The distributed ledger technology (blockchain) has some distinctive advantages over classic databases. Information is stored sequentially in a chain of blocks, cryptographically linked to each other, and duplicated on thousands of servers (network nodes).
The first advantage: the data in the blockchain cannot be changed, deleted, or added retroactively.Second: smart contracts — automatic fulfillment of the obligations of the parties without dependence on third parties and intermediaries.
NFTs are created and stored on the blockchain. In most cases, the second most important blockchain network Ethereum is used, which allowed the creation of tokens of different standards and the use of smart contracts.
NFT is a non-fungible, or unique, token.
NFT can become any digitized object — pictures, music, videos, photographs, audio tracks, game characters, game weapons, etc. The uniqueness of NFT tokens lies in the fact that they cannot be replaced with an equivalent object, like currency or bitcoin; NFTs are not divided into parts — that is, a token cannot be exchanged for smaller tokens.
The rights to the token are sewn into the token itself belongs to the person who created it. In addition to the digitized property, NTF has changed its owner’s unique wallet number.
The main feature is that the blockchain allows transactions without intermediaries. Only the blockchain encrypts and transmits completely different data: money transfers, confirmation, private information.
Due to the decentralization and transparency of the blockchain, its characteristics will automatically be reflected in the tokens stored on the platform. These characteristics are applied to art in the following ways.
First, ownership is converted to digital tokens, which increases the liquidity of artworks. Artists post and distribute their work online. If they want to sell a particular piece, they can set a price based on its value.
Second, NFT illustrations can also be used as a reliable verification and authentication method. With traceability, it becomes easier to track certification and product owner, and people no longer need an authentication certificate. Everything is done in a chain while maintaining the integrity and value of the work.
Finally, it lowers the barriers to entry for independent artists who can use this medium to host and promote their art without having to pay expensive galleries for services. It also helps artists retain all ownership of their work while avoiding paying fees to third-party intermediaries or agencies, reducing losses, and increasing the profitability of art deals.
What is Qube?
Qube is a multifunctional crypto community that offers a range of decentralized finance (DeFi) services, swap protocol and staking app, as well as a cryptocurrency platform for creating and trading non-fungible tokens (NFT) and many other convenient features.
What Does NFT Mean for Artists? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.