The world of Non-Fungible Tokens, or NFTs, can be an intimidating space filled with buzzwords and snakes. DeliciousNFT.com exists to slice through all that clatter and serve it to you straight—so get a taste. Our ultimate NFT art guide will take all the mystery out of NFT art. It provides an easy-to-understand overview of the technology, the terminology and the promise behind it. We’ll address the most misunderstood and misinformed arguments and fears directly. This knowledge will then prepare you to confidently decide if you want to join the NFT art world or not! Enough with the window dressing. Get ready to sink your teeth into the tasty tidbits.
Overview of NFT Art
NFTs are essentially digital collectibles. Cryptocurrencies, bitcoin in particular, are extremely fungible. Each bitcoin is the same as all others. In stark contrast, NFTs are unique digital assets, each one completely different from another. Think of it like this: a dollar bill is fungible. You can swap it with another dollar bill and it's still worth the same. An artwork, such as the Mona Lisa, is genuinely unique. Just as there could never be a true Mona Lisa in digital form, there is special value to the original.
Through blockchain technology NFTs provide a way to verify ownership and provenance. When you buy an NFT, that transaction is permanently etched into a decentralized blockchain. Since the ledger is impossible to change, it is almost impossible to fake or duplicate your NFT. This novel attribute is the bedrock of the NFT art market. NFTs really started to break into the mainstream in 2017. That’s when the earliest NFT collections were made public and minted on the Ethereum blockchain.
The appeal of NFT art lies in several factors: scarcity, collectibility, and the potential for investment. Through these artists, programmers, and anthropologists artists can produce limited-edition digital artworks, and collectors can truly own a piece of internet history. So, contrary to museum-quality works, the value of an NFT is based entirely on what other people are willing to pay for it.
Understanding Digital Collectibles
At their core, NFTs are digital assets that use blockchain technology to prove ownership of a unique digital item. This digital asset could be a work of digital art, or it could be a virtual trading card. It could be a wave form of a music file, or a single tweet! The appeal is that just like a physical work of art, each NFT is unique, and its ownership is immutably verified on a blockchain.
One of the earliest and most influential NFT projects, CryptoPunks by Larva Labs launched in 2017. This art project is made up of 10,000 totally unique, pixelated PFPs (profile pictures), each with their own traits and rarity levels. Larva Labs, the creators of CryptoPunks, boast up front with a killer tagline— “10,000 unique collectible characters. Each character includes verifiable proof of ownership, permanently stored and encrypted by the Ethereum blockchain. These punks have since moved on to become some of the most coveted digital collectibles, with individual punks going for as much as millions of dollars.
CryptoPunks had proven the value of NFTs, used to create digital scarcity and generate value. This rarity is significant because this is one of the key defining aspects of the CryptoPunks project, which pushes the market value. This visionary project opened the door for so many other NFT art projects, from PFP collections to generative art.
The Rise of Profile Picture (PFP) Projects
After the success of CryptoPunks, profile picture (PFP) projects exploded in popularity through 2021. These projects typically feature a collection of characters with varying traits, designed to be used as avatars on social media platforms.
Projects like Bored Ape Yacht Club, Gutter Cat Gang, and Cool Cats found cult followings, with owners forming online communities and identifying with their chosen avatars. Alongside the community inspired by it, the Bored Ape Yacht Club has become a cultural phenomenon. Celebrities and influencers are in a hurry to make Apes their new online avatars. The worth of these PFPs shot up, to the point where many were trading for hundreds of thousands or even millions of dollars. As the buzz around NFTs has built, speculation has driven up their value, with many projects selling for millions of dollars, such as the Bored Ape Kennel Club.
These PFP projects proved out the power of NFTs to foster expansive digital identity and community. Owning a certain PFP became a status symbol, the ultimate flex, a way to signal membership in an exclusive online club.
Generative Art and the ArtBlocks Platform
A second major trend on the NFT art scene is generative art. Generative Art started in the 1960s. Generative art traditionally speaks to works of art that have been created in whole or in part by systems that are considered autonomous, like a computer algorithm. Artists write complex algorithms that produce extremely specific visual outputs, leading to potentially millions of unique artworks produced on demand.
Today, ArtBlocks is home to the most successful generative artists. The market supports this, as evidenced by the fantastic sales of $838 million on all of its projects in only 10 months. The demand for the most successful generative art ArtBlocks project has accelerated exponentially in recent months. Today, even the best-in-class projects are commanding unprecedented premiums. ArtBlocks has become a hub for generative art, showcasing the work of talented artists and attracting collectors who appreciate the beauty and complexity of algorithmic art.
Trading and Storing NFT Art
Now that you have a better idea of what NFTs are, we can discuss how they’re bought and sold, as well as where they’re kept. Purchasing, trading, and otherwise interacting with NFTs necessitates using specialized marketplaces and tools.
