NFTs will revolutionize the art world
Two months into 2022 and there already have been massive disruptions in the global arena. Hopefully, peace will prevail soon, but one thing is for sure: The complete shift to digital is coming closer with digital marketplaces as well as metaverse. Alongside the growth of crypto industry and the growth in NFTs, the 2022 arena of virtual markets, digital assets, and the way we interact with others will be radically different from the past.
As NFTs go from strength to strength, here are the key NFT insights to watch out for in 2022:
Fractionalized NFTs
The enormous rise of NFTs in the art world has inevitably sparked debate about what makes art valuable and the nature of ownership.
The appeal of digital art resurfaced when digital artist Beeple sold his collection EVERYDAYS: THE FIRST 5000 DAYS for a record-breaking US$69 million. With the use of NFTs, for the first time in history, the origin and ownership of digital data can be verified and tracked using blockchain technology.
Fractionalized NFTs is making it possible to invest in high-value assets for a fraction of the cost, so buying real-world artwork or digital art by prominent painters might be a trend in 2022.
Metaverse
2021 was a huge year for blockchain-based play-to-earn games that reward players with in-game assets. NFTs represent that gamers are actually the owners of their assets, which they may sell on NFT marketplaces for a profit.
With a gaming audience of over 300 million, it’s only a matter of time before we witness a NFT gaming revolution.
Fundraising
Blockchain technology secures NFTs and smart contract algorithms by providing a transparent, publicly traceable database that ensures funds reach selected charity organizations. In addition, crypto-based charitable payments have lower transaction fees and near-instant reimbursements as well.
In the midst of geopolitical turmoil that Ukraine has found itself in, the web3 community of over 37 artists and NFT leaders formed RELI3F, an initiative to provide global humanitarian aid. Within 30 seconds of the initial launch, the project sold out earning over a million dollars.
Conclusion
It is hard to predict the long-term effects that NFTs will cause, but for sure there will be more industries impacted by them (showbusiness, music industry, cinematography). This impact will only be possible if we use our creativity and find new ways to use this technology in efficient ways.
Do you think NFTs have any value?
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What your response be to the people, somewhat like myself, who see NFTs as a scam similar in the vein of shitcoins/alt-coins? Is there any Bitcoin equivalent for an NFT i.e is there any NFT project that has legitimacy that then gives the rest of the projects also a sense of legitimacy?
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It's nifty in theory, but when it comes to the practicality of it in the real world it completely breaks down. Cryptography is only good at managing itself, and not ancillary things (like art, or property, etc). It's all social contracts.
If I have an NFT for owning my home, and some nefarious actor takes it away from me through social engineering or hacking, do I have to hand over my keys? No, that's ludicrous. So either we need to fork the blockchain or use a system that doesn't have immutability built into it.
Copyright is a way of owning art that is legally enforceable. NFTs are a cryptographic receipt of purchase and not a contract of ownership.
Artists have come out en-masse against NFTs. I wrote about it here: https://www.indiehackers.com/post/intellectual-property-rights-are-a-social-contract-nfts-dont-change-that-3b911dd0b2
NFTs are pretty much the worst thing to happen to the art world as there's no way to police people "minting" your artwork and selling it without your consent.
No, it won't!
Nah.
I keep hearing that NFTs are allowing more artists to make money. How, exactly? Don't all the gains still continue to go to the top 1% of artists?
It seems they're expanding the market of art buyers buy tapping into people's desire to speculate, which is cool I suppose. But not necessarily sustainable.
The vast majority of painters don’t subsist on sales of paintings or even of prints from their paintings. To have succes as a traditional artist is not an easy job, and statistically speaking below 1% can make a living from selling art.
While NFTs aren't a sure road to success, it can help artists gain exposure due to all the hype.
I disagree. It does not help artists gain exposure.
There are only two types of artists who massively profit from it:
Artists with a massive following:
Those artists can convert their already large fanbase into buyers. Even if just 1% are interested in buying your NFTs and you have a 1 million following. That's about 10k potential buyers.
Artists who jumped on it early on and had the "novelty" or first-mover advantage
There are obviously exceptions from that, as there always are. Some people do really creative things with NFTs, some tech-savvy artists for example. And there are also some really good marketing geniuses out there who can generate hype even better than they can do art.
For a normal artist, I would even go as far as saying it does the opposite of what they want. Also speaking from personal experience, I noticed that once you enter the NFT game you are more concerned with how you market and promote your things. How do you get people to buy into it? How do you convince people that it has value if nobody else has bought anything from you, yet? It can be great art, but nobody cares if there are no buyers. 90% of NFT buyers care to buy something for the asset to rise in value at some point. If nobody knows the artist yet, there is no value to the art.