Blockchain and NFT: Basic Concepts for Artists
If you are an artist considering offering your work as NFT, it's essential to understand the basic concepts behind the technology.
NFT's opened new opportunities for artist to sell their work digitally. But the road to success is not trivial; it is crucial to understand the basic concepts behind the technology that makes it possible.
Blockchain
A blockchain is a decentralized, distributed ledger that records transactions across many computers so that the record cannot be changed retroactively without affecting all subsequent blocks and requiring network consensus.
This enables participants to verify independently and audit transactions at a low cost. Each block contains the previous block’s cryptographic hash, a timestamp, and transaction data. A blockchain is designed to be resistant to data modification.
A blockchain can efficiently and permanently record transactions between two parties. The transactions are stored in a database, which is replicated on multiple computers, known as “nodes,” located worldwide. Because each database copy is identical, there is no single point of failure.
Gas Fee
A gas fee is a fee that miners receive in exchange for completing a transaction on the blockchain. The term “gas” refers to the unit of measurement for the amount of computational effort required to execute an Ethereum blockchain transaction or smart contract.
Every transaction and smart contract execution on the Ethereum blockchain, for instance, consumes a certain amount of gas. In this case, the gas is paid in Ether, the Ethereum blockchain’s native cryptocurrency.
The gas fee is an important feature of the Ethereum blockchain because it helps to prevent network spam and abuse. The Ethereum network can ensure that only transactions deemed valuable by the users are included in the blockchain by requiring users to pay a fee to execute transactions. The gas fee also incentivizes miners to include transactions in the blocks they mine, as they are compensated in Ether for their efforts.
The gas fee on the Ethereum blockchain can vary depending on several factors, including the complexity of the transaction or smart contract being executed and the network’s current demand for transaction processing. The gas fee may be higher during high demand as users compete to have their transactions included in the next block.
NFT
A non-fungible token (NFT) is a type of digital asset that represents ownership of a one-of-a-kind item or asset. NFTs are unique because they cannot be exchanged for other tokens or assets on a one-to-one basis. In contrast, cryptocurrencies such as Bitcoin are interchangeable and can be exchanged one-for-one for other cryptocurrencies or fiat currencies.
NFTs are used to represent a wide range of one-of-a-kind digital assets, such as artwork, collectibles, and even virtual real estate. Because NFTs are stored on a blockchain and are owned by a single person or entity, they enable creators to sell and collectors to buy unique digital items in a verifiable and secure manner.
Benefits of NFTs
Ownership: NFTs enable artists to sell ownership of their digital creations and collectors to purchase and own one-of-a-kind digital items.
Verification: Because NFTs are stored on a blockchain, they can be used to verify the asset’s authenticity and ownership. This can help to prevent counterfeiting and preserve the asset’s value.
Control: Artists can retain control over their digital creations thanks to NFTs. An artist, for example, can use an NFT to specify how their artwork can be used and displayed, as well as set royalties for future NFT sales.
Monetization: NFTs enable artists to monetize their digital creations in ways that were previously impossible. Artists can use NFTs to sell their work directly to collectors and keep a larger portion of the sale price.
Investment: NFTs can be viewed as a form of investment by collectors. Some NFTs have sold for extremely high prices, and collectors believe that specific NFTs will increase in value over time.
Conclusion
NFT is a new paradigm for artists and collectors, using top-notch technology.
It is pretty new, and with every new paradigm, there is also resistance. But like any new innovative advancement, those who embrace it early have a massive advantage. And those who deny it stay behind.
If you are an artist and want to know the basic steps to start creating and selling your NFTs, check the following article:
MΔRK MΔRROC is a photographer, artist, and NFT creator and collector. His background in IT allows him to explore the NFT and blockchain world one step further.
You can find him on Twitter at @markmarroc. Visit: markmarroc.com
