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Is The Age of Crypto Art Beginning or is it a bubble? What is NFT?

Is The Age of Crypto Art Beginning or is it a bubble? What is NFT?

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However, the winner of the auction did not own a statue or a painting, but a unique digital coin known as the NFT.

NFTs have become the most popular crypto currency phenomenon of recent times. The collage paintings of the digital artist nicknamed Beeple, which was sold for $ 69.3 million by Christie’s auction house in the USA, attracted the attention of the whole world to NFTs.

In this era when Bitcoin emerged as a digital alternative to traditional currencies, NFTs are now showing up as a digital counterpart to collectibles.

In addition to those who see the future in NFTs, which are starting to find buyers with higher prices day by day, the number of people who are skeptical thinking that it is a bubble that will burst in a short time is not few.

What is NFT?

In the simplest terms, NFTs mean digital certificates that turn digital artworks and collectibles into registrable and salable assets.

English name (N) on- (F) ungible (T) okens or short NFT's "Non-Tradable Tokens"

NFTs use blockchain technology, which is a database that supports cryptocurrencies such as bitcoin and ethereum.

[Photo: Reuters]

Unlike NFTs, cryptocurrencies such as Bitcoin or Ethereum can be exchanged with each other just like the banknotes we use in our daily lives.

For example, even if we replace a $ 100 bill with two $ 50 bills, the value will not change. In this respect, crypto coins stand out as "tradable" assets in the economy, just like banknotes.

However, some entities are unique because of their unique qualities, and these properties make them "non-tradable", in other words, unchangeable entities.

One and unique

A unique architectural masterpiece such as the Selimiye Mosque, one of the masterpieces of Mimar Sinan, or a one-of-a-kind painting such as Leonardo da Vinci's famous Mona Lisa, is unique and cannot be exchanged or changed. You can take a photo of the Mona Lisa painting or buy a hard copy poster, but this work will always have only one original in the world.

NFTs are likewise unique and unique, they cannot be exchanged exactly, that is, no NFT in the world can be exactly the same with another.

These digital tokens can also be thought of as certificates for virtual assets that register ownership of the people who bought them.

What makes NFTs valuable?

Traditional artworks such as paintings or sculptures are valuable because they are unique and the only one of their kind. Today, besides concrete designs such as traditional oil paintings or sculpture, digital art works prepared with computers and tablets have gained importance.

These works, which are stored in digital files on computers or cloud storage areas, can be easily and infinitely reproduced, printed or shared on social media platforms.

For example, millions of people learned that Beeple's digital artwork was sold at auction for $ 69.3 million, and this image has been copied and reproduced countless times.

[Everydays: The First 5000 Days, which sold for $ 69.3 million at auction / Photo: Reuters]

So, what is the privilege of having NFT and the value it offers to its buyer by paying such high prices?

The person who buys this work as NFT receives a "digital coin" certifying that the work is "original". In this way, the unique and original work will forever belong only to the buyer.

The Mona Lisa painting has millions of copies online or in print, but the original will always have one owner. The same is true for digital artworks that have been converted to NFT.

Thanks to NFTs, digital artworks now guarantee ownership of their originals and turn them into tradable digital certificates.

A share can also be taken from the next sale

Although a single person owns the original of NFT, in many sales, the artist continues to own the copyrights of the work, thus also holding the rights to sell copies of it. NFTs can also contain smart contracts. They may contain rights to an artist, for example, to receive a share from any future sale.

Just like crypto money, the information of the person who owns it in NFTs is kept in a shared main database called blockchain. Records are not fraudulent, because exact copies of the main database are stored on tens of thousands more computers around the world.

How much are NFTs sold for?

NFTs are not so new to enter our lives. In a digital trading game called CryptoKitties played on the crypto money platform Ethereum, people were the first NFT by buying and selling virtual cats stored on the blockchain and none of which are identical.

[Image: Cryptokitties.co]

In fact, theoretically for a long time almost everyone could sell their own digital work as NFT. However, as a result of the news of millions of dollars worth of NFT sales reflected in the headlines recently, this issue has become the center of attention of the masses.

A flying animated pop-art cat image file was sold for more than $ 500,000 on January 19

[Image: Foundation.app]

Just a few weeks later, musician Grimes sold a portion of his digital art for over $ 6 million.

Not only artworks, but Twitter's founder Jack Dorsey introduced his first Tweet as NFT and received over $ 2.5 million in the auction.

Jack Dorsey's first tweet sold as cryptocurrency.

Christie’s auction house broke a record in this area by selling digital artist Beeple’s NFT for $ 69.3 million.

How to buy NFTs?

