What is the topic of NFT art now? Detailed explanation of the mechanism, how to make it, and how to sell and purchase it [Digital Art]
In March 2021, one digital art was sold at an overseas auction site for “about 75milion USD .
This digital art is said to be “NFT art” using Crypto currency technology, and many people have come to see the word “NFT art” in the wake of this news.
This time, I would like to introduce “NFT Art”, which has just been born.What you can see from this article
- NFT art is a combination of digital art and cryptocurrency blockchain technology.
- NFT art can prove its uniqueness and value digital art by utilizing blockchain technology
- NFT art is created in various forms other than pictures and music
- The NFT art market has room for expansion due to the size of the digital art market.
- It is highly possible that the gas cost when exhibiting NFT art will increase in the future.
NFT Art adds many functions to digital art by utilizing the blockchain technology of Crypto currency .
It is also very attractive as an investment field, and many investors as well as artists trade for speculative purposes .
table of contents
- What is NFT Art?
- Features and mechanism of NFT art
- Can prove uniqueness
- Cannot be tampered with
- Various information can be recorded
- How to sell and sell NFT art
- How to make NFT art
- How to sell NFT art
- How to buy / purchase NFT art
- Featured news about NFT art
- Naoki Saito’s NFT
- NFT at the museum
- SBI Art Collection
- An example of NFT art bought and sold at a high price
- Digital art collage wins auction for about 7.5 million USD
- Virtual sneakers
- Dogeocin
- Current challenges in NFT art
- Environment issues
- Fee will be charged at the time of contract
- Legal development is not catching up
- Future potential and future prospects of NFT art
- NFT Art Charity Project
- Expanding the market for trading NFT art
- Increasing usage of NFT
- Everything could be an NFT
- Reviews and reputation about NFT art
- Q & A about NFT art
- Is there an age limit for creating and trading NFT art?
- Is there an initial cost to create and trade NFT art?
- Do I have to pay taxes when I trade NFT art?
- Summary of NFT art
What is NFT Art?
NFT art is a work that combines digital art and ” NFT ” .
NFT is an abbreviation of “Non-Fungible Token”, and it is a mechanism that cannot be tampered with by utilizing blockchain technology for data management .
The market size has expanded rapidly since the beginning of 2021, and the market prices of NFT-related stocks such as chillies and sandcoins are also skyrocketing.
In the next section, we’ll talk about why NFT art is so popular.
Features and mechanism of NFT art
Currently, the market is rapidly expanding NFT art.
Here, I will briefly explain the features of the popular NFT art.Features of NFT art
- Can prove uniqueness
- Cannot be tampered with
- Can record the creator / owner of the data
NFT art can be equipped with many functions by blockchain technology.
Can prove uniqueness
First of all, NFTs basically use the Ethereum blockchain .
Then, by utilizing the mechanism called “ERC-721” of the Ethereum blockchain, an identifiable code is given to each digital data .
As a result, each NFT can now be identified as unique.
This feature allows NFT art to have value as a work for the first time.
Cannot be tampered with
Blockchain including Ethereum records the record of transactions executed on the communication in “block” and manages it in a form shared by each user.
Since users share all transaction history, it is easy to find fraud even if one person edits the data.
In addition to this function, blockchain has realized a high-level security system by combining various technologies such as “consensus algorithm” and “smart contract” .
Various information can be recorded
Various additional information can be recorded in the created NFT art using blockchain technology .
For example, you can record the creator of an NFT art to prove that the work is genuine, or you can record the purchaser of an NFT art to reveal ownership .
This information is also managed on the blockchain and cannot be tampered with.
How to sell and sell NFT art
If you have experience in making digital art, try making NFT art as well.
I will briefly explain how to make and sell NFT art.
How to make NFT art
How to make NFT art is the same as how to make digital art .
In the case of images, we will proceed with production using Photoshop, Illustrator, etc.
How to sell NFT art
To trade your finished digital art as NFT art, you need to list it on the NFT Marketplace .
Follow the steps below to list on the NFT Marketplace.How to list NFT art on the NFT marketplace
- Log in to NFT Marketplace
- Create a Crypto currency wallet
- Deposit the Crypto currency required to buy and sell NFT art in your wallet
- Enter the terms and conditions for selling NFT art on the marketplace
- Upload NFT art to sell to the marketplace
Let’s create a wallet with “MetaMask” that supports Japanese services .
Ethereum, which is used as a currency in NFT marketplaces such as OpenSea, is recommended as the currency to deposit in the wallet .
It should be noted that in the open market using the Ethereum blockchain, gas charges will be incurred at the time of contract .
How to buy / purchase NFT art
The method of purchasing NFT art is almost the same as the method of selling it.How to Buy NFT Art at NFT Marketplace
- Log in to NFT Marketplace
- Create a Crypto currency wallet
- Deposit the Crypto currency required to buy and sell NFT art in your wallet
- Buy the desired NFT art
NFT marketplaces include OpenSea .
Let’s purchase Crypto currency for purchase at the exchange .
