Here is how NFTs can become a new source of revenue for video creators and aspiring digital artists.
NFTs or non-fungible tokens are the new hot topic in the creative community in 2021. Digital artwork selling for millions of dollars is a new reality as crypto art is a new lucrative market. Is crypto art and NFTs a new trend? Let’s explore it here.
What are NFTs?
We need to start the explanation by talking about blockchain first, as it is the technology that powers crypto art. So what is it?
In simple terms, Blockchain is a peer-to-peer online system that uses public electronic ledgers as proof of transactions. Blockchain creates unchangeable records of transactions, which are time-stamped and linked to each previous transaction. Blockchain is the base for cryptocurrencies and crypto art. Bitcoin, Litecoin, or Ether use ledgers to prove the ownership of the “coins”.
Unlike cryptocurrencies, which are identical and worth the same, NFTs are unique. NFTs are attached to a piece of digital asset like video or audio files. In other words, an NFT minted for a digital file makes this file unique (one in its kind).
Let’s take a look at the NFT sites. If you are a creator, you may already have tons of digital artwork ready for sale. What’s next?
Don’t rush to submit your art too fast. Learn how Ethereum works first. Do some research about digital wallets used on crypto art platforms.
Getting your artwork on crypto art platforms requires some effort. You want your art to get to the premium platforms, but that’s not easy.
The popular crypto art websites require an application process. For example, PRØHBTD, a prolific crypto artist, mentions that SuperRare only allows 50-70 new artists per month whereas thousands of artists apply each month. Here are more premium crypto art websites: Nifty Gateway, MakersPlace, Known Origin.
If it takes time and effort to get on to the above marketplaces, here are more options.
Foundation is a new website, which is invite-only as of 2021. Aspiring artists can also try Rarible or OpenSea as these sites are free platforms.
Owners of NFTs
Because it is on the Blockchain, the way crypto art is sold is kind of unique. Here we need to distinguish between the NFT (token) and the actual file. When a transaction happens, it is verified on the blockchain. After the verification, the buyer owns the NFT, but the buyer does not own the asset and the copyright for the asset. The buyer owns the access to the NFT of the asset.
The NFT can be sold and bought. But the original creator of the NFT is permanent. The original creator continues receiving royalties from each transaction. The more the asset sells, the more revenue it brings to the creator.
How much does it cost?
Before making any money (crypto money), a creator will face certain charges. The NFT platforms charge gas fees. These are payments for the computing needed to process and validate transactions on the blockchain. The NFT platforms also charge for minting tokens. There is usually a fee for buying and selling (a small percentage of the transaction amount).
If you are interested in selling your digital art, do some research about conversion fees between different crypto currencies used on the NFT platforms. These are the other hidden costs that can add up to the creator’s charges.
Can video creators monetize their art with NFTs?
If you are a creative type, who enjoys experimenting with 3D software like Blender or Cinema 4D, selling crypto art can be an interesting journey. Keep in mind that the market is getting crowded, so you need to move fast. But take time to do research and learn more about blockchain.
Images courtesy of PRØHBTD. PROHBTD considers crypto art as liberation, democratizing access and tagging blocks on the chain. Check their digital art portfolio at https://superrare.co/prohbtd.