Basically any digital picture can be purchased as NFT. However, there are some tricks you should pay attention to, especially if you are new to this business. First of all, you must decide which marketplace to buy NFTs from, know what type of digital wallet you will store and which type of cryptocurrency to complete your purchase.

The best known NFT marketplaces are OpenSea, Mintable, Nifty Gateway and Rarible platforms. However, you should be cautious about the expenses you will pay in your shopping.

Some marketplaces charge an expense called "gasoline" to provide the energy needed to complete the payment transaction on the blockchain. In addition, the costs that will occur when converting your money to Ethereum (the most used currency for NFTs) and transaction closing costs will also be added to the cost.

[Image: Opensea.io]

How are NFTs sold?

NFTs are put up for sale in marketplaces and the procedures differ from platform to platform. Basically, you upload your digital content to the marketplace and then you convert your content to NFT by following the commands on the screen. You will also be asked to provide an introductory text for your content, and a suggested price. Most of the NFTs are purchased with ethereum and some of them are purchased with ERC-20 symbols such as WAX and Flow.

How to create NFT?

Anyone can create NFT. All you need is a digital wallet, a small amount of ethereum, and the ability to upload your content and connect to an NFT marketplace where you can turn it into NFT crypto art.

Is the age of crypto art beginning or is it a bubble?

Even Beeple - real name Mike Winkelmann - made a statement just a day before his record-breaking sale said, "To be honest, I personally believe it will be a bubble, and we are in this bubble right now."

Not just Beeple, there are many who are skeptical about the issue and see NFT buyers and sellers as crypto-scams.

On the other hand, Charles Alsopp, the former auctioneer of Christie’s auction house, who signed the record sale, described the purchasers as "idiots" and the NFTs as "meaningless".

It goes without saying that we don't see any news about NFT on the internet. However, like every emerging technology, NFTs also have negative aspects. While digital artists producing NFTs and collectors who buy them describe these negative aspects as growth and development pains, critical circles view it as a bubble that will burst in the short term.

Assigning value only to objects that exist in the virtual world, NFTs turn into a rare source of income for digital artists. Nigerian digital artist Osinachi, who sells the Kobe Bryant portrait he made using Microsoft Word for $ 28,000, says, “Before that, I was hard to afford to put food on my table, until digital art changed that.

However, it cannot be said that the situation for every artist is a rose garden without thorns. Another digital designer Corbin Rainbolt noticed that the work he shared on Twitter was downloaded and sold as NFT without his permission. He is concerned that he has blocked NFT accounts he can find, but there are other NFT accounts he cannot follow.

Many digital artists are considering deleting their content from Twitter or other social media platforms. The reason for this is the possibility of any other person making these contents NFT even though they did not create these contents themselves and sell them as if they were theirs.

The NFT licensing system proceeds by assuming that the uploader is the original creator of this content. In blockchain technologies, the fact that the users are mostly anonymous accounts makes it almost impossible to identify the uploaders as real persons. For this reason, studies are carried out to determine that the uploaded content has been uploaded by its real designer.

OpenSea and Nifty Gateway marketplaces have added the ability to report suspicious NFTs to their terms of use. However, it is still very difficult for an artist to prove that his design is his own, due to the lack of official registration and the authority gaps in blockchain technology, which is decentralized in nature.

[Image: Niftygateway.com]

Another threat to the NFT world is the possibility of NFTs being stolen from marketplaces. Last month, many users on Twitter announced that their NFTs were stolen as a result of the Nifty Gateway site being hacked by hackers. The lack of central authority also closes the legal remedies that people whose designs have been stolen can apply. For this reason, there is almost no legal way for a designer or collector whose artwork is stolen.

Another criticism of cryptocurrencies and therefore NFTs is their negative impact on the environment and nature. The mining and trading of crypto money brings along a huge amount of computer processors and graphics processing power to be consumed and indirectly, this energy is harming the nature of our world.

By the way, the first of my symbolic work series ( NFT's), which I recorded in memory of being the first, is still on sale.

https://mintable.app/art/item/Whos-Looking-at-Whom--Whos-Looking-at-Whom--is-a-digitally-produced-nude-painting-Digi-collage/30uiigsSUtGpO-l

https://mintable.app/art/item/A-Mans-Scream-Both-Digital-NFT-and-Original-Oil-Painting-A-Mans-Scream-Both-Digital-NFT-and-Original-Oil-Painting/yFvXf9c-sOyqgn2

I am selling my oil painting "A Man's Scream" as NFT. I will also send the original of the painting by cargo to the buyer who purchases it as NFT.

Sales revenue of this oil painting artwork will be spent for the education of refugee children who fled to Turkey from their own country because of the war.

Features of my table:

Oil painting on canvas,

No frame,

Black and metallic copper two-color stain work,

Dimensions: 70 x 51 cm.