady, introduced new horizons, and challenged the conventional norms.
Do existing conventional art-businesses are under any threat?
Art galleries had been at the forefront of art selling and buying. This has been the norm for many decades but now this idea is gradually replaced by a middleman-less concept called a blockchain. Many artists do not want to present their NFTs in art galleries. Because of that many art galleries are now stepping into the territory and engaging with NFT platforms to reach new buyers. So Nonfungible token is beneficial for artists who want recognition and also for art galleries who want to serve many potential buyers.
Another thing that may tell the future of NFT is to understand how it is making a new generation of artists that are accepting new trends. As of now new younger talents have generated large sums of money for themselves from NFTs.like FEWOCiOUS have sold NFT for 2.16 million dollars who just turned 18. Apart from this we also need to study how new collectors are working and what factors compel them to buy an NFT art. Generally, it is difficult to point out what drives them to buy on the NFT platform. The majority of people buy NFT in hope of getting more price when they will sell it again. This Hope is a major force that has created a whole new economy around NFTs that will persist in the coming future even though the question of the feasibility is still hanging around.
The future is bright as NFT offers more to buyers and sellers and also it is enabling an environment of protection for digital assets. But some obstacles must be addressed before jumping on the bandwagon. NFT nurtures on the philosophy of decentralization whose picture may be looking beautiful but it requires the collective effort of the network. Environmental costs of running a blockchain network are also high as servers require more electrical power which raises the concern that is it suitable for the planet whose becoming more energy-deficient?
Conclusion
An overall future picture of NFT is promising as it created a verifiable proof of ownership. Digital art is becoming more secure and the fraud environment is minimal. Along with that, favorable incentives are also being enjoyed by artists, for example, they don’t have to rely on galleries to showcase their work instead they can find prospects from the world of the internet. similarly, collectors can get verifiable proof of ownership and need not worry about the authenticity of the art. But environmental risks are also a major concern for the world population and reliance on clean energy may change all that. NFT is in continuous change and we hope that in the future we see more advancement in this area.
