What is an NFT?

What is an NFT?

Posted on 22 Feb 2022

If you keep up with the latest online trends, it’s almost impossible to think you haven’t heard about NFTs – or Non-Fungible Tokens. With this digital innovation having a seismic impact on the art world in recent times, there’s a good chance your favourite artists have already minted their own NFTs on the blockchain – ready for purchase!

But considering that even the most tech-savvy people have a hard time grasping NFTs, don't be ashamed if you feel a little confused about this form of digital asset. To understand what an NFT is, it helps to know what the term Non-Fungible Token means.

Fungibility is often used in the economic space to describe property that can be exchanged for something with the same value, such as currency or precious stones. However, non-fungible items have unique attributes that simply cannot be substituted – such as the qualities that make a Monet painting so valuable.

Therefore, the same rarity seen in traditional art is now possible within the digital landscape. Here, we further break down the concept of NFTs and highlight why the world’s biggest artists and auction houses are getting involved.

What uses does an NFT artwork hold?

NFTs are bought using cryptocurrencies through blockchain technology – a digital ledger that cannot be altered. This system means that ownership of your artwork can be certifiable indefinitely.

Although NFTs have become hugely popular due to the online art world, these one-of-a-kind assets also apply to music, videos or just about any other type of property.

NFTs hold value in much the same way as traditional art. Because NFTs are verifiable on the blockchain, buyers can be confident they are purchasing the real thing from an authentic source.

Meanwhile, some of the globe’s most famous artists and celebrities have released their own NFT artworks, ensuring you can own a rare piece of history that could potentially grow in value.

Yet it’s not just about buying digital assets from already well-established artists. NFTs have proven hugely successful for undiscovered creators who have gained access to an entirely new generation of buyers.

Like traditional collecting, identifying the right artists before the rest of the world catches onto their talent means you might secure a bargain and own a precious piece that develops its own legacy.

Why buy an NFT artwork over the original?

While NFTs probably won’t replace traditional art collecting, there are many reasons for purchasing digital works over a physical piece.

Some people love the idea of being able to take their art collection anywhere they go. Rather than storing your precious paintings in a high-security vault, you can display them with your phone or computer.

With NFT owners proudly showcasing their collection on platforms like Twitter and Instagram, taking an active part in this art-buying community instead of keeping your collection locked away is part of the appeal.

Although this has given rise to the idea that people can download your artwork whenever it appears online, they are simply making a copy while you still have the verifiable original.

How do you buy an NFT?

If you’re ready to buy NFTs, you first need to set up an account with a cryptocurrency exchange. Many options are available, but some of the most popular platforms include Coinbase, Binance and Crypto.com. Then, you will need to create a digital wallet to store your cryptocurrency and digital assets like NFTs, MetaMask is a popular choice.

Next, you need to purchase cryptocurrency and send to your digital wallet. Depending on the NFT marketplace you want to buy from, you might need a different currency. However, most NFTs are now bought using Ethereum (ETH).

Once this step is complete, start browsing NFT marketplaces to discover what catches your eye. Connect your digital wallet and you’re good to go! Larger platforms like OpenSea, Rarible and Axie Marketplace are some of the most recognisable.

However, more niche platforms like Foundation collaborate with selected artists to build a stronger connection to the art and community, while also allowing collectors to purchase.

Buy Stunning Artwork Today

Ready to buy beautiful art? Art to Art has a fascinating collection of paintings, prints and photography from Australia’s best established and emerging artists. Browse online or visit our Melbourne-based gallery at 130 Bulleen Road, Balwyn North. Get in touch to learn more.

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