Crypto art consists of limited-edition collectible digital artworks that are cryptographically recorded through a blockchain using a non-fungible token. This gives digital art the same level of authenticity as traditional art, just like Andy Warhol’s original paintings, which bear the artist’s signature.
In digital art, this verification happens through an NFT, a non-fungible token, thus guaranteeing its originality. NFT is nothing more than the type of verification code (token) that is permanently linked to the work of art, making it possible to trade it safely.
This technology allows the process of sending and receiving data to be tracked and accessed by any computer in the world via blockchain. In this way, starting from the registration of the NFT, the blockchain performs the role of an expert in the field of art, ensuring the authenticity of a piece by investigating the history and existing information about it.
Crypto Art x Scarcity = Market Value
Crypto art is significantly reducing the gap between digital art and traditional art. Pieces with the non-fungible token elicit in collectors the feeling of having a unique work, even if it is a digital file (image, photo, video, music, message, post on social networks, etc.).
Since digital works of crypto art can now have their authenticity checked, they become commercially valuable. They can be sold for millions, which was previously impossible due to the inability to testify to the uniqueness of the file that contains the artwork.
Currently, there is already an audience willing to pay large sums to have original works by their favorite artists. Even though the crypto art market has existed since 2018, its growth began in mid-2020, and the “boom” took place in February 2021, with the volume of works exceeding 78 million.
“Tokenized” digital works, once registered on the blockchain, can be traded using cryptocurrencies. Virtual currencies are on the rise and have high conversion values when exchanged into fiat currencies.
Scarcity is the keyword here, as it allows for the appreciation of cryptographic arts. It all comes down to having something unique and exclusive, not unlike the most traditional form of artwork in the world: paintings.
Article and Research | Marcus Ferreira Translation and Review | Carolina Martins