What is a Non-Fungible Token (NFT)?
If you are new to the concept of a non-fungible token and how it relates to photographers then read on to learn what the latest crypto hype is all about.
An Express Definition of NFTs
According to Investopedia.com: “Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can serve as a medium for commercial transactions.investopedia.com
What You Need To Know
- NFTs are blockchain-based cryptographic tokens that are one-of-a-kind and cannot be duplicated.
- NFTs can be used to represent real-world objects such as art and real estate.
- These real-world tangible goods are “tokenized,” making purchasing, selling, and trading them more efficient while lowering the risk of fraud.
- NFTs can also be used to represent people’s identities, property rights, and other things.
So, What Has This Financial Jargon Got to do With Photography?
NFTs and digital art have been making the headlines concerning the high prices digital artworks realise on the blockchain. A new and burgeoning digital art market has developed that has application uses for photographers.
NFT photographers have a new online channel to sell images to their audiences. NFT technology allows new opportunities for all types of photography, including landscape photography, wildlife photography, drone photography, and many other kinds of photography.
Any photographer interested in selling digital versions of their images online can be an NFT photographer. NFT photography is a burgeoning digital art form, whereby a photographer is limited only by their imaginations.
Editing tools such as those available in Adobe Creative Suite, are used to create an endless range of digital assets that are placed on the blockchain for purchase by collectors of digital art.
Selling NFT photos is comparable to selling photographic prints. NFTs work similarly to limited edition prints in the non-digital world because an NFT, once minted on the blockchain, serves as an everlasting record of the authenticity of that NFT creation. It is the digital authenticity that is immutable on the blockchain which gives the NFT value and authenticity.
How Does Copyright Work?
When it comes to NFT Photography, one of the most frequently asked questions is about copyright. So, how about you? What are the collector’s rights?
After selling an NFT, the artist retains the copyright and the right to use the image for commercial purposes, printing, or licensing. However, creating another NFT with an identical image is not permissible.
The collector has no economic rights to the NFT and can sell or trade it as they wish. They can’t, for example, license copies of the file or sell prints made from it.
Of course, various arrangements with collectors and the award of certain rights are available.
How do Royalties on Future Sales Work?
The collection of royalties on future sales is an intriguing feature of NFTs. Collecting royalties off future sales is in stark contrast to the physical world, where once an image has been sold, you are unlikely to hear about it again.
It’s a different story in the NFT world.
Assume you create and sell an NFT for 0.2 Ethereum (ETH). After some time, you’ve established a solid reputation, and the NFT resells for 10 ETH. A portion of the sale is then deposited to your bank account (typically 10 per cent, though this can vary between platforms). That indicates you made 1ETH from customer A selling to buyer B in this case.
This is a significant benefit for artists because they can continue to receive money from the same source.
All Our NFTs Are Available For Purchase
As a follower of the Crowpix Digital Media blog you may visit the Crypto Crow Digital NFT store with this link to see some of our favorite NFTs, and, at the same time get a preview of the great images that Crowpix Media has put on the Ethereum blockchain via the NFT platform, Mintable app.