Featured news about NFT art
Here, we will pick up important news about NFT art.NFT Art Featured News
- Naoki Saito’s NFT
- NFT at the museum
- SBI Art Collection
I will explain one by one.
Naoki Saito’s NFT
The NFT created by Mr. Naoki Saito, who is famous as a Pokemon card illustrator, was sold for about 6 million yen.
Mr. Naoki Saito is paying attention to the fact that the creator is paid even in the secondary sale when buying and selling NFT, and it seems that he is expecting to improve the working situation of creators.
It is hoped that the use of NFT will become widespread and that a world line where more creators will play an active role will be realized.
NFT at the museum
In the summer of 2021, “Naruto Galle no Mori Museum” was renamed to ” NFT Naruto Museum “.
Since many of the conventional NFT markets have been developed mainly from the IT industry, the NFT service originated from museums has attracted the attention of many stakeholders.
The block chain used is BSC (Binance Smart Chain), but it seems that Japanese yen can be used for payment.
Although it is a blockchain that seems difficult for beginners such as swaps and remittances, it is hoped that it will become popular with the spread of NFTs that can be traded in Japanese yen .
SBI Art Collection
Japan’s first NFT art auction will be held at the SBI Art Collection .
SBI seems to be focusing on the NFT business, such as the acquisition of nanakusa .
An example of NFT art bought and sold at a high price
NFT art that can implement various functions by utilizing blockchain technology.
Here are three examples of NFT art that have been traded at high prices.
Digital art collage wins auction for about 7.5 billion yen
The highest-priced NFT art ever traded is “Everydays – The First 5000 Days” by American digital artist Beeple.
When this work was put up for sale by the major art auction company Christie’s on February 25, 2021, it was bargained by many bidders and finally sold for about 7.5 billion yen .
This successful bid made Beeple engraved with his name as one of the most prominent artists.
Virtual sneakers
On April 22, 2021, 1SEC, which handles many services centered on the AI human business, launched virtual sneakers on the NFT marketplace.
As it is a virtual sneaker, you cannot wear it even if you purchase it.
It is just something to “watch”.
This product is on sale in an auction format and is sold out at 5 ETH (about 1.4 million yen at the rate at that time) 9 minutes after the start .
1SEC has revealed that it has signed contracts with several companies following this sold-out, which also shows the strength of the NFT market.
Dogeocin
Dogecoin is one of the virtual currencies, and it became a hot topic in 2021 when its value was greatly increased.
The Shiba Inu shown in the image actually existed in the past, and the original image was put up for auction as an NFT on May 31, 2021.
When the first bidder appeared on June 8, the price rose steadily, and finally on June 11, it won the bid at 1696.90ETH (400 million yen or more at the rate at that time).
If the price rises this much, it seems that not only artists but also investors will have a chance.
If you want to buy or sell NFT, Coincheck NFT (β version)
For domestic services, you can trade NFTs with Coincheck NFT.
The service started in March 2021, and users can trade NFTs using their own Crypto currency .
Most NFT marketplaces require Ethereum to buy and sell NFT art, as most NFT art is created on the Ethereum blockchain .
Coincheck NFT can use 13 types of virtual currencies handled by Coincheck for payment, so it is a particularly recommended NFT marketplace for those who want payment methods other than Ethereum .
The service currently being developed is a beta version and deals mainly with NFTs in the game field, and NFT art transactions are not supported.
Here are some of the products we currently handle.Products handled by Coincheck NFT
Crypto Spells
Crypto Spells is a domestic trading card game using blockchain by Crypto Games Co., Ltd. released in 2019.
Sales of 600 ETH (about 20 million yen) on the first day of release became a big topic.
Crypto Spells uses blockchain technology to issue and manage cards, so data is not easily tampered with, so you can enjoy the game in various ways, such as owning the card as an asset or creating an original card. You can play.
Users can buy and sell in-game cards within Coincheck NFT .
The Sandbox
The Sandbox is a user-driven gaming platform provided by an affiliate of Animoca Brands in Hong Kong .
Positioned as a “sandbox game” as a game genre, users can freely act in a virtual space called Metaverse.
Isn’t “Minecraft” famous as a game of the same genre?
In Coincheck NFT, you can trade characters and items you created in addition to the land “LAND” on the Metaverse.
As of September 2021, NFT art cannot be traded, but it is expected that more NFTs can be traded in the future.
Current challenges in NFT art
NFT art has greatly expanded its scale by attracting the attention of investors, but its future is not only bright.
Here, we will introduce the current challenges of NFT art.
Environment issues
NFT Art uses the blockchain of each currency at the timing of transactions.
Blockchain has advantages in high security and smoothness of transactions, but it has to do huge calculations instead.
It takes energy to perform calculations on the Internet, which leads to environmental destruction as a distant cause.
China has announced a policy of banning Bitcoin mining, but it seems that environmental destruction due to mass consumption of electricity is included as one of the causes .
The environmental problem of virtual currencies that utilize blockchain is an inseparable issue for future development.
Fee will be charged at the time of contract
As of 2021, most NFT art is made using the Ethereum blockchain .
The advantage of Ethereum is that you can easily create NFT art, but there is also the disadvantage that you will incur a “gas fee” .
