NFT art has exploded in popularity, with major auction sales and broad media coverage. But how exactly does it work under the hood? Let’s break down how NFT art works: best explanation in 4 easy steps.
Digital Scarcity
At a basic level, NFTs introduce verifiable scarcity to digital files like art, videos, GIFs etc. These infinitely reproducible items can be minted as provably scarce “original” versions.
Each NFT art piece is certified on blockchain as a unique, owned object – even if underlying image files are copied everywhere. Ownership is baked in.
Blockchain Proof
NFT art relies on blockchain ledgers like Ethereum to certify ownership. Your NFT art purchase transactions get permanently recorded on these public decentralized networks.
The blockchain entries serve as unalterable proof that the art NFT belongs to your cryptocurrency wallet address. Fraud is mathematically prevented.
Related: “Top 7 Reasons Why NFT Art Increases in Value“
Programmable Perks
Beyond just proof of ownership, NFTs can also be programmed to provide added utility like special access, merchandise discounts, voting rights etc. This further incentivizes purchase and creates inherent value.
For example, some NFT art projects grant VIP benefits to holders. The possibilities are still being explored.
Direct Artist Support
A key appeal of NFT art is letting digital creators directly sell their work without mediators. Artists list their work on NFT marketplaces and keep earned proceeds.
Royalties can also be programmed into NFT art so artists earn a percentage each time their work is resold. This recurring income stream is revolutionary.
While the technology is complex under the surface, NFT art provides a new model for digital ownership, support of creators, and participatory fan communities. As adoption increases, the full benefits will continue emerging. We hope this blog helps you understand how NFT art works: best explanation in 4 easy steps.
