How NFTs and Digital Art are fuelling Ethereum

How NFTs and Digital Art are fuelling Ethereum
An NFT of a piece of art by digital artist Beeple recently sold for $69 million at Christie’s. Beeple was immediately positioned “among the top three most valuable living artists” as the artwork was sold at a record amount for a new art form involving NFTs. Needless to say, this is big news for the crypto space and in particular Ethereum. Today we discuss how NFTs and Digital Art are fuelling Ethereum.

What are NFTs?

Non-Fungible Tokens (NFTs) are files on a blockchain that serves as proof of ownership of a unit like artwork or a collectible, for example. NFTs are not meant to serve as a means of exchange like traditional cryptocurrencies. NFTs are still categorized as crypto assets that have unique digital signatures that cannot be altered or replicated. NFTs first came into existence in 2017. Recently, NFTs have been growing in popularity in the artworld thanks to its authentication feature.

Currently, the NFT market is valued at over $250 million.

Everydays: The First 5000 Days fetches $69 million on auction

The digital artwork that was sold by Christie’s is entitled Everydays: The First 5000 Days and features a collage of evolving digital shapes and sceneries. Beeple, otherwise known as Mike Winkelmann was simply awestruck when his work sold for $69 million.

Remember this is digital art. So how would the new owner of the artwork display it? According to media reports, the anonymous owner got a digital file with the rights to present the image. Winkelmann is said to be working with the new owner to find various ways to display the artwork physically.

How NFTs and Digital Art are fuelling Ethereum

What makes Beeple’s digital artwork unique is that the digital file has a permanent link to its creator. This blockchain verification makes it easy to authenticate the item and set rules to govern future use of the item. For example, Beeple will get 10% of every sale of his artwork on the secondary market. This way, artists like Beeple will benefit from the value of their work going into the future.

Following Beeple’s example is Jack Dorsey, CEO of Square and Twitter who will be auctioning off his first tweet as an NFT. If you are interested, opening bids start at $2.5 million. Proceeds will be converted to Bitcoin and donated to charity.

NFTs are good for Ethereum as they are written on the Ethereum blockchain, which is famous for its smart contracts. With smart contracts, specific instructions can be given in the digital protocol.

Furthermore, the owner of Beeple’s artwork paid entirely in ETH Tokens. Basically, the entire NFT market is powered by Ethereum.

As NFTs continue to surge in popularity, this will mean many investors will be owning Ether to participate in the NFT market. It is easy to see a future where collectible art (digital and real-world art alike) gets an ERC20 token. With NFTs solving issues such as authenticity and ownership for the art world, the road is paved for Ethereum to grow in value.

In conclusion, it is not too late to invest in Ethereum. Open an account on South Africa’s favourite cryptocurrency exchange, AltCoinTrader today and get your hands on some Ether tokens.