In early March, a painting by Morons (White) by the famous street artist Banksy was publicly burned in Brooklyn. But it wasn’t an act of vandalism. The painting was burned by a representative of the blockchain company Injective Protocol, who personally bought it for $95 thousand. The destroyed creation of Banksy was converted into a token, which was immediately put up for auction and sold four times more expensive - for $ 380 thousand. For comparison, in October, the auction with another painting by the artist closed at $ 10 million.
The act of burning a Banksy painting was one of the first known cases of turning a physically existing art object into nonfungible tokens or NFT, that is, a unique or non-fungible token that confirms ownership of a digital asset.
However, this amount is far from $69.3 million, which was paid for the right to own a work by the American artist Beeple called Everydays: The First 5000 Days. The JPEG collage, assembled from five thousand images, has become not only the most expensive NFT, but also one of the most valuable works of modern art in history.
Why does an artist need NFT?
Thanks to NFT tokens, content authors (artists, musicians, video makers, bloggers) can earn money without intermediaries, receiving funds directly from the audience. In addition, NFT allows you to earn on exclusive (and expensive) transactions.
According to CoinDesk, in February 2021, users spent about $ 100 million on crypto goods that do not physically exist. Thanks to this, many artists without a world name began to earn much more. For example, the art director of Halo Infinite, Nicolas Bouvier, sold his crypto art for almost $ 35,000, and former DC artist Jose Delbo earned about $ 2 million on the drawings of Wonder Woman.
Why does the buyer need NFT?
NFT tokens allow the audience to financially support their favorite author and give users the right to use digital content, whether it’s posting on social networks, using as an avatar, and so on. In addition, works with an attached NFT are a kind of collectible asset, the value of which may rise or fall over time.
If a picture existing in only one copy is attached to such a token - its value will be as high as possible. A striking example is the collage by Beeple, which was mentioned earlier.
The Future of NFT
Tokens can permanently change the system by which digital content copyrights work, and protect crypto paintings and videos from illegal copying. Also, NFT will greatly ease the burden of copyright for musicians and will allow streaming services to license films and TV series faster.
What is the problem of the NFT industry?
The mass adoption of Ethereum is a victory for the blockchain, but it is problematic for the user. Why? If you’ve ever used Ethereum in 2021, you know it’s slow and expensive.
Why is layer 2 important for NFT today?
Layer 2 scaling solutions are the answer to the question of how to make Ethereum usable. While an Ethereum transaction can take 10 minutes and a painful amount of ETH for gas fees, layer 2 transactions happen instantly with almost free fees. Layer 2 transactions are inexpensive, fast, and make Ethereum usable in NFT. Layer 2 from ZKSwap(v3 NFT) changes the rules of the game of the new market, providing a comfortable interaction of the artist, the buyer and the marketplace. V3 makes convenient actions such as payments, NFT minting and smart contracts.