The “gas fee” is the fee that is incurred when making a contract called “smart contract” adopted by Ethereum .
Since the gas bill will increase according to the amount of communication by users, it will be disadvantageous for artists and investors as the NFT market expands.
Legal development is not catching up
As with virtual currencies, NFT art has just started its service, so legal development has not caught up at home and abroad.
Among them, “art forgery” is a particular problem .
NFT art can give digital art “uniqueness” by utilizing blockchain technology.
There are many cases of misusing this and listing other people’s copyrighted works as their own .
This “gray zone” around copyright should be eliminated as the legislation progresses, but it is still an uneasy factor.
Future potential and future prospects of NFT art
I will explain the future potential and future expectations of NFT art.
We recommend that you take on the challenge of actually trading after carefully determining the issues and future potential.
NFT Art Charity Project
It has been decided that “LINE Blockchain” will be adopted in the NFT art charity blockchain by Shingo Katori.
In this project, the person who made the donation will receive NFT art drawn with the theme of “I enjoy”.
This charity event is by Shingo Katori and will be donated in full to the Paralympic Support Center of the Japan Foundation.
With the start of this project, it can be said that the name recognition of NFTs in Japan has increased.
Taking this opportunity, we can expect the NFT market to expand, so attention will be focused on future trends.
Expanding the market for trading NFT art
According to the NFT data site NonFungible , NFT trading volume in the first quarter of 2021 is about $ 2 billion .
That ‘s 20 times more than the $ 100 million recorded in the fourth quarter of 2020 .
And since NFT art is a mechanism that can add “uniqueness” by handling digital art on the blockchain, if NFT can be utilized in all digital art markets, its scale can still be expanded. Is believed to be.
Only a handful of artists are using the NFT Marketplace, so the market for NFT art will grow as it grows in popularity.
Increasing usage of NFT
Currently, NFT is mainly traded as art, but there is a strong idea that it will be used in various ways in the future using its blockchain technology .
For example, NFTs are used for electronic voting during elections because of the advantage of blockchain technology that it cannot be tampered with .
In 2018, a demonstration experiment was already conducted in West Virginia, USA, and many local governments such as Tsukuba City are focusing on development in Japan.
If the convenience of NFT itself becomes clear, more and more people will try NFT art.
Everything could be an NFT
NFT art can value and trade various things other than “pictures” and “music”.
On March 22, 2021, Jack Dorsey, co-developer and CEO of major social networking service Twitter, made the first Tweet he posted into an NFT and sold it for about $ 2.91 million . did.
I’ve never thought that one Tweet would create value.
In this way, the market size of NFT art is expected to continue to expand because it is possible to value and trade what was previously thought to be worthless .
Reviews and reputation about NFT art
Here is a summary of Tweets that mention NFT art on Twitter.
The number of tweets about art in NFT art is increasing day by day, so it seems that we can expect future price increases.
Since NFT art is basically created using the Ethereum blockchain, most NFT marketplaces use Ethereum as the currency at the time of trading .
It is possible that the number of currencies that can be used will increase in the future, but it is recommended that you purchase Ethereum .
NFT art is traded by many investors other than artists.
Just by relisting NFT art that was purchased at a low price immediately after its release at a high price, you can earn many times the difference as a profit like this person.
This is also an investment method that is possible because NFT Art is a rapidly expanding market.
This is a Tweet by the artist who exhibited NFT art.
NFT art created on the Ethereum blockchain will incur gas charges at the time of transaction .
This gas bill will increase according to the amount of communication on the blockchain, so it is expected that it will continue to increase in the future.
Q & A about NFT art
Finally, here are three frequently asked questions about NFT art and their answers.5 Q & A about The Sandbox
- Is there an age limit for creating and trading NFT art?
- Is there an initial cost to create and trade NFT art?
- Do I have to pay taxes when I trade NFT art?
Read it all before trading NFT art.
Is there an age limit for creating and trading NFT art?
To trade NFT art, you must create an account in the crypto wallet and NFT marketplace.
Also, since virtual currencies such as Ethereum are used when buying and selling NFT art, it is also necessary to open an account on the Crypto currency exchange.
Although it is possible for minors to purchase Crypto currency, domestic exchanges do not allow minors to open accounts in principle.
It is possible to open an account at some overseas exchanges over the age of 18, but we do not recommend it due to security concerns.
Is there an initial cost to create and trade NFT art?
There is no initial cost when creating NFT art.
Only when listing on an NFT marketplace such as OpenSea will you need to pay for gas.
If you have created digital art, let’s create and sell NFT art more and more.
Summary of NFT art
This time, I introduced NFT art.Summary of this article
- NFT art is a combination of digital art and cryptocurrency blockchain technology.
- NFT art can prove its uniqueness and value digital art by utilizing blockchain technology
- NFT art is created in various forms other than pictures and music
- The NFT art market has room for expansion due to the size of the digital art market.
- It is highly possible that the gas cost when exhibiting NFT art will increase in the future.
NFT art is a market that has just been talked about.
There are still many investment opportunities left, so be sure to try trading as soon as possible.
About Author
