Simplified, NFTs Simplified

— By Aghny Jreige

Everything in the real world is being recreated in the virtual world, the Metaverse.
The Metaverse is a constant digital universe that reflects our world, but it is becoming as various and inspiring as the natural world.
This means you can do everything you do in the real world in the virtual world, and even more.
The virtual world is the internet, the connections we’re doing with people that are much more advanced than we are. You can use Virtual Reality (VR), Augmented Reality (AR), Artificial Intelligence (AI), and other technologies there.

Walk with me, let’s say you visit a gallery of art, you then buy an original/authentic “Mona Lisa” or a “Starry Night” of any generation, you take it home with you, hang it over your favorite furniture on your preferred wall, enjoy it, show it to your people, and even invest in it.
The Artwork becomes part of your life and marks a dot on your timeline. Nowadays, we have the same experience with virtual and immersive installations for digital art.

You definitely heard about the 2021 Beeple auction sale that sold a purely digital artwork for 69 million dollars in cryptocurrency.
The revolutionary instrument that is allowed for a digital file to be sold as a unique artwork for a huge amount of money is the same tool that will allow digital artists to make living as freelance creators.

There is a big shift happening that is turning the world of content creation and its financial rewards upside down. The internet is no longer a huge copying machine of intermediate people earning more than creators themselves, and artists not receiving royalties. Those times are over a long time ago.

This new tool that shows clear proof of credibility, ownership, and authentication of music, images, videos, texts, and more is called an NFT — non-fungible token.
It’s allowing everyone to own their data, starting with art, and hopefully revolutionize how value is created online and how digital things are made legal.

A wise man once told me “You can’t ban decentralized shit”, let me explain:

So the long-lasting question is, what is an NFT? Simply, it is an eternal tracking device that proves ownership of a digital file.
“An NFT is a cryptographic token connected to a digital asset to preserve ownership rights in the metaverse”.

Non-fungible means non-exchangeable. Most things in the real world are non-fungible because most of them are unique and can’t be traded easily. Money, on the other hand, is fungible; meaning 1$ equals another 1$ — and 1 Ethereum equals another 1 Ethereum.

The underlying decentralized technology that authorizes digital currencies like Ethereum and Bitcoin is blockchain.
The blockchain prevents digital assets from being copied or hacked and removes the need for a centralized authority like a bank to validate transactions.

Just like Bitcoin, the record of ownership of an NFT stays in a public database on the internet that is maintained by a huge number of computers to track all content and transactions.

Decentralized business models should give financial power back to the creators and reduce the power of the broker, the middleman, and social media platforms.

Artists are making NFTs to live on, from digital fashion, music records, basketball historical replays, and more. Moreover, the use of augmented and virtual reality fashion is becoming mainstream, but because NFTs as art and collectibles are so new, the predictions are too uneasy for anyone to make. But it is a sign that big names like Mark Cuban and Snoop Dogg are investing on high levels.

This is the new frontier for artists and their fans. And just like in the real world, an artist can sell a one-of-a-kind piece, make limited editions to control scarcity, and show it in art galleries and marketplaces.
But with NFTs, you can also sell directly to your buyer without an intermediary, collect royalties on all future resales, expand your audience to the entire Internet, show in virtual galleries and virtual worlds, and sell 3D objects and clothes to virtual humans.

Okay, so how does this work, and how do you get involved as an artist?

Your artwork is a digital file, to protect this file and capture the value of your work and permanency, you go to a digital goods marketplace and “mint” it. This means you register your work as a token, for a fee on the blockchain.
It will contain a signature, time stamp, and any rules around its resale.

Once you’ve minted your work and you want to sell it, you connect with your community and let them know that your NFT has “dropped”, which means it is for sale.

It is important to know that all the same rules that are for good art and business apply in the virtual world. A strong connection to your followers, an authentic or compelling story, and consistent output and work ethic.

So, who will buy your art or how do you get involved as a collector?

Buyers go to the same marketplaces that artists use. There you look for art that you appreciate, and artists you want a direct connection with.
Some people invest because the artwork resonates with them, or they recognize great talent, or they see a potential for that artist to play a significant part in history.
Once purchased directly from the artist, you store your NFTs in your digital wallet. From there, you can show them on screens and online marketplaces, or in galleries.

And with NFTs, a buyer knows their art is fair trade, transactions are transparent, and the ecosystem is equitable.

The metaverse is a place where we will spend more and more of our lives. Who builds it, who owns it, and how it is built, will determine what this world becomes.
But just like the real world, the metaverse is very complex, and there are many problems yet to be solved, and that is where you come in. You are the future, a digital citizen whose responsibility it is to be a good steward to the metaverse, making sure that it is diverse, fair, accessible, and sustainable.

This is just the beginning of the decentralized movement. NFTs will revolutionize most online industries, but it is starting with the creative economy. While nothing in this blog is financial advice, it is definitely educational encouragement, and why not start learning through art?

Jump in on the blockchain train!