Artists are one of the groups whose income has been reduced due to the COVID-19 pandemic. Restrictions on community mobility have led to fewer exhibitions or art performances.
Non-fungible tokens (NFT) , a proof of ownership based on blockchain technology, can be a hope for artists to earn by selling their work online.
Some of NFT's artworks have been sold at high prices, such as a painting entitled Everydays by artist Beeple which sold for almost USD1 trillion at Christie's auction house
What is NFT?
In simple terms, NFT is an online certificate of ownership that can be traded, based on data units stored in a digital ledger that belongs to blockchain technology .
NFT was created as a representation of digital or non-digital assets. For example, digital artworks (pictures/photos/paintings, animations, unique collections, music, videos/animations), substitutes for physical documents (manual books, tickets, invoices, important documents, and digital signatures), and works of art. other creative.
Original works of art (in this case still in physical form) can be processed into digital first (with devices that do not reduce quality of course), then marketed in digital form. It is possible that collectors will hunt for the original work (in physical form).
The blockchain technology underlying NFT gives it the ability to certify digital assets into a unique code that cannot be duplicated, thus keeping ownership rights secure.
Access to a copy of the NTF output file is not limited to NFT buyers only. In other words anyone, not limited to buyers, can access it. If the buyer feels confident with his "shot" then the next process will go through the NFT transaction mechanism.
NFTs can be tracked on the blockchain to provide proof of ownership separate from copyright to their owners. Once sold, artists can still claim their work as copyright and can sell copies of their work as part of the royalties. So the artist can sell many copies of his work. Each copy will have its own unique code.
NFT can be designed according to specific needs, especially those that require a unique code and if the types offered are varied. For example concert tickets (VVIP, VIP, Festival). Each ticket will have a unique code and can only be owned by one person.
How NFT can be sold and used
NFT can be applied to any data as long as it is unique and requires special ownership.
Artists can upload their art online and create NFTs on sales sites or marketplaces such as OpenSea and Binance .
After selling their work as an NFT, the artist can still claim his work as copyright and can sell his work as part of the royalties.
NFT owners just set the expected royalty percentage in the " smart contract ". Some platforms, such as Metagrail and Decentraland already take advantage of this feature so that the distribution is very accurate and up to date .
The value of income from royalties will certainly be lower, but this system is attractive because it is long-term and sustainable.
Digital works in the form of NFT can be used as collateral to apply for loans/credits to financial services that provide loans/credits, as long as the work has been marketed in the marketplace .
Community members who have used NFT can join the POAP ( Proof of Attendance Protocol ) which is provided for " meet ups " or land copies of NFT owners/contributors to participate in an event that will be held. This feature is also provided so that collectors can find the collection they are looking for faster.
The NFT market regulates buying and selling transactions automatically ( autonomously ). After making the transaction, the owner only needs to check the NFT "balance" in the form of a token, on their respective digital wallets.
The balance in the form of an Ethereum-based token (NFT) can then be sold or exchanged for money. Currently one Ethereum token or often called Ether has a price of almost USD 50 million per chip .
Powered by the Ethereum blockchain
NFT is fully supported by the Ethereum blockchain technology, one of the open-source platforms for the development of the Ether or ETH currency .
There are several reasons Ethereum makes NFT something quite promising.
First, transaction history and token metadata can be verified publicly. Once a transaction is confirmed, it is nearly impossible for data to be manipulated to “steal” ownership.
NFT trading can be carried out on a P2P ( Peer-to-Peer ) basis without the need for a “third party” who can take a “commission” as compensation for involvement in the transaction process.
All Etherum products share the same back-end or network, so you can easily identify all NFT products.
Each content creator can list his/her NFT in each product offered in parallel. Each product will renew its actual ownership.
In addition, NFT also has special properties, for example each token that is minted has a unique identifier that is directly linked to an address in Ethereum. NFT also cannot be exchanged directly with other tokens at a 1:1 ratio, meaning there is more value to be added.
Each token has an owner and information that is easy to verify, the token information is contained in Ethereum and can be traded on any NFT market.
NFT sales are increasing and in the third quarter of this year sales have reached Rp 151 trillion worldwide. In the future, NFT will continue to grow and artists or content creators can immediately take advantage of this moment..
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