The term “crypto art” refers to the fusion of art and blockchain technology. Crypto art, as a sub-ecosystem within the world of cryptocurrencies, aims to preserve immutable versions of digital art such as music albums, paintings, awards, and various memorabilia.
Crypto art is stored on the blockchain in the form of nonfungible tokens, or NFTs, and is typically associated with a monetary value. The value of crypto art or NFTs, like traditional art forms, is heavily influenced by the creator’s credibility, the rarity of the art, and its demand in the collector’s market.
NFTs and other forms of digital art can be publicly verified for authenticity and ownership change as collectibles. This enables each piece of art to be verifiably unique and to have a monetary value. Let’s take a deeper look at the world of crypto art.
- 1 Who exactly are the crypto artists?
- 2 What allows crypto art to exist?
- 3 How much does it cost to hang the crypto art on your wall?
- 4 Weighing the risks and benefits
- 5 Is it possible to copy crypto art?
- 6 A glimpse into the future of NFTs, the metaverse, and crypto art
Who exactly are the crypto artists?
The artists who create/recreate pieces to be stored on the blockchain are the primary drivers of the crypto art landscape. Although NFTs can represent a variety of aspects of the digital world, the first step is to create digital artwork. Digital art in the form of GIF, JPEG, videos, 3D images, and similar art forms can be created using readily available software and a personal computer.
While digital art can be easily replicated and distributed via the internet, crypto artists must certify and mint a nonfungible token that is linked to the authenticity of the art created. After it has been certified, the artwork can be uploaded to various marketplaces and marketed to potential buyers.
It is important to note that crypto art is also subject to copyright laws, and artists are expected to create, mint, and sell one-of-a-kind NFTs while respecting the ownership of other works of art.
What allows crypto art to exist?
Neal Stephenson, the author of the science fiction novel Snow Crash, coined the term “metaverse” in 1992. This was the first time anyone imagined a fully interactive virtual world with human avatars and 3D digital objects.
The most popular implementation of crypto art or NFTs is Metaverse, which uses digital art to represent objects in a fully functional virtual world. Users can create, own, create, purchase, and sell virtual versions of shoes, clothes, property, and other belongings in the Metaverse.
A metaverse can also represent social communities in which people from all over the world can meet online for conferences, meetings, and parties. In a typical metaverse setting, users can interact with one another and participate in virtual reality (VR) events such as group dancing to music or yoga classes.
Metaverses have also found applications in the gaming industry, where developers are creating open-world games based on the growing digital ecosystem. Metaverses can be transformed into interactive virtual worlds explorable via user-created avatars by incorporating gamification.
Given the untapped potential of possibilities within metaverses, major social media and technology corporations are continuing to investigate various use cases aimed primarily at improving customer engagement. For example, Facebook renamed itself “Meta” to better align with the development of a metaverse. Following suit, a slew of tech behemoths are investigating metaverse capabilities in order to identify new revenue streams and customer engagement services.
Non-transferable tokens (NFT)
Crypto art is made possible by nonfungible tokens. While NFTs are similar to any other type of digital image, including JPEG, GIF, and 3D images, they contain metadata that can be used to prove their value and ownership on a public blockchain.
NFTs have evolved to represent real-world objects in metaverses and other virtual worlds as a result of the limitless possibilities provided by digitalization. Online virtual stores make it easier to buy digital clothes, shoes, real estate, and other assets and merchandise.
Furthermore, the true market value of NFTs is determined by the rarity and public demand for a specific collection or entity. Some well-known examples of NFT adoption include the release of music albums and the distribution of awards and fan tokens at various sporting events.
Artists use this emerging landscape to create art and market it to potential buyers all over the world, in addition to representing aspects of the real world. This also provides enthusiasts with the opportunity to recreate popular paintings and provide collectors with a piece of priceless history.
How much does it cost to hang the crypto art on your wall?
While crypto art can be replicated and copied by simply downloading the image or taking a screenshot, the process ignores the most important aspect of the art, namely the metadata or proof of its uniqueness.
Before it can be called NFT and have monetary value, each digital art must be assigned a unique ID. As a result, the NFTs’ unique ID is what distinguishes the arts, confirming the legitimacy of the art’s value and ownership. Depending on the service provider and the blockchain host, the cost of minting an NFT can range from as little as $1.00 to an average of $900. Unrealistic gas prices, on the other hand, can drive up NFT minting costs even further.
An NFT artwork’s unique ID can be cross-checked across a network of public blockchains. When a piece of crypto art is sold or transferred to a new owner, the metadata is timestamped on the blockchain network. An NFT can range from a few dollars to millions of dollars, depending on the piece’s rarity and collector demand.
NFT marketplaces assist the creator in converting digital art into a nonfungible token. Typically, the process entails the use of a native blockchain cryptocurrency wallet and cryptocurrency payment. Minting entails the creator paying transaction fees or gas fees to update the blockchain with metadata about the crypto art in question, which is determined by the blockchain network and the stress or current transactional capacity of the blockchain.
Weighing the risks and benefits
While rewarding, the NFT market has created new opportunities for scammers and bad actors to prey on unsuspecting investors and collectors. Investors and enthusiasts should conduct extensive research on NFTs before making any commitments or purchases, just as they would in any other ecosystem involving cryptocurrency and blockchain technology.
It is also critical for investors to confirm the metadata of NFTs on their respective blockchains. Metadata is a term used to describe additional information about a specific object or instance, which in the case of NFTs includes minting, blockchain host, ownership, and creator details. The blockchain data can be regarded as the only way to confirm the legitimacy of a crypto art offering.
As previously stated, the credibility and value of NFTs are inextricably linked to their creators and resale market demand. Having said that, even if the NFTs appear to be genuine, this does not guarantee a high (or any) resale value. The resale value of NFTs is solely determined by investor sentiment toward the artwork.
Is it possible to copy crypto art?
Contrary to popular belief, copying crypto art is technically impossible. It is not as simple as saving a copy of the image or video locally on a computing device. When a user attempts to “save” a crypto art, for example, he or she saves an identical copy of the image but fails to capture the information that makes the NFT component of any digital art.
In many cases, the artist may elect to retain copyright ownership of an NFT, allowing the artist to create and sell multiple copies of the same artwork. However, the metadata distinguishes ownership of similar-looking NFTs and ensures the creator’s credibility.
As previously stated, crypto art (like any other form of art) is subject to copyright, and falsely claiming to be the creator may result in negative consequences depending on the law of the land.
A glimpse into the future of NFTs, the metaverse, and crypto art
The people who believe in the ecosystem and the extent to which it is mainstreamed will determine the future of crypto art. Because of the participation of well-known artists, musicians, athletes, and celebrities, crypto art has fortunately attracted a large number of people eager to buy, sell, and collect art in the form of NFTs.
The crypto art ecosystem’s current use cases include art and interactive virtual worlds. NFTs are gradually infiltrating the world of virtual asset purchases, such as purchasing online versions of limited edition clothing, real estate, and so on, as their adoption grows.
While the world of cryptocurrencies, particularly crypto art, has yet to be tested to its full potential, the emerging technology has already altered the way we view valuable collectibles and art in a virtual setting. In terms of the future, crypto art is well-positioned to be used as a tool for virtual representation of every aspect of our daily lives.