You can buy and sell NFTs on platforms widely used, including OpenSea, Rarible, SuperRare, and Binance. In August 2021, OpenSea handled more than $3.4 billion in trading volume. These marketplaces have become vital intermediaries, providing valuable services that connect buyers to sellers, increase competition, and streamline transactions. Each platform has key features and different fee schedules. Understanding them is important to selecting the option that will work best for your unique situation.
NFT wallets are like regular wallets, but instead of money, you store, manage, and transfer your digital collectibles (NFTs) in them. These wallets, which include MetaMask, Trust Wallet, and Ledger Live, manage multiple types of digital assets. These wallets provide you the safest ways to store your NFTs and connect with NFT marketplaces.
NFT Marketplaces: Where to Buy and Sell
NFT marketplaces are online platforms that act as intermediaries to help you buy, sell, and discover unique NFTs. Some of the most popular marketplaces include:
- OpenSea: The largest NFT marketplace, offering a wide variety of NFTs, from art and collectibles to virtual land and domain names.
- Rarible: A community-governed marketplace that focuses on art and collectibles, with a strong emphasis on creator empowerment.
- SuperRare: A curated marketplace for high-quality digital art, featuring a selection of established and emerging artists.
- Binance NFT: An NFT marketplace integrated with the Binance cryptocurrency exchange, offering a wide range of NFTs and exclusive drops.
When deciding on an NFT marketplace, consider what type of NFTs you want. Consider the fees they charge, their UI/UX, and security protocols.
NFT Wallets: Your Digital Vault
A digital wallet specifically designed for holding, managing and transferring your NFTs. Consider it your collectibles’ digital safe deposit box.
Here are some aspects to keep in mind when selecting an NFT wallet such as security features, user experience, and efficiency of the blockchain network compatibility. Many NFT wallets provide users with extra utilities like staking, lending or yield farming. It’s important to do your research and calculate the fees you will be incurring when utilizing an NFT wallet.
The NFT art market has its fair share of critics and skeptics. So let’s take a moment to clear the air on three major misconceptions and concerns about NFTs.
- MetaMask: A browser extension and mobile app that allows you to interact with decentralized applications (dApps) and NFT marketplaces.
- Trust Wallet: A mobile wallet that supports a wide range of cryptocurrencies and NFTs.
- Ledger Live: A hardware wallet that provides secure offline storage for your NFTs.
Common Misconceptions and Concerns
The first misunderstanding is thinking that NFTs are JPEGs that people can right-click and save. To be fair, anyone can right-click and save an image of an NFT, but that’s not the point. The value of any NFT is in its confirmed unique ownership, often encoded on the blockchain.
One major point of criticism is the environmental cost of NFTs. This is particularly the case for NFTs on the Ethereum blockchain, which currently uses a proof-of-work consensus mechanism that is highly energy intensive. To note, Ethereum is in the process of moving to a proof-of-stake system, which will drastically lessen its environmental impact.
Scams, fraud NFT speculation is rife with scams and fraud. As with any online purchase it’s key to educate yourself and only purchase NFTs from trusted creators. Avoid projects promising high and/or guaranteed returns, projects with hard-sell marketing approaches.
DeliciousNFT.com has a mission to deliver you the freshest and smartest information available about the emerging NFT art market. We go beyond the bells and whistles to bring you true, transformative insights. Look forward to no-BS deep-dive dApp reviews, fiery global regulatory roundups on blockchain tech and crypto, coverage of the craziest NFT drops and Most xTreme Web3 stuff! The article plans to provide more educational content, including "NFTs 201," which will focus on project evaluation and data analysis.
DeliciousNFT.com: Your Guide to the NFT Universe
NFT sales surpassed $40bn last year, and the total 2022 has already far surpassed that at over $42bn. So, no matter if you’re an experienced collector or NFT newcomer, DeliciousNFT.com is your reliable companion to the decentralized universe.
Stay tuned for our upcoming "NFTs 201" guide, which will focus on project evaluation and data analysis, helping you make informed investment decisions.
Familiarize yourself with the tech, jargon, and potential pitfalls and benefits of NFT art. Having this understanding will allow you to tread boldly into this awesome new realm! Just don’t forget to do your homework, keep an eye on emerging trends, and proceed cautiously into this brave new market. Get the proper education and develop an attitude of optimism. You just might find rare, incredibly fulfilling digital collectibles that will resonate with your interests and passions.
By understanding the technology, terminology, and potential risks and rewards, you can confidently explore the exciting world of NFT art. Remember to do your research, stay informed, and approach the market with caution. With the right knowledge and mindset, you can discover unique and valuable digital collectibles that resonate with your interests and passions.
