THE NEW
DIGITAL WORLD
ARTIST: SARA LUDY
Breaking down the basics of NFTs, digital art, and the metaverse is the first step in understanding the vast opportunity within this space
DIGITAL ART & NFTS
What is digital art?
Digital art, once called computer art or new media art, refers to art made using software, computers, or other electronic devices. Anything produced or made on digital media, such as animations, photographs, illustrations, digital paintings, and such can be classified as digital art.
What are NFTs?
An NFT is a digital asset stored on a blockchain that represents real-world objects like art, music, in-game items and videos. NFTs give the holder ownership over the data, media, or object the token is associated with. They are commonly bought and sold on specialized online marketplaces, frequently using cryptocurrency.
What is the difference between digital art and NFTs?
Digital arts are creations of artists. These represent the work and vision of each artist. NFTs are digital certificates of authenticity, which can be used for digital art. The term NFT is widely used to refer to the artwork/collectible itself. NFTs can be purchased through NFT marketplaces and usually require cryptocurrency.
What are the top global NFT marketplaces/companies?
There are new platforms for sharing and selling artworks and collectibles. There are a number of companies and marketplaces leading the race in NFTs; these include OpenSea, LooksRare, Axie Marketplace, Larva Labs/CryptoPunks, Rarible, SuperRare, Foundation, Nifty Gateway, Theta Drop, Binance, KnownOrigin, Sotheby's Metaverse, and Christie's 3.0.
METAVERSE
How to define the metaverse?
The metaverse consists of a sense of immersion, real-time interactivity, and user agency. Metaverse can be many things: a gaming platform, a virtual retail spot, a training tool, an advertising channel, a digital classroom, or even a gateway to entirely new virtual experiences.
What are the opportunities for the metaverse?
Augmented reality, machine learning, blockchain technology, virtual reality and artificial intelligence are all included in the metaverse. Users can connect with their friends, purchase goods, work, travel, access services, and attend functions. AI technology can assist in the creation of metaverse elements along with people, buildings, landscape and other assets.
What is the value of the metaverse for the global art community?
The metaverse provides universal accessibility on newly developed, exciting platforms. This has allowed artists and collectors the freedom to share globally and connect with communities outside of traditional formats.
VALUE FOR THE GLOBAL ARTIST COMMUNITY
CREATING NFTS AND ENGAGING IN THE METAVERSE
Ownership
The provenance and price history of artwork is permanently attached to the NFT, creating a secure ownership structure.
Authentication
NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated. Therefore, authenticity is safeguarded.
Artist Royalties
Blockchain technology allows tracking and automatic payments of artist royalties on secondary NFT sales, which brings value for artists. NFTs provide a way to support digital artists, as they can set their own royalties and continue to receive financial benefits as their work is resold.
VALUE FOR THE GLOBAL ARTIST COMMUNITY
Ownership
The provenance and price history of artwork is permanently attached to the NFT, creating a secure ownership structure.
Authentication
NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated. Therefore, authenticity is safeguarded.
Artist Royalties
Blockchain technology allows tracking and automatic payments of artist royalties on secondary NFT sales, which brings value for artists. NFTs provide a way to support digital artists, as they can set their own royalties and continue to receive financial benefits as their work is resold.
INDEX
Blockchain: a digital database containing information (such as records of financial transactions) that can be simultaneously used and shared within a large decentralized, publicly accessible network. Also called “distributed ledger technology.”
Cryptoasset: Digital assets that use cryptography, peer to peer networking, and a public ledger to regulate the generation of new units, verify the transactions, and secure the transactions without the intervention of any middleman. Both NFTS and cryptocurrencies are cryptoassets. The most well-recognized cryptoasset is Bitcoin.
Cryptocurrency: any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions.
Cryptocurrency Exchange: a cryptocurrency exchange or digital currency exchange (DCE) is an exchange where we can buy or sell cryptocurrencies.
(Cryptocurrency) Wallet: the electronic interface to a user's cryptocurrency. A cryptocurrency wallet is software or hardware that enables users to store, buy, sell and trade cryptocurrency coins and tokens.
DAO (Decentralized Autonomous Organization): a community-led entity with no central authority. A DAO is fully autonomous and transparent, and is governed entirely by its individual members who collectively make critical decisions about the future of the project.
Decentralized (Peer-to-Peer) Exchange: a decentralized exchange (or DEX) is a peer-to-peer (P2P) marketplace where transactions occur directly between crypto traders.
DeFi (decentralized finance): is an umbrella term for peer-to-peer financial services on public blockchains, primarily Ethereum.
Ether or ETH: the transactional token (or cryptocurrency) that facilitates operations on the Ethereum network.
Ethereum: Ethereum is a blockchain platform with its own digital currency/cryptocurrency, called “ether” or “ETH”, and its own programming language, called Solidity. Most platforms that sell NFTs are built on the Ethereum blockchain. Due to this, most NFTs are bought with ether.
Fiat (money): is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.
Hardware wallet: a physical device for cryptocurrencies that stores private keys which enables you to securely store your crypto assets.
Hosted wallet: a digital wallet in which your private keys are stored. In exchange, the wallet takes care of the backup and security of your funds.
Minting (an NFT): publishing a unique digital asset on a blockchain so that it can be bought, sold, and traded.
NFT (non-fungible token): a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership (as of a specific digital asset and specific rights relating to it).
Non-custodial wallet: a decentralized type of wallet, where the customer owns its private keys. The user gets a file with private keys and needs to write down a mnemonic phrase with which they will be able to restore their funds.
Smart contract: a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.
Token: an electronic proof of asset ownership. These are typically split into two types. Fungible tokens like Bitcoin are identical, exchangeable tokens; non-fungible tokens (NFTs) are unique and cannot be reproduced.
Web3: refers to a decentralized online ecosystem based on the blockchain.