NFTs (Non-Fungible Tokens) are changing the way artists showcase and monetise their work. By enabling creators to sell their art as unique digital assets on blockchain platforms, NFTs provide a new frontier for global exposure, increased revenue, and secure ownership. This article explores what NFTs are, how they work, the risks involved when it comes to scams and an unpredictable market, and the future of NFTs in the Arts.
NFTs are digital assets stored on a blockchain, a decentralised and transparent ledger that records transactions and ownership. Unlike cryptocurrencies, which are interchangeable, NFTs are unique and non-fungible, meaning no two are alike. This makes them perfect for representing one-of-a-kind artworks, ensuring authenticity and providing a digital certificate of ownership.
The versatility of NFTs means they are not limited to traditional digital art. They can encompass tokenised photographs, animated artworks, or even hybrid works combining music, visuals, and video. NFTs can also serve as a digital counterpart to physical artworks, expanding their appeal to collectors.
NFTs offer a host of benefits that set them apart from traditional methods of selling art. For one, they allow artists to embed smart contracts into their works, enabling residual income through royalties on resales. This means that every time your NFT changes hands on the secondary market, you can receive a percentage of the sale price—providing a reliable source of passive income.
Additionally, NFTs eliminate logistical challenges associated with physical art. Once purchased, NFTs are delivered instantly to the buyer, bypassing the need for shipping, framing, or gallery fees. This easy delivery also appeals to collectors, making the buying process more attractive.
How to Start Selling Art as NFTs?
Research and Choose the Right Blockchain
Not all blockchains are created equal, and your choice will impact fees, audience reach, and sustainability. Ethereum is the most popular blockchain for NFTs, offering broad marketplace compatibility but with higher gas fees. For more environmentally-friendly platforms consider platforms like Tezos.
Select a Marketplace That Fits Your Needs
The marketplace you choose will shape your selling experience. Platforms like OpenSea, the largest NFT marketplace, support a variety of file types and allow you to list work at fixed prices or auctions. For more curated experiences, Foundation and SuperRare cater to high-quality art, often attracting serious collectors. Meanwhile, environmentally-conscious artists may prefer Hic et Nunc, a marketplace built on the Tezos blockchain.
Each platform has its own features and fee structures. For instance, OpenSea charges a 2.5% transaction fee, while Foundation takes 15% on primary sales. Research these differences to find the best fit for your practice.
Create and Mint NFTs
The process of minting converts your digital artwork into an NFT by uploading it to the blockchain. To get started, prepare high-quality files of your work and ensure they meet the platform’s specifications. For instance, OpenSea allows file sizes up to 100MB, good for high-resolution photography or detailed digital art.
When minting, you’ll also add metadata to your NFT, including a title, description, and optional unlockable content like exclusive usage rights or behind-the-scenes. Smart contracts can also be configured to include royalties, ensuring you earn a percentage of future resales.
The Role of Smart Contracts in NFTs
Smart contracts are the backbone of NFTs. These are self-executing pieces of code embedded on the blockchain, automating key aspects of NFT transactions. They enable features like royalties, which ensure you receive a percentage of resale revenue every time your work is sold in the secondary market.
For example, if you mint an NFT with a 10% royalty, and it’s resold for $1,000, you would automatically earn $100 from that transaction. This capability ensures long-term income from your work without requiring further effort on your part.
The NFT space, while filled with exciting opportunities, is also rife with potential scams. As the popularity of NFTs grows, so does the number of individuals and groups attempting to exploit unsuspecting artists and buyers. Understanding the common scams and how to safeguard your work and earnings is important for anyone entering this evolving market.
Common Scams in the NFT Space:
Fake Marketplaces / Scammers often create websites that mimic legitimate NFT marketplaces. These fake platforms might request upfront payments or access to your digital wallet, only to steal your funds or assets.
Impersonation / Fraudsters may impersonate well-known collectors or platforms, offering to buy your NFTs or collaborate on projects in exchange for upfront fees or access to your work.
Stolen Artwork / Digital thieves frequently take publicly available art and mint it as NFTs without the creator’s consent. Once minted, they profit by selling these fraudulent NFTs.
Phishing Scams / Artists and buyers can receive emails or messages directing them to malicious links disguised as official NFT platforms. Clicking these links can compromise digital wallets and personal information.
Gas Fee Exploits / Some scams involve manipulating gas fees—the transaction costs required to mint or sell an NFT—resulting in excessively high charges.
If you suspect a scam, report it immediately to the relevant marketplace or platform. Most legitimate platforms have dedicated channels for addressing fraudulent activity. Educate yourself regularly about new scams as the NFT space evolves and remain vigilant in all transactions.
Despite these challenges, NFTs are evolving. Many believe their applications extend beyond digital art, with emerging use cases in event ticketing, gaming, and data ownership. These innovations suggest that while the speculative bubble may have burst, the core concept of digital ownership tied to blockchain technology still holds promise.
As technology advances and digital culture evolves, NFTs may yet play a meaningful role in areas like commerce, art, and digital identity. The market is far from its peak, but it may be transitioning into a new phase of more sustainable growth and innovation.