NFTs for Art and Artists
Refer to Artists and sculptures using this method as a form of rare artwork ownership in pros.
It’s the process of converting rights to an asset into a digital token on a blockchain. Art tokenisation enables creators of arts, collectors, and dealers to create their own token ecosystem of art and collectibles to empower themselves.
- Fractional ownership improves efficient ownership structure. A tokenised artwork can be owned by multiple investors, which means it can be openly traded on multiple global marketplaces. The art industry is one of the most conservative industries, yet the market is growing every year, and now stands at $63 billion, yet only 8% of the 20% sales online can be traced to the real original creator.
- Improved transparency between investors and artists/creators. The current state of the art industry is full of darkness, as it is not easy to trace how art is used across the communities of investors and artists. With a tokenized art, transparency is ensured as owners and collectors can trace usage and revenue stream.
- Traceable copyright ownership. With the immutable registry of art, certificates, copyright records, artists can ensure their intellectual property rights are respected and appreciated. The result is more authority among artists as they can present their collectibles and show their prowess in the industry.
- Efficient secondary markets with instant liquidity and low fees. With tokenized artwork, creators get paid instantly from those using secondary copies of their artwork. The net results are better revenue flow and low fees for secondary users.
- Reduced cost of onboarding. We all know how the traditional art market is difficult to penetrate, especially by the upcoming artists. Tokenisation of art will ensure new creators can join the art community and compete with their established counterparts. All that matters is one’s creativity and not longevity in the industry.
- Flexibility on the art use. With tokenisation of art, there is the added sense of flexibility that allows creators to adjust to the demands of the market, and produce what fans want. Artists can also learn from each other, by adopting new skills that resonate with their fan base.
- More artists’ power to make decisions on the direction of the platform and how their artwork can be used. In a centralised platform, artists are not able to decide on how their creative artwork can be used. With a tokenized artwork, the artist is empowered to be a decision-maker on the platform’s direction.
- Secure transactions. Blockchain-based ownership tracking means every transaction on artwork can be tracked. The process allows for private investor-to-investor trading, as well as, a direct link between private investors and artists themselves.
The art industry is one of the biggest beneficiaries of blockchain technology and NFTs. A tokenized art brings power back to the creators of the art content. A benefit of issuing an NFT is the ability to earn a piece of the bid fee every time your tokenised art receives an offer in the fractional ownership arrangements. Some marketplaces keep 100% off fees to themselves but platforms like Zloadr, reward the NFT creator or rights owner if the asset.