The world of NFTs is an exciting new venture for many artists. Creators have sold their work for record prices and solidified their places in the rapidly changing art world. Why have these artists been so successful in the NFT world? Artists benefit primarily through fan connections and the technology of NFT transactions.
How can artists connect with fans through NFTs?
One of the biggest challenges artists face is finding fans that will invest in them. They need to find a sufficient number of people who both see value in their work and have sufficient funds to support their projects. Creating NFTs can be a valuable endeavor for artists as it can both strengthen their existing connections and allow them to create new ones.
Existing artist-fan connections are strengthened since NFTs allow fans to purchase a piece of the artist's work on a blockchain, thus offering them a permanent connection to the artist.
New fans can be found using NFTs as investors can access an artist's work through accessible platforms from anywhere. This allows an artist’s work to be viewed by a new type of investor, with the money to support their work. For a visual artist, an NFT platform can replace the role of galleries and auction houses which cater to a limited number of interested parties and take away profits from the artist. The transaction process as a whole looks different on NFT platforms.
How do NFT transactions benefit artists?
With the removal of the need for galleries and auction houses comes the removal of the middleman between artists and buyers. Since NFT transactions are based on smart contracts, there is no need for lawyers or art brokers. Smart contracts are carried out by computers and are irreversible once created. This eliminates the need for trust between a buyer and a seller, allowing artists to handle deals on their own.
Just as the blockchain solidifies a smart contract, it traces ownership back to the creator. As a signature on a painting or certificate of authenticity can be forged, there is an element of trust in physical proof. In using an NFT trust is again avoided as the person who mints the NFT has ownership of it that can never be transferred. This means that a creator will always have proof of their work. Forgery does occur in the world of NFTs but it is generally in the minting step when an asset is minted by someone other than the creator. Once minted, a creator does not need to worry about proving the authenticity and a buyer does not need to rely on trust in purchasing from an artist.
Finally, NFT transactions can benefit artists in terms of licensing. In the music industry, a musician goes to a producer to license their work. The producer then benefits from the song’s royalties. When creating an NFT, however, the musician can license their work on their own, once again avoiding a middleman. Any creator can benefit from NFT royalties as artists make money when their work is first sold but also potentially every time the NFT is traded after that, as a result of the permanent documentation of a blockchain.
Creators of all kinds have the potential to benefit from NFTs so long as they understand the concepts of the technology and how to use it to their advantage. NFTs are providing an intriguing new platform for artists to capitalize on and will continue to create opportunities for artists as new technologies emerge.